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Tough for gaining new F1 Sponsors

Discussion in 'F1' started by DF1, Dec 13, 2019.

  1. DF1

    DF1 F1 World Champ
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    F1 CEO Chase Carey: Signing new major sponsors harder than expected

    Formula 1 CEO Chase Carey admits selling major sponsorship deals has been harder than expected, but insists there has been increased interest from potential partners in 2019.

    When Liberty Media took over as F1's commercial rights holder in early 2017, its management promised there would be more series sponsors, comparing F1's situation with the large number of companies affiliated to major US sports.

    But Liberty has not added to the core group of 'global partners' put together under Carey's predecessor Bernie Ecclestone, which is comprised of Heineken, DHL, Pirelli, Emirates and Rolex - although sources suggest that one major name is set to be announced for next season.

    Carey says Liberty started from "ground zero" in terms of having to build sponsor interest when it took over, but says F1 has "never been busier" in this regard despite the process being "slower and harder than I would have planned".

    "Our cupboard was pretty bare, because we didn't really have a sponsor group," Carey told Autosport.

    "We hadn't created any tools. We hadn't created capabilities to tell the story of F1, to create some excitement.

    "We have some momentum today. We've had attendance up, we've had viewership up - we've got a good story, we've got new dimensions to the sport.

    "And I think you need to tell that story, and you need to develop tools.

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    "Sponsors want partnerships that are more tailored uniquely to them. In the past, signs on a wall worked fine - that doesn't work now.

    "So we had to develop the array of initiatives, whether it's digital initiatives, regional feeds, virtual ads, fan festivals, all those types of opportunities to create tailored targeted opportunities."

    "The traction with interested sponsors has been on a steady rise - we've never been busier.

    "I've got a three-page back list of sponsors we're engaged with. Obviously, until the sponsors are signed, deals aren't done.

    "Certainly, I'd say we feel we have gotten progressively better as we've gone along.

    "So while it's been slower and harder than I would have planned it to be a couple of years ago, I think that in many ways is the nature of where we started, and we started really from ground zero."

    Despite a lack of major sponsorship deals, F1 reported a small gain in revenue in the second financial quarter of 2019 compared to the previous year, with total income up to $620million from $585m.

    Carey believes F1 "sells well", and is adamant that it stands as an attractive proposition for potential partners.

    "This is a sport that sells well, it's a unique sport with passionate fans, attractive fans," he said.

    "The sport differentiates from other sports - given its marriage to technology, given the nature of the sport, the global aspect of the sport.

    "At a point in time where events in a world that is increasingly 'commoditised' and fragmented, events that rise above are reasonably valued.

    "So I think the interest and engagement we have has been on a steady rise."

    https://www.autosport.com/f1/news/147607/carey-signing-new-f1-sponsors-harder-than-expected
     
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  3. zygomatic

    zygomatic F1 Rookie
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    "Sponsors want partnerships that are more tailored uniquely to them. In the past, signs on a wall worked fine - that doesn't work now."

    Translation: "Corporations are telling F1: I don't know who your audience is or how they are relevant to my business"
     
  4. DF1

    DF1 F1 World Champ
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    F1 lacks a focus and a future direction to gain that focus. Bernie sold at the perfect time to the the latest 'sucker' lol :)
     
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  5. william

    william F1 World Champ
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    Yep, Liberty keeps complaining about what they bought.
     
  6. Ferrari 308 GTB

    Ferrari 308 GTB F1 Veteran

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    Hey Chase

    Sex sells

    Bring back the Grid Girls for starters.
     
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  8. pilotoCS

    pilotoCS F1 Rookie
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    What? Are you saying being painfully politically correct is wrong? I'll have to ask Greta Thunberg what she thinks . . .
     
  9. A348W

    A348W Formula 3

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    “So we had to develop the array of initiatives, whether it's digital initiatives, regional feeds, virtual ads, fan festivals, all those types of opportunities to create tailored targeted opportunities."

    So what are these? I’ve not seen any of these, am I blind?
     
  10. Korr

    Korr F1 World Champ
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    Let's see here.

    Toyota couldn't find a primary sponsor.
    Honda couldn't find a primary sponsor.
    McLaren has no primary sponsor.
    Williams has no primary sponsor.
    Haas self sponsors.
    Force Canada will be self sponsoring when Papa Stroll buys into Aston Martin.

    The only teams that have sponsors are primarily self sponsored like Mercedes and Red Bull. Ferrari has no problem finding sponsors. No shock that the only three real teams on the grid self sponsor or have a unicorn sponsor.

    What makes Liberty think they could find anyone when larger and more experienced organizations couldn't?
     
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  11. kylec

    kylec F1 Rookie
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    I think they’re tangentially referring to the London and Los Angeles F1 Live type events.
     
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  13. Mitch Alsup

    Mitch Alsup F1 Veteran

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    Liberty has the ability to change the direction, focus, and ability to attract advertisers.
     
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  14. Simon^2

    Simon^2 F1 World Champ
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    #11 Simon^2, Dec 19, 2019
    Last edited: Dec 19, 2019
    They also have the ability to continue to run it into the ground.

    On a side note... I cancelled cable TV today. If I can stream F1, I might. F1 hasn't been worth my time for 5 years.

    Are any new fans coming in? Sure are a lot of older ones leaving. And when Louis retires,... will his fans stay? Not a chance.
     
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  15. Korr

    Korr F1 World Champ
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    The F1 subscription works pretty well. Cancelling is easy, too. I watched the 1st 3 races of this season and bailed.
     
  16. Korr

    Korr F1 World Champ
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    Liberty is probably pricing it like it is a premium product. They are going to have to wake up like Williams did and price it for what it is actually worth. No one is going to pay Lexus money for a Trabant.
     
  17. pilotoCS

    pilotoCS F1 Rookie
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  18. Korr

    Korr F1 World Champ
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    Thanks for reminding us how much F1 sucks now! I go cry now. :(
     
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  19. pilotoCS

    pilotoCS F1 Rookie
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    Why does this remind you that F1 "sucks now"? I don't get the connection . . .
     
  20. A348W

    A348W Formula 3

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    But we in the UK, probably one of the bigger fan bases, can’t have it as Bernie stitched us up with Sky for years and Liberty don’t seem to want to do anything about it.
     
  21. Isobel

    Isobel F1 Veteran
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    Perfect photo for the brochure with Mika pondering life outside Ferrari. ;).Korr’s correct, F1 today is often the static between a solid nap.
     
  22. Kiwi Nick

    Kiwi Nick Formula 3

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    My guess is that F1's followers do not represent a significant opportunity to advertisers looking for a 24-40-year-old fan. I will bet that F1 followers skew much older, and that's a big problem. The only major sponsor I see that breaks from that is Red Bull. But, I think that is is because of the interests of the owners of Red Bull.

    I'll bet that the vast number of posters on this site are older, if not much older, than 40, and have never had a Red Bull and never will.
     
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  23. AtSomePoint

    AtSomePoint Rookie

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    Bring back cigarettes and booze. Oh, and as mentioned previously, the grid girls too.
     
  24. Mitch Alsup

    Mitch Alsup F1 Veteran

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    I am a Lewis fan, and I developed such a dislike for Seb at RB that when he went to F, I still can not root for him.
    I was an F1 fan from about the time when "Grand Prix" the movie came out, to present, and see no reason not to persist.
    Niki was my hero when I was college age. Michael when he turned Ferrari around realizing that reliability is the key to championships.
    But I've been a driver fan for a long time, and not so much a manufacture fan.
    I like LeClerc, I might be able to stomach Max has he continues to improve and calm down.

    I miss the days when engines went boom is spectacular ways,
    And I miss the days when F1 engines sounded better than motorcycle engines (not HDs).
    I can appreciate the usefulness of having engines produce power at 50% thermal efficiencies--I just wish they sounded proper.
    Perhaps if they went to 1.0 litre engines and left them with 100Kg/hr flow rates, we would hear proper engines again.
     
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  25. SimCity3

    SimCity3 Formula 3

    Liberty really didn't realise what it was buying.

    Chase bangs on about having an absense of "tools" !

    Bernie would secure a lucrative new deal on the telephone or a handshake.

    Chase Carey and his team lacks the skillset to replicate the commercial success that Ecclestone delivered.
     
  26. pilotoCS

    pilotoCS F1 Rookie
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    You can't realistically compare the Bernie era to now without considering the rise and fall of tobacco sponsorship's and, just as importantly, the meteoric rise in cable and satellite TV sports broadcasting and corresponding viewership increases. All of that was on an upward curve back then. It was the perfect storm for a clever guy like Bernie. And that isn't even getting into the fact that the past two generations are not really the "car people" that previous generations were.
     
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  27. SimCity3

    SimCity3 Formula 3

    Bernie helped to create that perfect storm ;)
    And Tobacco brands have simply been replaced with fizzy drink brands.

    F1 enjoyed it's most successful period, commercially and audience reach, while on Free-To-Air terrestrial TV.
    Audacious brands with grid girls didn't hurt.
    Durex anyone ?

    Satellite platforms such as Sky have squeezed F1 into a diminutive cul-de-sac.
    Recorded highlights remain available on terrestrial.

    Liberty is doing its best to Disney-fie the sport. Doesn't seem to be working.
     
  28. Mitch Alsup

    Mitch Alsup F1 Veteran

    Nov 4, 2003
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    Compared to the pre-Liberty days:: I enjoy the race much more than having all the action take place while on comercial.
     

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