In mid-December, FIFA announced that the 2030 World Cup would take place in six countries across three continents. At the same time, many American sports have been moving toward Europe in recent years to expand their reach.
These events are often sold out in record time, but they cannot match the global spectacle represented by the organization of 24 Grands Prix spread over five continents and 21 countries, with audiences constantly increasing.
In this context, Formula 1 stands out among sports competitions seeking income from sponsorship and partner participation.
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This is why Emily Prazer, commercial director of F1, considers that the series continues to increase its portfolio of partners.
“We talk about it all the time; the appeal of the global brand is something we cannot take for granted,” she told Autosport Business.
“We obviously compete with the NFL and NBA in the US, as well as the Premier League in the UK. But I think people are really starting to understand our global reach with 24 races on most continents. »
“We have also done well in gaining the trust of brands, seeing our strategy come to fruition through some of the global partnerships we have had for a long time, which has allowed us to rely on data, which is very useful. »
For 2024, F1's longest season, the championship welcomed new agreements, the most significant being the one signed with LVMH, which integrates several of their brands into a 10-year global partnership, including Louis Vuitton, Moët and TAG Heuer.
Stefano Domenicali, President & CEO of Formula 1
Photo par : Liberty Media
Add to that Santander and Globant joining the circle, Crypto.com extending its deal, and Lenovo moving to the highest tier of global partners, and it's been a successful year for Prazer and his team.
“I think LVMH is exactly the type of partner we want to work with, just on the activation side,” she added.
“You'll see some really fun things that they're collaborating on with us for next year around each of the three brands, which, again, elevates our status compared to other sports. »
“We are probably one of the most agile rights entities when it comes to partnerships. We don't have a rule book like 'you must do this, you must do that'. »
“We're very creative in meeting brand objectives, and I think that's really set us apart from the rest. »
“We are quite thoughtful about our collaborations. Obviously, some aspects are relatively progressive. If you look at brands like AWS, Salesforce or Tata, they support our business very well, which is very useful when we speak and we can tell stories. »
“Not everyone has the chance to weave technology into their partnerships, and we have that opportunity, in addition to wanting to work with the best global brands. »
“So we are very careful about the partners we choose because it is based on the value they bring to our fans, not just an injection of money into the sport. Obviously we appreciate the money! I think that's the case for all sports, but for us it's really about how they engage. »
The appeal of F1 has probably never been stronger
Photo by: JEP
With so many new partners joining different categories or licensing deals, is Prazer concerned that there could be too many brands looking to establish themselves in F1?
“We definitely have category exclusivity, so you'll never see us have two partners in the same category,” she said.
“I don’t think we’re in danger of oversaturating ourselves. What you'll see is agreement values becoming more meaningful, because we have a scarcity problem. We will never exceed a certain number of partners, and we are very consistent in our diligence in assessing the value they bring. »
Despite the already large number of races on the calendar, some regions of the world still do not have an F1 Grand Prix.
Rwanda is interested in bringing the series back to Africa, while Argentina is mooted as a potential candidate to host a second race on the vast South American continent, offering new partnership opportunities if they materialize.
“When the racing promotion team starts discussing the calendar, we obviously work with them on opportunities because we want to make sure we are aligned with the value of that racing market,” Prazer explained.
“Particularly in Asia, we have a lot of commercial opportunities which, if we had a few more races there, will materialize quite quickly. »
“And I think we've managed that really well with our promoters by creating distinct identities for each of our Grands Prix. »
