Formula One is considered one of the most thrilling and challenging auto sports. This sport merges fear, excitement, and fierce competition into one and puts together a spectacular show for fans and critics. A common belief is that racing is one of the most expensive sports to invest in.
However, that makes complete sense. Formula One has a global TV audience of around 1.9 million annually.
Since Formula One has quite an audience, F1 sponsors can earn a handsome sum of money, and being an F1 sponsor usually puts forward benefits and benefits only.
As per statistics sourced by RTR sports in 2020, the lowest figure a sponsor pays is 100,000 dollars. Whereas, if we peek into the other end, sponsors who can afford to pay more break the 100-million barrier and put forward more than 200 million dollars!
The amount an F1 sponsor must deposit can vary from sponsor to sponsor and depends upon numerous factors.
These factors include the team involved, the amount of TV coverage required, and where the sponsor’s logo appears on the car. You must have realized that the amount a sponsor pays varies by quite a margin.
Over the past few years, fans and critics of Formula One have wondered numerous questions regarding Formula One Sponsors and Partners.
One of the most frequently asked questions is how much F1 sponsors and partners pay Formula One.
Within this article, we answer this question. Therefore, make sure you continue reading!
Table of Contents
Watch this video to learn more about the economics of Formula 1 sponsors and partners.
What is the difference between a sponsor and a partner in F1?
The difference between a sponsor and a partner in Formula 1 is easy to explain. A partnership is an agreement between two entities that combine their resources to offer a service where the revenue is shared between the two entities. A sponsorship is an agreement where an entity exchanges money or its services merely for the right to be associated with the brand.
- To sponsor any Formula One team, being able to afford to deposit a great amount of money is a requirement
- The amount a brand deposits varies from brand to brand
- Some brands deposit up to 200 million dollars
- Formula One has a global TV audience of around 1.9 million annually, which means that publicizing your brand via Formula One is a great decision
Formula One Sponsors and Partners
Formula One opened its doors to Aramco as a partner in March 2020 and signed a long-term deal that is worth forty million dollars. Since then, Aramco has been one of the biggest partners of Formula One. Aramco is the sixth global partner of Formula One and is a Saudi-based leading integrated energy and chemicals company.
Aramco believes that energy equates to opportunity and produces approximately one in eight barrels of the global oil supply. Aramco also develops new energy technologies and focuses on making all its resources more sustainable. Aramco struck a deal with Formula One merely to promote stability and sustainability within the energy sector.
Aramco has risen in fame over the past few years for investing in emerging technologies. If the success of Aramco keeps increasing as projected, there is no doubt that the presence of Aramco in Formula One will increase. Aramco’s partnership with Formula One brings numerous benefits to the table.
The contract between Armaco and Formula One marked the first partnership of Aramco. The partnership allows the energy and chemicals company to connect with over five hundred million racing fans. This partnership includes trackside branding and grants Aramco the title rights to prominent Formula One races. Additionally, all Formula One broadcasts will also feature Aramco.
Read more about how much Aramco pays to sponsor Formula 1.
Formula One welcomed an emerging cryptocurrency platform as a global partner in 2021 and a lead partner in the sprint series. Crypto.com is a renowned platform that has emerged as one of the most reliable platforms for buying and selling cryptocurrencies. Although the complete contract terms have not been disclosed to the general public, a few details are available.
The contract signed between Crypto.com and Formula One will last five years, and the total sum is more than 100 million dollars. The Crypto.com agreement took effect a day before the 2021 British Grand Prix in England. The deal between Crypto.com and Formula One allows the cryptocurrency platform to benefit in various ways.
According to the contract terms, the cryptocurrency site will get a brand presence around Formula One events. In addition to prominent publicity across the circuit, the crypto exchange’s branding will be visible across the Formula 1 Crypto.com Miami Grand Prix campus, the podium, and the trophies.
In addition to that, the crypto site will also receive trackside slots at Formula One races. The promoters of the Miami Grand Prix also established a nine-year deal with Crypto.com, making the platform the title sponsor of the newest formula one race. This deal establishes Crypto.Com as an integral part of the emerging formula one event.
The crypto.com branding is visible in the title and logo of the event. The event is named the Formula 1 Crypto.com Miami Grand Prix. The famous cryptocurrency platform has been a consistent support to Formula One for years now. The renowned crypto exchange signed a partnership agreement in 2021, where the platform sponsored the sprint series for a reported $100 million.
Before striking that deal, the cryptocurrency exchange signed a multi-year contract with Aston Martin Formula One Team in 2021. Every time the crypto platform signed a sponsorship or partnership deal, it brought numerous experiences to Crypto.com fans.
By partnering with Formula One, Crypto.com has been able to grow its brand awareness at an international level. Crypto.com also looks forward to partnering with F1 to develop exclusive NFTs and connect fans to the sports in newer and unique ways.
Read more about how much Crypto.com pays to sponsor Formula 1.
DHL, an international shipping company, and Formula One share a long-standing partnership. DHL is presently the largest logistics company, and F1 hosts races in twenty-one countries. Therefore, logistics holds unparalleled importance in the Formula One world.
For more than forty years, DHL has been responsible for ensuring the smooth delivery of race cars, fuel and racing equipment to the venues where formula one races are held. DHL is an official logistics partner of Formula One, which ultimately means that the partner’s position comes with numerous responsibilities.
DHL is responsible for creating a team of skilled motorsport logistics. The team DHL creates must work closely with the management of Formula One and is supposed to ensure that the logistics sector functions smoothly throughout tests and official test runs. However, the responsibilities of DHL don’t stop at logistics.
As the official logistics partner, DHL is responsible for providing air freight, road freight, ocean freight, and express delivery services. The DHL team of skilled motorsport logistics is responsible for working with the formula one team to book their transport.
The motorsports team handles every aspect of the commute, which include assisting in booking their mode of transport, handling the documentation of their respective mode of transport, helping with customs, packing, and so on.
DHL is a founding partner of the newly launched Formula one Esports series and sponsors two awards in Formula One. The awards DHL sponsors include the DHL Fastest pit stop award and the Fastest Lap Award. The driver with the fastest laps at the end of the season gets the Fastest Lap award, and the team that can achieve the quickest pit stops throughout the championship gets the fastest pit stop award.
In 2021, Formula One decided to expand its multi-year partnership with DHL with hopes of continuing the long-standing relationship the two entities have developed. The extended partnership between DHL and Formula One brought numerous benefits. DHL remains the official logistics partner of Formula One, and as per the agreement, the DHL trackside branding will witness an increase.
Read more about how much DHL pays to sponsor Formula 1.
Another long-term partnership is between Emirates, the world’s largest international airline, and Formula One. Emirates has been at the forefront of sports partnerships globally and has been a Global Partner of Formula One since 2013.
The Fly Emirates branding had been featured visibly on the track at most Formula One races across Europe, Asia, Australasia, North America, and South America. Partnering with Formula One helps Emirates in numerous ways and helps elevate their income by a significant proportion.
The partnership between the airline and Formula One ensures that the airline can connect with potential customers who frequently choose to attend Formula One races. Emirates can market its services internationally, which helps them increase its revenue by quite a margin. In 2018, Emirates and Formula One expanded and renewed their agreement.
As per the new agreement, the leading airline will have access to increased branding, and their presence will increase significantly over fifteen races. The extended contract also makes Emirates the Title Sponsor of the Spanish Grand Prix and the title sponsor for the German Grand Prix. The agreement will last till the end of 2022.
Until the end of 2022, as a global partner, Emirates will enjoy various benefits. According to the new terms, Emirates will have extensive trackside branding at Formula One races, interactive fan engagement activities at Formula One fan zones, and Formula One festivals at specific races and branding across digital media assets.
Emirates will also be able to provide its Skywards members with the opportunity to use their miles to bid for VIP experiences at specific Formula One races. The airline flies to over 155 destinations and can connect fans of Formula one to the vast majority of countries that host races.
After extending the contract, Emirates also decided to change its branding from Fly Emirates to Fly better, which is featured prominently on race tracks across Europe, Asia, Australasia, North America, and South America.
Although the figure Emirates pays is still not confirmed, the deal between Formula One and Emirates is worth around $200 million, and the airline will sponsor 15 races annually.
Read more about how much Emirates pays to sponsor Formula 1.
In 2016, the Dutch brewing company Heineken announced a multi-year partnership with the thrilling sport Formula One. The agreement between the two renowned entities allows Heikenen to join Formula One as a title sponsor for several Formula One races and also labels Heineken as the official global beer partner.
The dutch brewing company Heineken is regarded as one of the biggest sponsors of Formula One and is a renowned brand when the question of beer arises. Their products are available in 192 countries, and the company keeps expanding with every year that passes. Since Formula One races are scattered globally, having Heineken as a sponsor and partner makes complete sense.
Enjoying a Formula One race while enjoying a beer with friends is the ultimate combination for the vast majority of fans. Heineken serves as the title sponsor for Formula Ones Australian Grand Prix, which took place in April 2022. Since Heineken has been named the official title sponsor, the official title for the event will be the Formula Ones Heineken Australian Grand Prix 2022.
Heineken also aims to educate consumers about responsible alcohol consumption. The beer company aims to promote its ‘When You Drive, Never Drink’ campaign via its trackside branding, which is visible across the circuit. Additionally, the deal includes circuit branding, TV commercials, live fan experiences and events, and so on.
As an official partner of Formula One, Heineken is renowned for helping celebrate and amplify the joyful moments in the sport. The most significant advantage of being a title partner of Formula One races is the exposure the sponsor gets via TV broadcasts. Heineken signed a 337 dollar million deal with Formula One.
Read more about how much Heineken pays to sponsor Formula 1.
Pirelli is a company that excels in its field. The company has been manufacturing tires for decades. The company has been an integral part of motorsport since 1997. It is obvious why this company has partnered up with Formula One. Tires play a vital role in motor racing. Established in 1872, this company is among the world’s leading tire producers, and they have managed to upkeep their reputation.
The company is renowned for developing high-value tires using advanced technology. Since the Italian-based company has single-handedly dominated the tire manufacturing field, Pirelli has been the exclusive official tire partner of Formula one since 2011. You may often witness the crew changing the racing car’s tires during a race.
A huge amount of tires are changed, which directly implies that the amount of tires required for a Formula One season is a lot. The tire company pays F1 for the rights to be the sole provider of the tires for all the teams. The tire company can increase its revenue as they are associated with such a thrilling sport, which revolves around tires.
In 2018, the tire manufacturing company extended its partnership with Formula One. The agreement will expire in 2023.
Due to new technical regulations, The International Automobile Federation (FIA) and Formula One agreed to sign a one-year extension for Pirelli.
The extension implies that the contract will expire in 2024. However, as per most sources, the contract between Formula One and Pirelli is bound to extend for a few more years. Pirelli pays Formula one approximately 110 million dollars.
Read more about how much Pirelli pays to sponsor Formula 1.
2022 was the year that marked ten years of Rolex’s partnership with Formula One. Rolex, a renowned watchmaking company, was welcomed by Formula One in 2012. Timing is of utmost importance in Formula One, as races may be won by merely a hundredth of a second.
Rolex has always been prominent in numerous sporting arenas. The Swiss watchmaking company was previously the title sponsor until 2020 and presently is a global partner, official timekeeper, and official timepiece of Formula One. Recently, Rolex has been welcomed back as a title partner for the Formula One Australian Grand Prix in 2023. This event will take place in April and will comprise twenty-four races.
Rolex partners Formula One through each era of change and provides fans with the ultimate. At every Grand Prix, the Rolex Pit Lane Clock serves as a visual reminder about the importance of timing. Rolex gives the time in different locations during each Formula One race.
According to the agreement, the Rolex branding must be positioned around the circuit and at several corners during Formula One races. Rolex pays Formula One $45 million in annual fees.
Read more about how much Rolex pays to sponsor Formula 1.
Unlike the partnerships we mentioned above, this is a relatively newer partnership. MSC Cruises was named a Global Partner for the 2022 Formula One season and serves as the Offical Cruise Partner. MSC Cruises is the third-largest cruise brand in the world and has been committed to achieving net zero emissions.
This multi-year deal will allow Formula One to display MSC cruise’s most technologically advanced ships during selected races. By doing so, MSC cruise can drive global visibility for its brand. In addition to that, trackside branding will be visible, which will provide the Swiss company with additional visibility.
The financial details and the length of the partnership are yet to be revealed to the general public. However, as per sources, deals of this sort tend to range from 20 million to 30 million dollars.
The partnership between MSC Cruises and Formula One aims to focus on sustainability. This is because both companies have decided to become Net-zero carbon and have been working on developing environmental technologies that could transform this dream into reality.
The partnership between these two world-class brands gives MSC cruises the ideal opportunity to showcase its quality holidays at sea and promote its services. MSC ships sail to over a hundred countries globally and host guests from more than 185 different nationalities!
Read more about how much MSC Cruises pays to sponsor Formula 1.
Formula One and SalesForce combined forces in 2022 and signed a five-year contract worth 130 million dollars annually. SalesForce, a global leader in customer relationship management, joined Formula One as a global partner. Formula One and SalesForce work closely together to grow fan engagement.
The two companies also share a mutual interest – to reach net zero emissions by 2030. SalesForce has already been able to achieve net zero emissions. Formula One works with SalesForce to gain insights from Formula One’s carbon footprint. Formula One and SalesForce will work towards expanding their already growing fanbase.
Salesforce will help Formula One by providing insight into the current fanbase of Formula One. SalesForce will help Formula One understand the F1 global fan base and provide them with strategies to boost their fanbase like never before. However, the multi-year deal between the two brands does not stop at a deeper insight into the fanbase of Formula One.
The partnership will also focus on developing unique experiences solely for Formula One fans. For instance, new broadcast graphics, trackside signage, visual content, and hospitality at Formula One races.
Through this partnership, Formula One will enjoy an engaged fanbase. Read more about how much Salesforce pays to sponsor Formula 1.
AWS (Amazon Web Services)
Have you ever noticed race performance statistics show up during a Formula One race? This phenomenon is made possible by AWS. AWS and Formula One share a mutual interest – to build upon the fan experience by incorporating technological innovation.
Since 2018, Formula One and Amazon Web Services have been working together by using AWS machine learning. Amazon Web Services is responsible for providing car performance and competitor insights to fans.
With the critical statistics that AWS provides, Formula One can analyze the statistics to make predictions about Formula One races. By broadcasting these statistics on live television, the fan experience is enhanced.
The statistics AWS provides allow fans to comprehend how drivers make split-second decisions and how formula one teams implement race strategies that have a crucial impact on the overall outcome.
In 2022, Formula One and Amazon Web Services renewed this partnership. The exact figure AWS pays formula one is yet to be known.
Read more about how much AWS (Amazon Web Services) pays to sponsor Formula 1.
BBS, a Japanese wheel manufacturing company, joined forces with Formula One in 2022. For the past few years, Formula One raced with thirteen-inch wheels. However, this changed in 2022. Formula One teams will now use only eighteen-inch wheels. The Japanese wheel provider is the ‘official wheel rim provider.’
Previously, all the teams were permitted to source their wheels from wherever they desired. As per the agreement, all ten teams now use the same tires that BBS manufactures.
The contract between BBS Japan and Formula One is a four-year contract. The amount BBS motorsport pays Formula One annually is yet to be released.
Ferrari Trento, an Italian sparkling wine-producing company, has been affiliated with Formula One since 2021. The taste of winning a Formula One race equates to sparkling wine. Ferrari Trento has been chosen as an official partner by Formula One for numerous reasons.
The Italian sparkling wine company has won several awards for its world-class wineries, and Formula One decided that Ferrari Trento was the optimum fit due to its rich history.
A two-year extension has been signed recently between Formula One and Ferarri Trento. The services of Ferrari Trento do not stop at presenting podium bubbles at Formula One racers. Ferrari has launched numerous initiatives that have appealed to motor racing fans globally.
The ‘Ferrari F1 Podium Jeroboam’ is the bottle that celebrates the drivers that win with a podium finish. The bottle is signed by the top three winners when the event ends. The bottle is auctioned for charity.
The partnership between Formula One and Ferrari Trento will last till the end of 2025. Until 2025, Ferrari Trento will continue to play a crucial part in elevating joy and celebrating podium finishes.
According to sources, the deal between Formula One and Ferrari Trento is worth $2.5m per season.
Read more about how much Ferrari Trento pays to sponsor Formula 1.
Precision makes a winning difference in Formula One. Lenovo, the number one computer manufacturer globally, joined forces with Formula One ahead of the 2022 season to provide fans with the highest level of racing, where every millisecond matters. The multi-year deal worth $20m per year between Lenovo and Formula One will help Lenovo showcase its capabilities and help increase its global visibility.
As the partnership evolves, Lenovo’s technology will be used throughout the Formula One organization. The company’s technology will be used behind the scenes at Formula One and races. The high-performance computers and servers of the company will be used throughout all Formula One operations.
The use of its technology will help maximize speed and efficiency, which will help deliver a better experience for fans of Formula One. In recent years, Lenovo’s presence in sports has increased. Lenovo’s new deal with F1 includes title sponsorship for two races – British Grand Prix and French Grand Prix.
From running powerful on-premises data collection solutions via Lenovo’s cutting-edge technology to producing high-quality content that ultimately supports broadcast applications, the collaboration between the two brands will undoubtedly result in a better experience for fans.
Read more about how much Lenovo pays to sponsor Formula 1.
When the question of motorsport arises, several components are essential to ensure that the cars run smoothly. Liqui Moly provides a range of automotive chemicals. These include motor oils and additives, greases and pastes, sprays and car care, glues and sealants
Liqui Moly, a German Oil manufacturer, signed a three-year sponsorship contract with Formula One in 2019. This contract was revised at the beginning of 2020 and will expire at the end of the 2022 season. Liqui Moly is an oil and additive manufacturer.
The agreement between the most popular motorsport series and the renowned vehicle care company poses many benefits.
Liqui Moly has the opportunity to increase its recognition via track signage at eleven Formula One races and the ability to promote its sponsorship globally. This sponsorship campaign cost Liqui Moly several million euros.
In 2021, Formula One announced its partnership with Zoom Video Communications. The brands had previously collaborated in 2020 on the virtual Padlock experience.
As part of the partnership between Zoom and Formula One, Zoom aims to deliver its communication services and is working with Zoom to provide business, employment, and hospitality opportunities through the use of sports experiences.
The virtual paddock club is bound to continue again. In the 2021 season, the guests had the opportunity to join the Virtual Paddock Cub in 21 races. The virtual paddock club allowed fans to experience virtual hospitality offerings, live updates, and so on. Formula One guests, global partners, and Formula one teams can enjoy an exclusive experience, onsite and virtually.
Zoom video communications are also the unified communication platform of Formula One and help the organization achieve its sustainability goals. Zoom is also actively working towards helping Formula One reduce its carbon emissions by engaging in virtual meetings.
Other than partnering with Formula One, Zoom has also been expanding its presence in Formula one by signing a sponsorship deal with Red Bull Racing.
The exact figure Zoom pays Formula One annually has not been revealed yet. However, there is no doubt that the amount exceeds a million dollars.
188Bet signed a five-year agreement with Formula One and is the Official Asian Sponsor of Formula one. The gambling website offers betting in numerous languages and on products that include Sports, eSports, Progressive Slots, Casinos, Poker, and so on.
The online gambling operator will have exclusive ownership of Formula One Play. Formula One play is a renowned predictor app for the Asia Sports Betting Market. 188Bet will receive official F1 betting data from Sportradar.
According to the terms of the sponsorship, 188BET’s branding will appear on the virtual trackside advertising for the races that are broadcast.
The sponsorship contract will conclude in 2024. 188BET also pays a couple of million dollars annually to Formula One.
WorkDay and Formula One signed a multi-year partnership in 2021. Workday, a leader in enterprise cloud applications for human resources and finance, serves as the regional finance and enterprise partner of Formula One.
WorkDay will be granted the opportunity to reach Formula One’s huge fanbase through digital, social, and content platforms by using Formula One assets throughout the season.
Additionally, Workday will enjoy global publicity through trackside and pit lane signage across several European Grand Prix.
The agreement covers Africa, the Middle East, and Europe and extends Workday’s existing partnership to sponsor the Formula 1 European Tour. Workday also pays Formula several million dollars.
Drive Coffee has emerged as one of the premier coffee roasters globally due to its commitment to delivering premium quality with sustainable sourcing and the finest customer service.
The Colorado-based company is scattered globally and joined forces with Formula One in 2021. The multi-year partnership between Drive Coffee and Formula One means that Drive Coffee will be served at each Formula One race, including the F1 paddock club and Paddock areas.
However, Drive Coffee’s presence does not stop at on-site presence. Drive coffee has also released a line of F1 branded coffee products that may be purchased from departmental stores globally.
The figure Drive Coffee pays Formula One has not been revealed yet.
Cybersecurity is the backbone of any industry or sport. Similarly, cyber security is essential in the world of Formula One. Hervajec was announced as Formula One’s Official Cyber Security Services Partner in 2021.
Hervajec has a rich history of protecting businesses globally from potential cyber threats and uses its remote cloud operations to prevent security threats to Formula One.
Hervajec will provide Security Services, including cyber analysis and threat intelligence. Additionally, the company provides round-the-clock expertise to detect emerging threats that target the infrastructure of Formula One. Hervajec pays Formula One several million dollars per year.
AlphaTauri, a premium brand founded by Redbull, recently joined forces with Formula One in 2022. AlphaTauri is presently the Official Premium Fashion Apparel Supplier of Formula One.
The company is responsible for dressing the Formula One team, which includes the staff and presenters. AlphaTauri pays Formula One several million dollars per year.
Frequently asked questions
Do sponsors make money in F1?
Yes! Sponsors at Formula One can earn a significant amount of money through sponsorships. Formula One is a sport that provides companies and brands with the optimum opportunity to grow their platform through sponsorship.
Formula One has a global TV audience of around 1.9 million annually. This means that publicizing your brand and eventually increasing your revenue is no difficult task.
Who is the biggest sponsor in F1?
Petronas has spent 735 million dollars on Formula 1 in the past decade. Petronas sponsors the Mercedes formula one team.
Can alcohol sponsor F1?
Yes, alcohol can sponsor F1. However, alcohol sponsorships are banned in several countries. Some countries have rose water at podium finishes instead of alcohol because alcohol advertising is prohibited at selected races, such as those in Bahrain and Abu Dhabi.
Why do F1 teams need sponsors?
A medium through which most teams earn is via sponsorships. Due to this, sponsorships are vital for the success of F1 teams. As you can imagine, there is no doubt that to sponsor an F1 team, being able to afford to deposit a handsome amount of money is a must. It costs more than 100,000 dollars to sponsor a formula one team. Whereas some sponsors even pay more than 20 million!
Numerous brands, such as DHL, Emirates, and Zoom, have partnered up with Formula One. They extend their services in exchange for the glory of being associated with Formula One.
Formula One partners work closely together to ensure that fans are able to enjoy the ultimate Formula One experience. You may have realized how important sponsors are and the hefty amount a sponsor and partner of formula one is required to pay!
However, the amount a brand deposits ends up being worth it, as Formula One is a sport viewed by fans globally.