Formula 1 could be looking for another airline sponsor as talks about contract renewal with Emirates have reportedly not been fruitful. F1 is said to have asked for a larger sum this time around, which Emirates deems too much. According to recent reports, another airline is already being considered, suggesting that F1’s relationship with Emirates could soon come to an end.
Chances of renewal are slim
Discussions about Emirates’ sponsorship renewal with Formula 1 have reportedly broken over money. According to a report by SportBusiness, F1 is asking for around twice as much as its current sponsorship amount of $25 million.
Emirates’ association with the motorsport began in 2013 when it became an F1 Global Partner, joining its sponsorship portfolio. A year after Liberty Media acquired F1, Emirates renewed its sponsorship contract ahead of the 2018 season.
The deal allows the airline trackside branding and activation opportunities at 15 races in a year. It is also allowed to display its brand in the hospitality areas for guests and other zones at the races. Emirates, however, is not allowed to advertise at Abu Dhabi, Singapore, and Bahrain Grand Prix, as branding rights for these races have been given to Etihad Airways, Singapore Airlines, and Gulf Air, respectively.
While it is not yet known which airline is in the running to replace Emirates, the fact that F1 is engaging in discussions with another carrier means that Emirates’ deal with the motorsport is on shaky ground.
Formula 1 has enjoyed an increase in its brand value over the last few years since Emirates last renewed its contract. For the 2023 season, it has 24 races scheduled in its race calendar.
SportBusiness highlights that the US has become particularly interested in the sport, especially after partnering with Netflix for the documentary series “Drive to Survive.” The report states that F1 teams’ total US-based brands have gone up by 21.1% from 133 deals in 2021 to 161 in 2022. At a broader level, F1’s total US-based sponsors have also increased to six in 2022 from just two in 2020.
Photo: Getty Images
In the last 12 months alone, F1’s central sponsorship portfolio has gone up to $410 million, an increase of $100 million, due to the backing of brands such as Tata Communications, and Lenovo, among others.
Emirates, however, seems to have a different opinion about the value of its association with F1 and does not think that the current ask justifies the sponsorship.
Emirates is one of the most visible brands in the world of sports, often displayed on the players’ jerseys and sportswear and across stadiums. The airline has entered deals with some of the biggest football teams in the world, including Real Madrid, AC Milan, and Arsenal FC.
Photo: Getty Images
Its portfolio in tennis includes Grand Slam tournaments like the French, US, and Australian Open, along with dozens of high-profile ATP events. Emirates also sponsors more than 15 global golf events, supports Team New Zealand in sailing, and is involved in other sports, including cricket, cycling, and rugby.
What are your views on this? Please leave a comment below.
- IATA/ICAO Code:
- Airline Type:
- Full Service Carrier
- Dubai International Airport
- Year Founded:
- Ahmed bin Saeed Al Maktoum
- United Arab Emirates