Analysis of the F1 sponsorship portfolio ahead of the 2025 season

Time never stands still in the world of Formula 1, and this is especially true for the series' business strategy.

Under the leadership of commercial director Emily Prazer, Formula 1 has undergone rapid evolution, becoming more commercially conscious than ever before.

The glamor series of motorsport has always been about money, but there had never been an official candy bar or sponsored drag reduction zone like there was in Las Vegas. These are truly new business horizons.

With the growing appeal of Formula 1, brands are jostling to get a piece of this growing pie. Previously, the series opted for a selective approach to its partnerships, focused on selling rarity and exclusivity – but this was at a time when the world's attention was less focused on Formula 1.

So, what is the state of the series' sponsorship portfolio heading into the 2025 season and where is it likely to evolve? BlackBook Motorsport offers us its analysis.

What's new for 2025?

Given that most of the new deals for this season were finalized last year, it's easy to forget the range of partners who have joined the show.

The most significant contract was that concluded with the LVMH Groupa historic ten-year partnership with Formula 1. This would be valued at $150 million per season, which, if confirmed, would make this deal an unprecedented $1.5 billion.

For now, Tag Heuer was appointed as the official timekeeper of Formula 1, while Louis Vuitton et Moët Hennessy are also part of the contract. Although no official designations for these two brands have been confirmed, it is likely that Moët will take on the role of official champagne.

It is suggested that other brands under the LVMH umbrella will join this partnership, but no additional information has been disclosed at this time.

LVMH was the only new addition to the global partnership portfolio.

In the expanded portfolio, a sign of the future commercial strategy of Formula 1 is the contract signed with Nestlé so that its brand KitKat becomes the official candy bar of the series. The partnership will expand globally in 2026, at which time other similar agreements could also be established.

Santander has agreed to become the official retail banking partner of Formula 1 starting this season, with a particular focus on promoting its Openbank brand, launching in the United States at the end of 2024.

Formula 1 is also starting to take licensing more seriously, opening itself up to deals with Lego et Mattel. The multi-year deal with Lego covers all teams, while Mattel will offer a full line of Hot Wheels cars. The series shows a desire to appeal to the younger generation while pursuing high-level partnerships.

A more modest, but significant, partnership is that with Aggreko. This agreement, focused on sustainability, will provide low-carbon energy solutions at all European Grands Prix in 2025, following several tests in recent years.

Santander has also chosen to join the Williams team for 2025, following Spaniard Carlos Sainz after his time at Ferrari.

Who is still there?

The size of Formula 1's global portfolio underlines the commercial health of the series.

A notable example is the partnership with DHLwhich has been Formula 1's global logistics partner since 2004 – making it the series' longest-running long-term contract – and which recently signed an extension of its $40 million-per-year deal through 2024.

The previous year, extensions were agreed with Heineken, MSC Cruises et Pirelli. The Dutch brewery has been associated with the series for nine years, having recently promoted its non-alcoholic beer in a deal worth a total of $250 million.

Pirelli will continue to be Formula 1's exclusive tire supplier until 2027, with the possibility of a further year, having been with the series since 2011. This partnership was elevated to a global level in 2018.

MSC Cruises has signed a contract until 2026 that includes the ability to sell hospitality packages on board its ships during specific Grands Prix.

Other current partners include AWS thanks to a global multi-year contract signed in 2022, an agreement of 30 million dollars per year with Salesforce until 2027, as well as an airline partnership with Qatar Airways also until 2027.

Several extensions will come into effect for 2025. Lenovo signed a multi-year renewal which elevates it to the rank of global partner. Motorola became the global smartphone partner of the series under this agreement.

Crypto.com also showed that the cryptocurrency sector is not done with Formula 1, signing a $20 million per year extension until 2030.

In 2025, the regional partnership of American Express will be transformed into a global contract, even if it will not be officially recognized as a global partner. During this time, 188Bet will continue to be the official Asian sponsor of the series under a multi-year agreement.

To discover all of the series' official partnerships, consult the SportsPro Formula One Commercial Guide.

What future for Formula 1?

It's clear that expansion is the goal for Formula 1. The series has a low sponsorship renewal rate, with only AlphaTauri, Ferrari Trento, Rolex and Workday dropping out compared to last year. Indeed, Ferrari Trento and Rolex wanted to stay and left the series only because of the agreement with LVMH.

However, there is a limit to the amount of sponsorship Formula 1 can absorb, so any expansion needs to be considered. Deals like KitKat becoming the official candy bar of the series, and thus gaining a specific designation, are expected to become more common as brands seek to stand out.

Artificial intelligence (AI) will be a major area of ​​expansion this year, but AWS is already handling it on a global level for the series. Perhaps a small business could target a specific niche as this technology gains prevalence?

Formula 1's efforts to expand its calendar could also have a commercial impact. Rwanda is most likely to join the schedule first, opening up the African market.

The series is also eyeing a greater presence in Asia, with potential races in Thailand and South Korea. The arrival of Derek Chang as the new managing director of Liberty Media could also play into this initiative, given his extensive experience in the Asian market after leading the Chinese operation of the National Basketball Association (NBA).

Finally, the launch of the all-female F1 Academy series in 2023 has provided a new opportunity for brands wanting to support women in motorsport, with brands such as Tommy Hilfiger, Puma and Charlotte Tilbury having signed up. However, it is worth noting that it has been 23 years since a woman took part in a Formula 1 race. The rise of a female driver could generate considerable sponsorship interest.

Overall, although Formula 1's commercial portfolio appears to be reaching its limits, the LVMH deal has shown that the series is willing to evolve its strategy to secure meaningful deals, even if it means breaking with some existing partners.

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As always, money will remain the universal language of Formula 1.

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