Formula One is rich again – you can bank on it
The poverty stricken masses will be delighted to learn that while the world at large scrapes around, awash in recession and despair, the richest sport on the planet has become flush once again.
Everyone can call off the bucket collections because Formula One has signed a lucrative deal with UBS, Europe’s second-largest bank making them one of their “Global Partners”. Unfortunately for the likes of Hispania and the other struggling small teams they won’t see a penny. The deal is for advertising boards and other such services that decorate the side of the track and the paper plates in the VIP section.
The deal which comes into effect for the Singapore Grand Prix will see none of the cash go directly to the teams themselves, however it may attract other like-minded sponsors to invest in the sport.
How anyone makes any money from Formula One is beyond belief, it almost transcends money, like Manchester City on wheels. The cost of running a team is astronomical; a steering wheel alone is £25,000 so Formula One teams do require a constant stream of cash that these days only the most established of outfits can manage.
On their website UBS state that: “As a Global Partner of Formula 1, UBS is now associated with a unique sport which will be the centrepiece of UBS's international sponsorship portfolio. This partnership constitutes a key element of UBS's newly launched branding activities and underscores the values that UBS shares with Formula 1: a commitment to high performance and success through teamwork.
“It will also provide UBS with year-round logo presence during the televised races as well as client hospitality opportunities at one of the world's leading, high-profile sporting events.”
As part of this deal the UBS logo will be seen all over the world as they join German insurer Allianz, logistics company DHL and South Korean electronics company LG as the fourth Global Partner.
UBS are so far refusing to reveal how much they are spending on this project, but you can bet it’s an absurd amount.
What do they get for their cash? Well according to the their website: “In 2009 it [Formula One] was watched by over 520 million television viewers from 187 countries, making Formula 1 the most-watched annual sport in the world.”
That sure is a lot of people that they hope will look past the rocket cars for a few seconds and subliminally take in the name of a bank that they won’t find on their high street.
Ever since tobacco branding was banned from the Formula One, banks have stepped in to fill the breach, however next year Credit Suisse, RBS and ING, will not to renew their ties with the sport as a result of the financial down turn. Santander are still going with sponsorship at Ferrari and a few drivers, but really the sport needs the big companies to start investing heavily. This season has seen one of the biggest ever divides between the poor teams and the rich teams and it could all go very “Premier League” if it continues.
Still the sport as a whole is making money again and just in time as well, Bernie Eccelstone was thinking that he may need to hold back on the reserve case of Cristal champagne this weekend.
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