Saudi Arabia’s well-known oil and gas firm, Aramco, has recently partnered with Formula 1 to raise the profile of the company globally. This partnership is just for sponsorship investment, as revealed by local sources in Saudi Arabia.
Being a global partner of Formula One, Aramco not only provides fuel oils to Formula One, but also sponsors one of the teams of the F1 group. The main purpose of this sponsorship between Aramco and F1 is the sustainability of the environment and reducing the carbon footprint of the racing group.
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Watch this video to learn more about Aramco’s relationship with F1.
How much does Aramco pay for F1 sponsorship?
Aramco pays between $40 million to $45 million per year to Formula One. The contract between these two companies also states that Aramco will pay $65 to Formula One every Grand Prix. The agreement between Aramco and Formula One is reportedly worth $450 million.
Key takeaways
- Aramco says that this deal with F1 is a pure sponsorship investment to raise the profile of the company ahead of the further stock offering after its initial placement offering (IPO) failed to achieve the valuation of $2 trillion.
- This sponsorship with F1 makes Aramco the sixth-biggest global partner of Formula One after DHL, Emirates, Heineken, Pirelli, and Rolex.
- The sponsorship deal of F1 with Aramco includes trackside branding of Aramco, title rights to the US, Spanish, and Hungarian Grand Prix in 2020, and a digital broadcast of Aramco’s position in transport technology.
- Aramco will benefit from this sponsorship by connecting to more than 500 million F1 fans and sharing its success stories with the public in light of F1.
- With this partnership, both Aramco and Formula 1 will use their expertise and experience to find opportunities for the advancement of sustainable oil and mobile technologies.
- The sponsorship contract between Aramco and F1 is for 10 years (2020-2029).
- The deal of formula one with Aramco is the group’s first global deal done under Chase Carey’s Stewardship and was arranged by Formula One’s exclusive sports marketing agency, CAA sports.
How many years has Aramco sponsored F1?
The sponsorship deal between Aramco and F1 was established in March 2020, which means that Aramco has been sponsoring F1 for about 2 years now. The interesting thing about this whole sponsorship is that it is Aramco’s first-ever global sponsorship.
The reason for choosing F1 for sponsoring was its large growing fan base which ensures a good audience gets to know more about the oil and gas company.
The contract between both these parties is for 10 years, and there is a high chance that F1 will renew the contract after this one ends.
Does Aramco have any partnership with Formula 1 besides sponsorship?
Besides the sponsorship, Aramco and F1 have announced a long-term partnership with each other. This strategic partnership will allow both companies to work together on combustion engines, sustainable fuels, lubricants, and the development of non-metallic materials in vehicles.
The collaboration between Aramco and F1 also includes a licensing agreement between both parties and a sponsorship right to the team. Due to this partnership, the team working on the agreement is known as Aston Martin Aramco Cognizant Formula One Team.
Does Aramco sponsor any F1 teams?
After striking a decade-long deal with Formula One, Aramco has become an official partner of F1’s Aston Martin team. As such, the team is now referred to as Aston Martin Aramco Cognizant Formula One Team.
Aramco became a strategic partner of Aston Martin just before the Bahrain Grand Prix. As a result, the petroleum and natural gas company has a right to own 10% of the total capital of the Aston Martin Formula One Team. Together, both of them will work to make Formula One cars function entirely with sustainable fuel by 2025.
In addition to the sponsorship and licensing rights to the team, Aramco also has exclusive branding and endorsement rights. Group Chief Executive of Austin Martin Performance Technology, Martin Whitmarsh, says, “Winning in Formula One is all about assembling and managing the right ingredients optimally”.
Whitmarsh praised Aramco and said that the company’s extra high-tech expertise will contribute to improving the performance of the Aston Martin Aramco Cognizant Formula One Team.
Biggest Formula One Partners and Sponsors
| Sponsor | Est. sponsored amount per year |
|---|---|
| Aramco | $40-45 million |
| Crypto.com | $20 million |
| DHL | $30 million |
| Heineken | $50 million |
| Pirelli | $30 million |
| Rolex | $45 million |
| MSC Cruises | $30 million |
| Salesforce | $30 million |
| AWS | $10 million |
| BBS Motorsport | N/A |
| Ferrari Trento | N/A |
| Lenovo | $20 million |
| Liqui Moly | N/A |
| Zoom | N/A |
| 188Bet | N/A |
| Workday | N/A |
| Drive coffee | N/A |
| Herjavec | N/A |
| AlphaTauri | N/A |
| Read more about all Formula 1 sponsors | |
Over the years, formula one has partnered up with many big companies. Similarly, many companies have also sponsored Formula One for different purposes. Let’s see what these biggest formula one partners and sponsors are.
Aramco
Aramco is a Saudi-based oil and gas company that recently partnered with the F1 team Aston Martin in 2022. Now the team is called Aston Martin Aramco Cognizant Formula One Team. But although this partnership with one of the teams is recent, the Saudi-based oil and gas company has been sponsoring Formula One since 2020.
This partnership will try to power sustainable oil to F1 cars by 2025. More advancements and research in the field of mobile technology are also a part of the partnership. The biggest purpose of Aramco’s sponsorship with Formula One is to raise the company’s name and vision on a global level.
Crypto.com
As the world’s largest growing crypto platform, crypto.com is also partnered with Formula One. Formula One has a $100 million deal with crypto.com, and 80% of F1 teams are also partnered up with it in one way or another.
Formula One signed this partnership last year, in a five-year contract between both parties. Due to this partnership, Crypto.com gets a brand presence in different Grand Prixs, and trackside slots for the whole F1 season. Crypto.com also introduced a new award in the Belgian Grand Prix 2021 and has become the NFT partner of the group.
Crypto.com became a partner of Formula One in 2021 and debuted its partnership in the Grand Prix in Miami, which is becoming the largest crypto center in the US. Since then, audiences have seen crypto.com’s logos all over F1 tournaments. F1 fans are also excited to visit the Crypto.com fan zone, featuring loads of entertaining activities.
DHL
DHL is one of the largest logistics companies in the world providing courier, package mail, and express mail services. The company is also crowned as the longest sponsor of Formula One. DHL became the official logistic partner of Formula One in 2004, but both these companies have had a relationship of over 40 years.
In 2021, Formula One and DHL renewed their multi-year contract, allowing DHL to introduce two new awards to the Grand Prix. The two awards are DHL fastest lap award and DHL fastest pit stop award, which are awarded to remarkable F1 racers and teams.
Emirates
The United Arab Emirates-based airline has been a partner of formula one for about a decade. But this year, Emirates has announced that it is going to end its contract with Formula One. The reason that the airline is no longer going to sponsor F1 is because of payment issues.
Emirates was paying Formula One $25 million per year, but F1 was asking for twice that amount. Emirates refused, which is why their contract won’t be renewed. Apart from sponsorship rights of 15 races, Emirates was also setting up entertainment programs for Formula one fans and ticket holders.
Heineken
Heineken is a well-known Dutch beer brand which has been sponsoring Formula One since it first signed a deal worth $250 million in 2016.
Last year in 2021, Heineken sponsored Formula One Australia Grand Prix Heineken. The beer brand has full sponsoring and advertising rights on several races, and it is even expected that the brand will be able to raise F1’s reach with its marketing presence.
Heineken will use its sponsorship rights to promote its campaign, “If you drive, never drink.” There is a high chance that the deal between Heineken and F1 will be renewed in 2023.
Pirelli
Pirelli is a tire manufacturing company that has been involved in various motorsports since 1907. The company has also been the official global tire partner for Formula One since 2011. This contract between Pirelli and Formula One is due to end in 2024.
The reason why F1 prefers Pirelli tires before anything else is because of the “green technology” the company uses in its tires for the betterment of the environment.
The partnership between Pirelli and F1 is simple, Pirelli provides Formula One cars with top-quality tires and in return, Formula One advertises Pirelli to local audiences.
Rolex
Rolex, a well-known and expensive Swiss watch brand, became Formula One’s global partner and official timepiece in 2013. The company pays F1 $40-$45 million yearly to get sponsored. In 2022, Rolex officially completed ten seasons of F1 races with the Formula One group and their Pit Lane Clock accompanied Formula One to five continents for races. At every Formula One Grand Prix, the Rolex pit lane clock is used to record timing. As the years pass, it seems that the partnership between Rolex and Formula One is only getting stronger.
MSC Cruises
MSC Cruises is an Italian cruise line that is the largest cruise operator in Europe. Recently, MSC Cruises became the official global cruise partner for Formula One. The multi-year deal between both parties was signed in the Bahrain Grand Prix in 2022.
This deal between MSC Cruises and Formula One is estimated to be around $20 to $30 million per year. Motorsport Week has also reported that the agreement between both parties is worth more than $450 million, and Formula One has even promised annual title sponsorship to MSC Cruises.
Salesforce
Salesforce is an American cloud-based software company that provides customer relationship management software and applications focused on sales, customer service, and application management. With its five-year contract, Salesforce has become the global power partner of Formula One.
F1 and Salesforce will utilize their partnership to collaborate on multiple fan engagements and to create a sustainable environment. The IT teams of Salesforce will work on marketing, sales, commerce, and customer services. The partnership between Salesforce and Formula One is worth $130 million.
AWS
Amazon Web Services or AWS is a subsidiary of Amazon which provides cloud computing platforms and APIs to individuals. The partnership between F1 and AWS was recently announced in November 2022, when it was revealed that AWS has become a new global partner of Formula One. This partnership will help in the innovation and digital transformation of Formula One. AWS also sponsors the F1 team Scuderia Ferrari.
The partnership between AWS and Formula One will explore new, unique and innovative ways to enjoy F1 through machine learning, artificial intelligence, and cloud technologies.
Lenovo
Lenovo is a Chinese multinational technology company that specializes in designing and manufacturing different computer products. The company announced its global partnership with Formula One in March 2022, right before the racing season. As a result of this partnership, Lenovo provides the f1 series with PC systems, servers, and high computing.
Over the years, Lenovo will also use its technology on the Formula One base as well as its races, using its cutting-edge technology to bring the highest level of racing entertainment to its worldwide fan base. This partnership will show Lenovo’s tech capabilities to the world and as a result, the company will gain recognition for its work in technology.
Conclusion
Formula One often tries to partner with companies that can promote the idea of a sustainable environment for F1 races. Over the years, Formula One has partnered with and gotten sponsored by many big companies that have helped bring high revenue to the group. Being a partner of Formula One was a huge step for Aramco.
But it has given endless advantages to the Saudi-based oil company to promote their ideology and ideas. Now Aramco has also become a global partner of the F1 team Austin Martin.
