Following the close of the 2021 Formula One (F1) season, a report has revealed the cost of sponsorship assets in the competition.
The report analysed figures from London-based sports marketing agency, RTR Sports, which showed the lowest figure a brand can expect to pay for an F1 team sponsorship is around $100,000, with the maximum being around $200 million.
Typically, the F1 team ownership positions are where the largest fees will be found, with Red Bull and Mercedes investing around $200 million for their teams.
This figure will drop off dramatically the further down the table of the competition, with the lower teams like Rokit and Williams bringing in around $30 million for their title sponsorships.
Since 2006, F1 sponsorship spends have dropped by around 40%, with some reporting this is due to the calls for the competition to increase its focus on sustainability, in addition to the financial crisis of 2007 which pulled major sponsors out of the sport when sponsorship spend reached its peak in 2006.
Leading the charge for the F1’s climate effect and a hope of a sustainable future are stars Lewis Hamilton and Sebastian Vettel, pushing for the competition to further its commitments as laid out in the plan to achieve a net zero carbon footprint by 2030 and transition to 100% renewable electricity at all F1 and team facilities.
Speaking to Wired, Hamilton said: “I’m having conversations, trying to hold people in the sport more accountable.”
“I’m constantly sending emails, I’m constantly on Zoom calls with Formula One and challenging them,” he said.
Elsewhere, Hamilton said the sport should achieve a net zero carbon footprint before 2030.
“F1 is only implementing it in 10 years’ time and I don’t fully understand why that doesn’t change sooner,” Hamilton said.
“These large corporations that have a lot of money and power behind them and can definitely make change happen quicker but it’s not their no.1 priority.
“Until there is a point where it is the no.1 priority for governments and for the world, then it’s going to continue to be a slow-burner,” he said.
Earlier in the year, Vettel told The New York Times: “If you look at the bigger picture, there’s a certain responsibility we have as Formula 1 when we go to different places in the world and we set up these huge events which bring massive excitement.”
“We cannot just go there, do our show, and then leave everything else behind.
“To ensure that nothing is left behind, we need to be ready to take a little bit of our margin off and invest into those things because they do come at a cost,” Vettel said.
According to the latest data from F1, in an entire season, the competition generates approximately 256,000 CO2 equivalent tonnes.
Among the latest commitments from F1 is to reveal a new, second-generation hybrid power unit by 2025 that will be carbon neutral and fuelled by sustainable fuel products.
F1 sporting director, Ross Brawn, recently spoke on the organisation’s efforts in pursuing sustainability, saying: “Every thinking person is concerned about climate change.”
“I am concerned about it, my engineers are concerned about it, it’s something we can’t ignore.
“It would be very rewarding for F1 to demonstrate the technology we can take forward to contribute to the reduction of greenhouse gases.
“We have a mantra, an F1 fan should be proud of being an F1 fan.
“That is not only about the excitement on track but showing that F1 can make a difference in society.
“We all genuinely feel that,” Brawn said.