Formula One deals make up nine of the top ten deals by value per season across Formula One, Formula E and MotoGP. The only deal outside Formula One to make it into the top ten is Formula E’s series title deal with Swiss technology and electronic equipment brand ABB.
In terms of central deals, Formula One accounts for nearly two thirds of the combined value of $262m per season generated by the three series. Formula E has a significant advantage over MotoGP in volume of central deals resulting in a greater total.
However, the median value for deals across both central and team title deals sees MotoGP coming out slightly ahead. MotoGP team title deals range from $2.8m to $16.8m per season, compared with Formula E title deals that range from $0.6m to $10.1m per season.
The Formula E team deal median however is skewed by the title deal made by Envision Racing with the Virgin group, which SportBusiness Sponsorship understands was renewed for a nominal fee to keep the attractive Virgin brand in the team name composite.
Formula One team title deals are by far the most valuable in the sport. The top title deals in Formula E and MotoGP are now at around the same level as the lowest team deals in Formula One. In terms of central deals, Formula One is still the market leader, however Formula E has closed the gap with its $25m-per-season title deal with ABB. MotoGP central deals are of a similar annual value to Formula E, excluding the ABB title deal, however Formula E has a greater volume of partners.
Red Bull has title deals in both Formula 1 and MotoGP, where it invests over $230m per year across Red Bull Racing, Toro Rosso and Red Bull KTM Factory Racing. Petronas also has team title deals in both Formula One and MotoGP with Mercedes-AMG Petronas Motorsport and Petronas Yamaha SRT. Logistics brand DHL is the only brand with central deals across all three motorsports, with its Formula One deal by far the largest investment.
The FMCG sector is the highest-value sector in both Formula One and MotoGP. Red Bull and Phillip Morris International account for the majority of this in Formula One because of team title deals. Formula E’s most-valuable sectors are predominantly business-to-business based although this will be expected to shift towards more business-to-consumer brands in the future as the series increases its fan base.
Phillip Morris International’s (PMI) sponsorship of Scuderia Ferrari is the biggest deal in motorsports of 2019. The four-year agreement, from 2018 to 2021, is understood to be worth about $180m per season.
In its previous deal, from 2015 to 2017, PMI paid about $160m per season, with the option to sell branding rights back to Ferrari if other partners wanted to come on board.
Telco brand ROKiT signed a title deal with Williams in February, worth between $11.2m and $13.5m per season, taking over the title rights held by Martini from 2014 to 2018.
Carmaker Alfa Romeo expanded its $15m-per-season title deal with the Alfa Romeo Sauber F1 Team – as the team was known last season – to rebrand the team as Alfa Romeo Racing for an additional $5m per year.
Kenyan bookmaker SportPesa signed a cut-price deal as title sponsor of Racing Point, paying $8m in year one and $12m in year two. This falls below the $15m per year paid by Racing Point’s Principal Partner BWT (Best Water Technology).