American Express is in advanced discussions to become a second-tier Official Partner of Formula 1 as it closes in on a deal that would upgrade its existing regional sponsorship, SportBusiness understands.
It is understood that the two parties have agreed initial terms on a deal that includes global rights to the series. The two parties are thought to be working through the finer details of an expanded agreement, with an official announcement still expected to be months rather than weeks away.
Mastercard is thought to have explored a global partnership with F1 before ultimately finalising an agreement with McLaren Racing in a deal unveiled in July. The company also held talks with the Ferrari, Mercedes and Aston Martin teams before landing on McLaren, as reported by SportBusiness in April.
Although American Express hasn’t agreed a top-tier global deal, SportBusiness understands it is paying more than the prevailing rate for the Official Partner tier, due to fierce competition in the payment services category.
The financial and payment services categories are running hot in F1, with US multinational finance brand JP Morgan Chase having also held discussions with both Red Bull Racing and Williams Racing over the last 18 months. Visa and Cash App, meanwhile, became co-title sponsors of Red Bull Racing’s sister team, formerly known as AlphaTauri, ahead of the 2024 season.
The original regional deal between American Express and F1 was announced in October last year and made the brand the Official Payments Partner in the Americas. An expansion to include the all-women F1 Academy series was announced in April.
Via its regional agreement, the brand activated heavily at the Las Vegas Grand Prix last year, hosting cardholders on its own three-level grandstand, while its branding appeared on the Vegas Sphere landmark and along the wall of the straight in front of the grandstand. At this year’s Miami Grand Prix, it activated with a ‘Celebration of Women with Drive’ event for card members.
In rising to Official Partner level, American Express would join a five-strong group of brands which includes sparkling wine Ferrari Trento, technology companies Globant and Lenovo, automotive chemicals specialist Liqui Moly and streaming platform Paramount+.
It would leave behind a regional tier comprised of just three brands: 188Bet, McDonald’s and Workday.
Contacted by SportBusiness, Formula 1 declined to comment on discussions with American Express.