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Good morning, Qualifiers!
Thank you for your patience with the letter. My wife and I had our second daughter two weeks and, as an independent commentator, I haven’t been able get this edition out sooner.
In that time, Adrian Newey announced he’s leaving Red Bull, Max Verstappen is rumored to be meeting with Mercedes, and Ferrari has announced a new title sponsorship with HP which has been reported as being close to $100 million annually.
Let’s dive in.
The Battle for Title Sponsorship
In what may be the most significant move for Scuderia Ferrari for the immediate future of the team, they have sealed a multi-year title sponsorship with Hewlett-Packard (HP), bringing to the grid the arrival of "Scuderia Ferrari HP" starting with the Miami Grand Prix this weekend. This marks only the third time Ferrari will race in Formula 1 with another brand name in its title.
Courtesy HP Press
Ferrari will display the HP logo prominently on their F1 cars and drivers' overalls, highlighting the integration of HP's technology across Ferrari’s operations, including adaptive PCs and collaboration services. This partnership extends beyond the racetrack, as it also includes the Ferrari esports team and the F1 Academy female-only series, further widening HP's branding presence.
This is not simply a branding exercise. The collaboration is poised to boost business growth for HP while embedding sustainable innovation practices within both entities. They plan to advance educational initiatives and sustainable technologies, making a significant impact on and off the racetrack.
HP's commitment to Formula 1 is not new; they previously partnered with Williams from 2000 to 2005 and have current engagements with other sports teams, indicating their strategic approach to sports marketing. This partnership with Ferrari serves as a potent platform for HP to reach global audiences and drive their sustainability agenda forward.
This deal isn't just about logos, branding, and initiatives, though, there’s big money in this one, and it’s set the benchmark for this type of sponsorship: $90-$100 million annually. Two years ago, Oracle and Red Bull signed a massive title sponsorship.
A Sponsor Showdown
SportBusiness reports a "sponsorship showdown" brewing among top teams Ferrari, Mercedes, Aston Martin, and McLaren, with McLaren being in pole position to clinch what might be a title sponsorship.
The pursuit for Mastercard's signature is a strategic play by these teams, aiming to inject substantial funds into their operations. Mastercard, known for its previous, though brief, F1 partnership with Lola in 1997, is back on the hunt, seeking opportunities that align with customer and cardholder value.
Mastercard is likely chomping at the bit to get back into F1 after VISA and Cash App title sponsor the aptly named VCARB F1 Team, and American Express signed a multi-year deal with Formula 1.
The F1 sponsorship landscape has evolved significantly since the '90s.
With teams now valued at over $1 billion and stringent regulations in place to level the playing field, securing a title sponsorship with a global financial giant like Mastercard could be a game-changer, especially for a team like McLaren.
Under CEO Zak Brown, McLaren has transformed into a marketing juggernaut, boasting an array of commercial partnerships, setting the stage for what could be another significant addition to their sponsorship portfolio.
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