LOTUS F1 sponsorship and business partnership deal with Microsoft, which sees the software giant’s business solutions unit Microsoft Dynamics become the team's official “Business Transformation Partner”, has a significant cash and VIK deal structure, Frontloaded has learnt.
Microsoft Dynamics branding was unveiled at the Australian Grand Prix last weekend. Microsoft Dynamics featured prominently both on the Lotus F1 Team cars and the drivers’ overalls.
The three-year deal has a significant value-in-kind component, however there is also cash in the deal worth many millions of dollars per year.
As part of the business partnership, Microsoft Dynamics solutions will be implemented at the Lotus F1 Team’s UK base while Microsoft personnel will work directly with Lotus F1 Team to help optimise operations at the facility.
Microsoft Dynamics enterprise resource planning (ERP) technology is already used by the Formula One team to help manage thousands of separate components that make up the car, all of which need to be purchased and stored before they are used in the manufacturing process.
It is thought that Lotus F1 CEO Patrick Louis and chief commercial officer, Stephen Curnow, worked on the rights-holder side of the deal with Christian Pedersen, general manager, Microsoft Dynamics ERP Product Marketing and Hal Howard, corporate vice president, Microsoft Dynamics ERP Research and Development, representing the sponsor/ business partner.
Microsoft’s presence in sport has risen slowly from a low base in the last 18 months. Microsoft New Zealand was unveiled as an official sponsor of the Rugby World Cup last year and Microsoft will be an official supplier of the Sochi 2014 Winter Olympics.