20-21 The World of Moto#1F1.qxp

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Motorsport Formula One/Nascar
THE WORLD OF BUSINESS
DAYS
Teams have sought to offset this by
improving branding around the cockpit – another area to see an improvement in the share of branding it
receives.
Gibson said: “We’re increasingly
being asked to give more detail on the
sources of brand exposure, as well as
the duration and size of exposures,
year-on-year comparisons, and so on.”
The Hamilton effect alters sponsor league table
Vodafone supplants Marlboro as most visible sponsor
Vodafone has leapt to the top of the
Formula One band exposure league table
for the first time after seven years in the
sport. Vodafone climbed from sixth place in
the 2006 table to the top spot last year. As
McLaren title sponsor, the brand in 2007
enjoyed around three times the exposure
duration compared to its 2006 performance
France angrily denies
US$3 billion offer from CVC
with Ferrari. Four more McLaren sponsors
appear in the 2007 top 10, including
newcomer Aigo.
Marlboro was dislodged from last year’s
top spot to number two although with a
very similar exposure time to 2006. Whilst
McLaren Mercedes has five sponsors in the
top 10, Ferrari has only two.
The highest new entry is Renault title
F1 BRAND EXPOSURE REPORT 2007
BRAND
Vodafone
Marlboro
Mercedes-Benz
Shell
Bridgestone
Hugo Boss
Mobil 1
ING
Red Bull
Aigo
TEAM
McLaren
Ferrari
McLaren
Ferrari
Various
McLaren
McLaren
Renault
Various
McLaren
EXPOSURE
3h:58m:18s
3h:45m:42s
2h:19m:17s
1h:25m:33s
1h:16m:08s
1h:15m:51s
1h:14m:50s
1h:10m:36s
1h:04m:50s
0h:58m:43s
% SHARE
11.60%
10.98%
6.78%
4.17%
3.71%
3.69%
3.64%
3.34%
3.16%
2.86%
2006 POS
6
1
6
3
17
18
18
New
9
New
SOURCE: MARGAUX MATRIX
Prime positions change with
car design subtleties
Margaux Matrix, the brand exposure
agency, has published a new report
detailing the most visible parts of a
Formula One car for TV coverage. In
2007 the ‘Top Tub’ accounted for eight
hours and 38 minutes of branded
exposure out of a total of 19 hours
and 51 minutes. In 2006 it was only
seven hours 25 minutes out of a total
of 21 hours 54 minutes.
The report indicates a declining
worth of areas traditionally regarded
as the prime locations on cars, namely
the front and rear wings and the
sidepods, which no longer generate the
top on-car exposure. The top of the
car chassis is now the most visible area
of a car after the rise of in-car cameras. Margaux Matrix sales director,
James Gibson, is adamant that the car
sides and wings have declined signifi20
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cantly. He said: “The increasingly complex design of these surfaces may be
having a detrimental effect on the visibility of brands placed there. Once the
cars leave the garage, their branding
can be difficult for the viewer to recognise – apart from when seen from the
on-board cameras. This is borne out
by the ever increasing ‘share ’ gained
only one podium finish. The best ranked
Renault sponsor of 2006, Elf, has dropped
out of the top 10 and interestingly in 2006
recorded roughly double the team exposure
ING received in 2007. ING was still one of
the most visible brands in F1 when one
takes into account that the company was
the most-seen brand amongst the 57 trackside advertisers across the 2007 season.
by the tub top – the area directly in
front of the driver, clearly picked up
by a camera placed atop the roll hoop.”
Car design is also having a big effect
on the visibility of mirror decals.
Some teams now mount mirrors on
the sidepod, putting them out of view
of the on-board camera, rendering
previously valuable spaces useless.
TV COVERAGE
CAR SHARE
SOURCE: MARGAUX MATRIX
RANK
1
2
3
4
5
6
7
8
9
10
sponsor ING, making eighth place despite
CVC Capital Management is believed
to covet Nascar Inc. But Donald
Mackenzie, its managing director, is
believed to have been rebuffed according to sources. CVC has already made
a profit of at least US$1 billion from
its Formula One investment.
The interest in Nascar is fuelled by
the fact that CVC opened its first US
office in New York last March and
Mackenzie is believed to have requested to see Nascar’s accounts – which
have never been made public. Nascar
Inc is thought to have annual sales of
around US$1 billion and profits of
US$300 million. These are unofficial
estimates and have never been
confirmed. The rumours have angered
Nascar’s Brian France. He is insistent
it is not for sale. However, insiders
claim he would listen to an offer north
of US$5 billion.
CVC, which paid US$1.8 billion for
Formula One, is thought to be unlikely
to go beyond US$3 billion. Observers
say Nascar’s free cashflow supports an
acquisition at that price.
France called the rumours, which
first surfaced on a small website called
grandprix.com, “unequivocally false”.
Nascar’s Ramsey Poston said France
had told him: “It’s a dead-end story
that has nothing remotely accurate.”
Poston added: “Nascar is not for sale.”
The journalist who wrote the story is
Joe Saward. He was dismissed as a
fantasist by Nascar sources. But
France was nonetheless forced to deny
the story, which was picked up by
many American news organisations.
CVC executives chose not to
The World Briefing
Spaniard beats Räikkönen’s retainer by US$1m
Alonso gets US$46m-a-year deal at Renault
Fernando Alonso has reportedly negotiated himself a US$46 million-a-year deal at
Renault F1 if he stays for the full period of his contract. Under the deal there is a break
clause after one year on his side, although he will forfeit a considerable slice of his first
year fee if he exercises that break, according to reports. Alonso was represented in
his negotiation by manager Luis Garcia Abad.
The retainer is symbolically important as it is
US$1 million a year more than the US$45
million Kimi Räikkönen is earning at Ferrari. The
deal also puts Alonso on a significantly higher
salary than the US$20 million Lewis Hamilton is
expected to earn at McLaren this year. The
Spaniard himself was earning US$22.5 million
Räikkönen and Alonso with FOM
at McLaren Mercedes last year.
President Bernie Ecclestone
comment. But it is known the company
is targeting sports sanctioning bodies.
It recently bought the GP2 racing series
for US$325 million and has looked at
smaller acquisitions such as the Tour de
France cycle race, amongst others.
The sale rumours have also been
fuelled by two recent tragedies to befall
the France family. In June last year
patriarch Bill France jnr was killed by
cancer and barely a month later the
husband of Lesa Kennedy, Brian
France’s sister, perished in a plane
crash.
Singapore GP to hit 2pm slot
The Singapore Grand Prix night race
will begin at 8pm local time meaning a
2pm start in Europe as usual. The
street race is due to take place on
Sunday 28th September and be the
first night-time event in Formula One
history. Italian company Valerio Maioli
S.p.a. has been chosen to illuminate the
track, with the brightness levels
expected to be four times what is considered normal at soccer stadiums.
Castroneves is a celebrity
Helio Castroneves has turned himself
into a huge celebrity in the United
States after winning the ‘Dancing
With The Stars’ competition, one of
the highest rated shows in America of
2007. The exposure he received for
winning the TV show was far in
excess of anything he received for
winning the Indianapolis 500 in 2001
and 2002. The 32-year-old has also
ditched his fiancee and teamed up with
his dancing partner Julianne Hough.
Prodrive out of F1
Prodrive, run by David Richards, is
out of Formula One and its nascent
entry for 2008 has been cancelled. It
has no guaranteed place in Formula
One in 2009 as the 12th team. But FIA
president, Max Mosley, said: “There’s
nothing to stop them entering for
2009.” As there is no actual demand
for the 12th slot on the grid, it is
thought anyone can have it. Officially
there is no longer a US$48 million
bond required to enter.
Prodrive paid a US$441,400 deposit
to compete in 2008 and has forfeited
that. It also signed a contract to
compete. Mosley confirmed it would
not pursue Prodrive through the
courts to enforce the contract. He said:
“That’s probably it, I don’t think
anybody is going to go after them.”
Prodrive, which had planned to
compete with cars and engines
provided by McLaren and Mercedes,
last month ruled out its entry in 2008
due to a legal and commercial reasons.
FIA floats radical cost-saving
The FIA has proposed radical costcutting measures for next year – which
include limiting teams to the use of no
more than one windtunnel, 15 runs per
IFM buys SMS
eight-hour day, five days a week. The
maximum windspeed will be limited to
50 metres per second, and the
maximum model 60 per cent. Teams
will also be banned from conducting
straight-line testing, with track
running only at FIA-approved venues.
CFD facilities will also be limited.
Further restrictions will be placed on
rig tests, design and manufacturing,
suspension and brakes, hydraulic
systems, bodywork, weight
distribution, circuit testing and the
number of personnel at races. Details
will be given on 11th January, 2008, at
a team principals’ meeting. The FIA
confirmed that Kinetic Energy
Recovery Systems (KERS) will be
introduced from the start of 2009.
The FIA has already announced a
complete ban on any engine
development for 10 years.
The new proposals were regarded as
a joke by some. One technical director
said: “There is no chance of much of
this being adopted.” The proposals
were mainly the idea of FIA technical
consultant Tony Purnell.
Sports Marketing Surveys, the well
known research agency that services
the McLaren Mercedes team, has been
taken over by IFM, which bills itself
as the world’s largest sports research
consultancy. The deal was being
finalised over the turn of 2007, to be
announced officially in the new year.
The takeover has been prompted by
retirement of 72-year-old founder and
managing director, Stephen Proctor.
Rosberg gets US$6m pay
Nico Rosberg has signed a new twoyear deal with the Williams team for
2008 and 2009. He is believed to be
being paid US$6 million a year. It is
his first significant pay-packet for
being a Formula One driver and
reflects his performance in 2007
season. This year will see the German
driver begin his third season at
Williams. Williams is believed to have
Wrigleys, the American chewing gum
brand lined up as a major sponsor
linked to Rosberg. Wrigleys is
represented by Just Marketing.
Sponsorship deals plummet in 2007
Formula One has worst year in modern era
Formula One has suffered its worst year for sponsorship deals in the modern era.
The total annualised value of recorded deals in 2007 plummeted to just US$153.65
million from 45 deals. This compares with US$400 million in 2006 and US$477
million in 2005. The 2007 figure is lower than that recorded in 2003. For the first
time in living memory no new significant deals of any note were announced. The
biggest new deals were signed by McLaren with Aigo and Santander at the
beginning of the year, and Williams with Lenovo. No other deals were higher than
US$10 million. It has also been a very poor year for renewals; the only significant
renewals were RBS and Diageo’s Johnnie Walker brand.
The deals table includes only team sponsorship deals and not those signed with
motor manufacturer partners Mercedes, Honda, Renault, Toyota and BMW.
The biggest deal ever signed remains the five-year, US$200 million title
sponsorship of Ferrari by Philip Morris International’s Marlboro brand, which was
signed in 2005 and runs from 2007 to 2011. The biggest new sponsor deal in
recent times has been ING, which runs from 2007 to 2009 with Renault.
FORMULA ONE DEALS REGISTER 2003-2007
YEAR
NO. OF
DEALS
62
73
42
60
45
ANNUALISED
CASH
US$157.6m
US$122.85m
US$371.4m
US$352.75m
US$141.05m
ANNUALISED
TRADE VALUE
US$24.74m
US$30.25m
US$105.3m
US$48.5m
US$10.075m
2003
2004
2005
2006
2007
* Includes unannounced Marlboro and Ferrari title deal 2007-2011.
TOTAL (ANNUALISED)
VALUE
US$182.34m
US$153.1m
US$476.9m*
US$400.9m
US$153.65m
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