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Sponsorship in motor racing: the biggest contracts

Sponsorship in motor racing: the biggest contracts

Posted on July 11, 2025 By rehan.rafique No Comments on Sponsorship in motor racing: the biggest contracts

Car racing is one of the most dynamic and exciting sports, attracting millions of fans around the world. At the same time, this sport requires significant financial investment to support teams, develop technology, and organize competitions. That is why sponsorship plays a key role in the development of car racing. Thanks to sponsors, teams receive the necessary resources to participate in top-level competitions, and fans have the opportunity to enjoy watching the best drivers in the world. Even popular offers such as the 5€ no deposit bonus in the world of gambling are an example of how marketing and sponsorship intertwine to attract new audiences.

The history of sponsorship in motor racing

The first motor races in history were financed mainly by enthusiasts, car clubs, and the manufacturers themselves. However, as the popularity of racing grew, commercial sponsors began to appear.

The real breakthrough came in 1968, when the Lotus Formula 1 team became the first to officially sign a sponsor from outside the automotive industry — the tobacco company Gold Leaf. This was a turning point: for the first time, cars were adorned with commercial advertising rather than car manufacturer logos.

Since then, sponsorship has become an integral part of motorsport. In the 1970s and 1980s, sponsorship gradually evolved from simple advertising to strategic partnerships. Companies invested not only in the presence of their logo, but also in marketing, PR, and event support.

In the 1990s, big global brands came to the fore: Marlboro, Shell, Vodafone, Red Bull, and Petronas. Sponsorship contracts became comprehensive agreements covering TV advertising, merchandising, fan engagement, and global brand positioning. Sponsors also began to influence the choice of drivers (through personal contracts), car livery, driver uniforms, and even the organization of competitions (e.g., the Red Bull Ring in Austria).

With the development of digital technologies and social media, sponsorship in motorsport has reached a new level. Brands now have the opportunity to interact directly with fans, promote their products through streams, integrations in video games (F1 24, Gran Turismo, Forza) and even through virtual tournaments.

Technologies such as telemetry, data analytics, and augmented reality allow brands to more accurately assess the effectiveness of their investments. Teams, in turn, can report in detail to their partners on reach, conversions, and audience response. In addition, marketing has become more targeted and personalized — for example, sponsors create exclusive content for different countries or language audiences, launch limited-edition merchandise collections, or run digital promotions such as “€5 no deposit bonus” in partner online campaigns.

Types of sponsorship in auto racing

Auto racing is not just a competition on the track, but also a field for a complex business game in which sponsorship plays a key role. Thanks to the multi-level partnership structure, companies can choose the most effective format of cooperation depending on their budget, goals, and target audience. Below we look at the main types of sponsorship used in the world of motor racing.

1. Title sponsors of teams and competitions, the most prestigious and expensive form of partnership. The sponsor’s name is included in the official name of the team or event, which automatically increases brand awareness among millions of fans. Examples:

• Oracle Red Bull Racing — Oracle not only puts its name in the team name, but also provides cloud computing for analytics.

• Petronas Mercedes-AMG — Petronas supplies lubricants and fuel, and also funds research into engine efficiency.

What the sponsor gets:

• Strategic placement of the logo on the car, drivers’ uniforms, and in the garages.

• Presence in all official media materials, broadcasts, and press conferences.

• Opportunity to hold activations for customers and partners (VIP areas, exclusive events, etc.).

2. Technical and supply sponsors, companies play an equally important role, as they provide teams with resources, technologies, or specialized services. Their contribution is not always monetary — often it is intellectual property or high-tech solutions. Examples:

• Shell & Ferrari — Shell tests innovative fuels directly in Formula 1 racing conditions.

• Pirelli & F1 — official tire supplier for all teams.

• AWS & F1 — data analytics, telemetry visualization, broadcast support.

Benefits for the sponsor:

• The opportunity to showcase innovative products in the most challenging conditions.

• Recognition as a reliable, technology-driven brand.

• The right to use the “developed for motorsport” label in advertising.

3. Personal sponsors of drivers. Modern motorsport is also a cult of personality. Drivers become brands, and sponsors become partners in their personal PR. Examples:

• Richard Mille & Charles Leclerc — the luxury watch brand has created special models dedicated to the Ferrari driver.

• Monster Energy & Valentino Rossi — Monster has become an integral part of the image of the Italian MotoGP legend.

Formats of support:

• Financing through image contracts.

• Clothing, accessories, and helmets with brand logos.

• Participation of the driver in advertising campaigns, presentations, social media.

The value of such a partnership: an emotional connection with fans, direct influence through the driver as the “face of the brand.”

4. Local and regional sponsorship agreements. Not all brands strive for global reach. Some focus on specific regions where the market is most relevant to them. Examples:

• Heineken in Europe — title sponsor of the European stages of Formula 1, including the Dutch GP.

• Partner online casinos — local advertising campaigns in countries where gambling is permitted (e.g., the “€5 no deposit bonus” offer in EU countries).

Benefits for the brand:

• Precise target audience without excessive costs.

• Adapted advertising messages — linguistically, culturally, and thematically.

• The ability to launch short-term promotions for specific events (e.g., the Grand Prix in Spain or Italy).

For teams or organizers: this is a way to attract additional funding without changing the global style.

The biggest sponsorship deals in motor racing

Formula 1 (F1): key sponsors and contract values. The most prestigious and commercially lucrative motor racing series in the world. Sponsorship deals here often run into hundreds of millions of dollars and become strategic alliances between technology corporations and racing teams.

• Oracle & Red Bull Racing in 2022 Oracle signed a five-year agreement with Red Bull for approximately $500 million ($100 million per year). This is not just logo placement, but also the full integration of Oracle Cloud into data analysis, race simulation, and telemetry processes.

• Petronas & Mercedes-AMG, a partnership that has been ongoing since 2010 and includes fuel and lubricant supply, technological cooperation, and global promotion. The annual contribution is approximately $75 million, making it one of the most expensive and stable sponsorships in F1.

• Aramco & Formula 1 (world series), a global contract with the Formula 1 series itself. Aramco has title rights to several Grand Prix races (e.g., Saudi Arabian GP), logos on the tracks, and access to innovative initiatives. The contract is estimated to be worth $45–50 million per year.

Other top partners:

• Rolex — official timekeeper of F1, present since 2013.

• Heineken — title partner of several Grand Prix races and an active participant in PR campaigns, including responsible alcohol consumption.

• AWS — provider of cloud solutions for visualizing race analytics.

• Pirelli is the exclusive tire supplier with a long-term contract.

• Emirates, DHL, Lenovo, and Qatar Airways are global logistics, IT, and travel partners.

The budget for major contracts in F1 ranges from $10 million to $100+ million per year, depending on the scale of the partnership.

NASCAR: top deals and brands

The American NASCAR racing series has a different approach: it focuses on the US domestic market and attracts brands that want to communicate with an American audience. FMCG companies, energy drinks, automotive and logistics corporations are particularly popular.

• Monster Energy & NASCAR Cup Series (2017–2019) was the title sponsor of NASCAR’s top series. The contract was valued at $20–30 million per year and was part of the brand’s large-scale youth strategy.

FedEx & Joe Gibbs Racing is one of the longest individual sponsorship contracts. FedEx has supported driver Denny Hamlin for over 15 years. The agreement includes a logo on the car, participation in PR, corporate programs, and integration into FedEx’s internal campaigns. Xfinity (Comcast) is the title sponsor of the NASCAR Xfinity Series (the second-highest category in NASCAR). The contract is estimated at $10–15 million annually. Coca-Cola, Busch Beer, Chevrolet, and Goodyear are brands that either have a long history in NASCAR or regularly appear in race names:

For example, Coca-Cola 600, Busch Light Clash, and Geico 500.

Other popular series: WRC, IndyCar, MotoGP

Despite smaller budgets, these series have high fan loyalty and a valuable niche audience. Sponsors here often seek effective coverage in specific regions or among fans of technology, motorsports, and adventure racing.

WRC (World Rally Championship)

• Red Bull is the series’ main visual and financial partner and actively supports individual teams (e.g., M-Sport).

• Toyota & Denso are key technology partners of Toyota Gazoo Racing. The cost of sponsorship is not disclosed, but estimates range from $10–15 million per year.

IndyCar

• NTT (Nippon Telegraph and Telephone) is the title partner of the NTT IndyCar Series with an annual contribution of $10–12 million.

• Gainbridge & Andretti Autosport is a strategic partnership aimed at supporting young drivers, track activation, and social initiatives.

MotoGP

• Repsol & Honda — one of the longest-running partnerships in motorsport. The agreement includes the supply of fuel, lubricants, and visual integration. Estimated value: $15–20 million per year.

• Monster Energy, Michelin, Lenovo, and Tissot are permanent MotoGP sponsors, appearing in general broadcasts as well as on specific motorcycles and events.

Examples of the most famous sponsorship deals

Some sponsorship contracts have become not only a source of funding for teams, but also part of the visual and cultural heritage of motor racing. Partnerships that last for decades are often associated with specific eras, drivers, or even victories on the track.

McLaren & Vodafone (2007–2013)

One of the most powerful marketing partnerships in Formula 1. Vodafone became McLaren’s title sponsor in 2007, paying an estimated $50–75 million per year. The visually striking silver and red cars became iconic. It was during this partnership that Lewis Hamilton won his first world title (2008).

Mercedes & Petronas (since 2010)

Malaysian energy company Petronas became a key partner of Mercedes even before the team began to dominate Formula 1. This is one of the longest and most strategically important contracts in modern motorsport. The deal is worth an estimated $75–80 million per year and includes both title sponsorship and technical cooperation (fuel and lubricant development). It was with Petronas that Mercedes won eight consecutive constructors’ championships (2014–2021).

Ferrari and Shell The partnership between Ferrari and Shell has been in place since 1929 (!), officially since the creation of Scuderia Ferrari. Shell not only provides sponsorship support but also supplies fuel, lubricants, and data analytics technologies. According to financial reports, Shell invests up to $40 million in Ferrari annually and also funds research projects in sustainable technologies. This alliance has a strong cultural significance: the Shell logo is a permanent feature on the red cars, and the brand is actively used by Ferrari in its global operations.

How sponsorship affects teams and drivers

In modern motorsport, sponsorship is not just a source of income — it is the foundation without which most teams would not be able to exist. From financing cars and salaries to building a global image and interacting with fans, sponsorship contracts affect virtually every aspect of racing.

In top motorsport series, team budgets can reach hundreds of millions of dollars per season. Sponsorship often covers a significant portion of these costs, including:

• Car development, new technologies, aerodynamic upgrades, wind tunnel testing.

• Logistics and personnel, equipment transportation, technical team, engineers, stewards.

• Driver salaries: top drivers such as Lewis Hamilton and Max Verstappen earn tens of millions per year.

• Support for junior programs: sponsorship money is often directed toward developing young talent.

Without enough sponsors, many mid-level teams would not be able to compete or would be forced to limit their programs.

A team or driver with a big brand sponsor immediately receives additional attention from the media and fans. The role of marketing is growing, and collaboration with a well-known partner can significantly change the perception of a team around the world. Examples of influence:

• Red Bull Racing is actively building an image of a young, dynamic team thanks to the powerful Red Bull brand.

• Ferrari & Shell — an alliance that embodies tradition, speed, and reliability. It has been used in many Shell advertising campaigns.

• In series such as NASCAR, where fans are very loyal to the brands on the cars, sponsorship directly influences purchasing behavior.

Sponsorship also provides access to:

• mass events;

• advertising during broadcasts;

• unique content: behind-the-scenes videos, interviews, blog series;

• launch of bonus promotions (for example, a €5 no deposit bonus from partner online platforms for motorsport fans).

Advantages and challenges for drivers and management

Advantages

1. Increased income

Top drivers earn a significant portion of their income not only from team salaries, but also from individual advertising contracts with brands. These agreements may include fees for filming commercials, participating in marketing campaigns, and placing logos on personal items (helmets, equipment).

2. Improved image

Collaboration with prestigious brands raises a driver’s status among both fans and the professional community. Partnerships with luxury brands such as watch companies Richard Mille or Tag Heuer not only highlight success but also open doors to new social circles and opportunities.

3. Opportunities for personal initiatives

Thanks to financial support from sponsors, pilots can launch their own social projects, engage in charity work, or develop business ventures related to sports or other fields.

Challenges

1. High expectations

Sponsors invest significant funds and therefore expect pilots to not only achieve high sporting results but also maintain an active media presence. Failure on the track or poor communication with fans can lead to disappointment among partners and even premature termination of the contract.

2. Off-track commitments

Drivers have to participate in numerous events: advertising shoots, press conferences, corporate events, autograph sessions. This takes time and energy that could be spent on training or recovery.

3. Dependence on sponsor policy

Brands can change their values, strategies, or even their stance on specific public issues. If a driver or team disagrees with a new policy, it can lead to conflicts and even contract termination.

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