Core Value Of F1 On The Rise As Passion Continues To Drive Sponsorship
Despite this, the value of the core Formula 1 franchise "continues to grow," with F1 valued at nearly £5B in stake sales three years ago and projected to post operating income of £290M ($450M) this year.
Corporate sponsors "find its global reach appealing." In the 11 years since Red Bull began its involvement in F1, "its worldwide revenues have more than doubled" from £1.58B to £3.56B ($5.52B).
Infiniti, the Nissan car brand that sponsors the "successful" Red Bull F1 team, has also grown "on the back of the exposure that the deal offers."
Meanwhile, F1 has signed deals in recent years with Emirates airline, watch manufacturer Rolex and communications firm Tata. In total, more than 300 brands sponsor F1, spending almost £1B ($1.55B) annually. So "what is the case for investing in motor sports?"
HSBC spent $18M to sponsor Shanghai's first Grand Prix in '14. HSBC Global Head of Sponsorship Giles Morgan said, "The financial services sector is probably the biggest investor in the sports sponsorship sector globally because all of us are trying to reach out to everyday people with their passions. The key to it is then about segmenting and understanding what are the passions of the people that you're trying to target." Telegraph