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Formula-1 Signs $100 Million Sponsorship Deal

Formula One have struck a huge deal. They are going to sell sponsorships in a brand-new deal for the motorsport industry. The new owner is Liberty Media F1 and their move looks like it is fuelling the fire for a lot of rumours.

Commercial Move

Formula One look to have completed one of the biggest commercial moves in the history of the sport. They have signed a deal for over $100 million. As a result of this deal, they are going to sell sponsorships to certain companies and this shows that there is going to be a radical shift in the sport. Liberty Media are a group who are controlled by John Malone. Malone is a billionaire and he managed to acquire the race car series in the year 2016. The deal was for $8 billion and he then signed a deal with the Interregional Sports Group. They are a marketing agency who are based in London and they have the global rights now when it comes to sponsorship in Formula One. The deal comes at a pressing time because a lot of people are concerned about how much influence that gambling companies have in terms of sporting groups. This also marks a very important change for the company and this is especially the case when you look at the regime previously. If you want to play games that are based on F1 then check out this website.

Bernie Ecclestone

Bernie Ecclestone is known for running Formula One and he did it for over 40 years. Liberty then took over and then refused to accept any endorsements from betting groups. They were under the impression that, at the time, it would tarnish the sport’s image and that it would also devalue the sport in general. Sean Bratches, who is known for being the managing director at the Formula One company has described the deal as being fan-centric. He is in charge of the commercial operations and he has stated that millions of viewers have grown very accustomed to gambling partnerships and that this should be no different. He added that the income would easily improve the spectacle and that it would also mean that teams could then fund the enormous costs that it would take for the teams to compete. They also believe that it will improve the sport for the fans as well, which is always a bonus in their eyes. This may be the case but it would appear that the fans are more concerned about the overall impact that this is going to have on the sport in the future.

Balanced Approach

At the end of the day, you have to make sure that you balance as much as you can for your fans. The Formula One company believe that this is an opportunity that will serve both the fans and the company in general. Mr. Britches has stated that the deal is material but he would not comment on the value at the time. People who are familiar with the terms of the contract have stated that it is easily going to amount to $100 million over the next five years. This would make it one of the biggest sponsorship deals in the history of Formula One. The company have had some very lucrative deals with companies in the past and some of them include the likes of Rolex. Of course, when you look under the new terms you will also see that ISG are going to be paying an upfront fee to the company Liberty. The agency are going to recoup their money though and they are also hoping to profit in some way. They are going to strike up a series of deals with some of the gambling sponsors and they are also going to try and do everything they can to target an international market.

Sponsors

Of course, it is important to know that sponsors will be permitted to have their brands shown at the trackside. This can be done through electronic billboards or even on-screen graphics. This is going to be done through televised races. If you are familiar with the thinking of F1 then you will soon find that they are not contemplating allowing any kind of sponsor to show odds that will somewhat encourage viewers to place bet during a race. This is because a lot of countries have legal blocks to stop this from being shown to a broadcasted market and there are even some restrictions on gambling when it comes to sporting events too. Some are concerned about the impact that it is going to have on children. In the UK, the F1 have their most valuable market but there are some restrictions on the gambling companies and the way that they advertise. This is especially the case when major sporting events are taking place.

When you look at countries such as Australia or even Italy on the other hand, they have laws that restrict or even ban gambling groups from being able to endorse sporting organisations when live events are being held. The founder of the NC Partnership, Nigel Currie has come out to say that gambling is now mirroring the tobacco sponsorships that once took place and that it is going to be quite some time before the gambling industry is going to be able to really advertise freely in every market.

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