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The Business of F1

The Business of F1

With F1 fever sweeping through the Emirates, Kipp takes a closer look at the money, mastery and the madness of Formula 1.


November 14, 2010 2:41 by

Before 1960, Grand Prix Cars used to run without any branding; it was just the national colours of the car and commercial sponsorship was illegal in Formula 1 until 1968. Since then, things have changed quite a bit. Sponsorship is big business and getting your name on one of the racing cars can cost as much as $50 million. Of course, the rate differs, with prices doubling, with the popularity of the team.  To be the title sponsor, placing one’s name on the body, could cost a company anything between $15-50 million; to be the co-sponsor, and be advertised on the nose cone of the car could set a company back by $3-15 million. For those with a less generous budget, they advertise on the car’s rear wings or mirrors for $1-3 million. Generally it is the suppliers to the industry or high-tech firms that choose to advertise on these parts.

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