One of the most glamorous sports around, Formula One racing has attracted a host of blue-chip sponsors in the past few decades, and the latest company to lend its name to it is no exception. Emirates airline have put pen to paper for a five-year deal worth £6.3m a year to F1.
Having already agreed multi-million pound deals with the likes of Arsenal Football Club, Emirates’ latest foray into sports sponsorship will see the company’s logo feature on course grounds, bridges over racetracks and even in the team paddocks, and is due to start in time for the Malaysian Grand Prix next month.
Spreading their wings
At a time when many sports are feeling the pinch due to a lack of lucrative sponsorship deals (F1 being no exception), the deal with Emirates is welcome news, while it shows that the airline are determined to boost brand awareness. F1 attracts hundreds of millions of viewers worldwide, and the exposure Emirates stand to gain from its sponsorship could be huge.
A spokesman from Forex trading experts City Index explained how the deal between Emirates and Formula One could enhance their global profile:
“Emirates’ brand footprint is ever-growing with now strategic sponsorship deals in place with Arsenal Football Club, Paris Saint Germain FC and F1. The move into high profile sports sponsorship is expensive but gives the airline important cut through in a globally followed sector.”
Tough times for sport?
In the wake of the global economic crisis where many developed nations have experienced slow or non-existent growth, many sports fans have opted to stay home instead of going to their favourite events. This has seen many sports, especially ones like F1 feel the pinch as sponsors and broadcasters consider reducing their spending or walking away altogether.
One such sponsor who might be considering their commitment to the sport is Swiss banking group UBS, who may pull out after entering the sport in 2010. If they do pull out, there may be cause for pessimism from the sport’s governors about the chances of finding a replacement.
Emirates’ investment in F1 may help the sport to attract further sponsors, while many of the teams who are reportedly struggling to make ends meet will hopefully benefit. In the meantime, the deal, which could be worth up to £125m to F1, could signal better times ahead for both the sport and the airline.