WILMETTE, Ill. — The sports business relies on multiple revenue streams, and trendlines have stabilized since the 2020 lows.
This month we examine the current state of race sponsorship.
Auto racing sponsorship is growing faster than other top leagues. It remains a desirable activity for businesses looking to engage with fans and increase business performance.
There has been double-digit growth in the number of brands buying motorsport sponsorship or media. The number of organizations that support racing at the circuit or with involvement in series, teams and drivers is a quarter of all other sports leagues combined.
A huge crowd watched the Miami Grand Prix Formula 1 race in early May. (Red Bull photo)
The success of Formula 1 should not be underestimated. The global reach and hype around Netflix’s Drive to Survive documentaries has been tremendous. A strategic expansion into new markets with innovative events brought new partners and new fans.
The metrics are based on record viewership and rising social media engagement. F-1’s parent company, Liberty Media, has reported strong financial performance and a strong share price.
There is an interesting difference between the type of companies that support international series like Formula 1 and the sponsors that do business in domestic series like the NTT IndyCar Series and the NASCAR Cup Series.
The spectrum of companies involved in Formula 1 outside the automotive industry is large. These non-endemic brands reflect the global series’ ability to connect with its passionate fan base. The series leverages its worldwide geographic reach as a strategic marketing advantage.
The involvement of automobile manufacturers in US racing is the basis of the economic model. The slogan “Win on Sunday, Sell on Monday” has been a driving force behind spending on esports. Investments in research and development, track and series sponsorship as well as team and driver support are proof of this concept.
Beyond this brand sector, insurance, manufacturing, healthcare, finance and restaurants are the fastest growing motorsport sponsorship categories.
On average, racers sign twice as many sponsorship deals as other professional athletes. That shouldn’t be unusual given that the cars and firefighting suits are covered in logos. Traditional bat and ball uniforms are just beginning to sell jersey patches.
Athletes as a company have become the norm for both professionals and amateurs. Developing the brand off the field takes work. However, the result is a direct connection to fans that leads to the sale of merchandise and memorabilia.
Motorsport continues to run at full speed and presents its extensive range of sponsorship opportunities.
This story appeared in the June 28, 2023 issue of SPEED SPORT Insiders.
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