WILMETTE, Ill. — The business of sports relies on multiple revenue streams, and the trend lines have now stabilized from the shut-down lows of 2020.
This month, we examine the current state of racing sponsorships.
Sponsorship of auto racing is increasing faster than other top-level leagues. It remains a desirable activity for those entities looking to interact with fans and fuel business performance.
There has been double-digit growth in the number of brands purchasing motorsports sponsorships or media. The number of entities supporting racing on the track or with commitments to series, teams and drivers are one quarter of all other sports leagues combined.
The success of Formula 1 cannot be understated. It’s global reach and the buzz of the “Drive to Survive” docuseries on Netflix has been monumental. A strategic expansion to new markets with innovative events brought new partners and developed new fans.
The metrics are led by record viewership and surging social media engagement. F-1’s parent company, Liberty Media, has posted a strong financial performance and stock price.
There is an interesting difference between the type of entities supporting the international series, such as Formula 1, compared to the sponsors doing business in domestic series the likes of the NTT IndyCar Series and the NASCAR Cup Series.
The range of companies outside the automotive space involved with Formula 1 is deep. These non-endemic brands reflect the global series’ ability to connect with its passionate fan base. The series is using its worldwide geographic reach as a strategic marketing advantage.
The involvement of auto manufacturers in U.S.-based racing is at the foundation of its economic model. The slogan “Win on Sunday, Sell on Monday” was key to its spending on the sport. Investment through research and development, track and series entitlement sponsorship and team and driver support are proof of this concept.
Beyond this brand sector, insurance, manufacturing, health care, financial and restaurants are the fastest growing categories of motorsports sponsorship.
Race car drivers average twice as many sponsorship deals when compared to other pro athletes. This may not be considered unusual since the cars and fire suits are covered in logos. Traditional stick-and-ball uniforms are just starting to sell jersey patches.
Athletes as a business has become the norm for both professionals and amateurs. Developing the brand off the field of play takes work. but the result is a direct connection to the fans, and this leads to sales of merchandise and memorabilia.
Motorsports continues to shift into high gear by showcasing its vast array of sponsorship opportunities.
This story appeared in the June 28, 2023 edition of the SPEED SPORT Insider.
