The partnership is thought to be worth US$10 million every year, including advertising and all other aspects.
In This Article...
Ferrari and Shell expand their long-term collaboration
Shell and Ferrari have renewed their long-term partnership, and Shell will now continue to support Scuderia Ferrari, the manufacturer’s Formula One team, as its “Innovation Partner.”
Over the course of their more than 90-year partnership, Shell and Ferrari have managed 10 F1 World Championships and 12 Drivers’ Championships. Some industry insiders estimate the value of the restored partnership to be roughly PS40 million every season.
The partnership between Shell and Scuderia Ferrari began in 1929, the year our team was established, according to Ferrari Team Principal Mattia Binotto.
“During that time, we have achieved a great deal of successes together. Therefore, we are thrilled that we will now be able to continue working together even longer.
“We have a lot of things in common, like the passion for racing, excellence, and collaboration that have made this alliance one of a kind in the annals of motorsport.
As our Innovation Partner, Shell will help us with the ambitious challenges that lie ahead, including Formula 1’s goal of becoming emissions-free by 2030, as well as the transfer of racing technology to mobility.
With the extended partnership, Scuderia and the oil and gas company will work together to help Formula One achieve its 2030 goal of having a net zero carbon footprint.
The company will also help with product development, such as using sustainable fuels and enhancing Ferrari’s V6 turbo-hybrid engine. The thermal efficiency of the engine is currently around 50%.
The renewal, according to Shell’s official statement, is “the next exciting chapter in this cooperation” and will involve the two parties working together to “reduce the team’s carbon footprint, allowing them to reach their broader sustainability ambitions.”
“Our cooperation with Ferrari has bred genuinely exceptional inventions, ones Shell constantly depends upon when producing new fuels and lubricants for our clients,” said Istvan Kapitany, Shell’s Global Executive Vice-President for Mobility.
“We are now entering a very exciting period in our shared history as we use this cooperation to not just pursue success on the racetrack but also to provide cleaner fuels and lubricants for our consumers.”
Which team ought to Paul Millsap join?
Ferrari’s ability to attract sponsors isn’t just influenced by its storied past and enigmatic reputation. Despite not winning the championship since 2008, it has consistently finished at the top of the standings, winning at least one race in eight of the last 10 years. With its sponsorship from oil tycoon Shell alone stretching back to the 1920s, as we have observed, this steady success has drawn devoted brands.
Ferrari has 69.2% more sponsorship dollars than McLaren, which is its closest competitor but has also struggled in recent years. In contrast to Ferrari, which has regularly been outperformed by rivals Red Bull Racing and Mercedes, McLaren started having engine problems in 2014 when F1 switched from a 2.4-liter V8 to a 1.6-liter V6. Despite this, McLaren is still F1’s second-most successful team, having won 20 drivers’ and teams’ championships to Ferrari’s 31.
Due to its success, McLaren became one of the most sought-after Formula One teams. The highlight of its sponsorship roster was a title collaboration with telecoms giant Vodafone, which at its peak paid an estimated $75 million. In 2009, it contributed to the team’s overall sponsorship income of about $184.9 million, but by 2018, it had reversed to $57.9 million, which, as we have previously stated, is still a high-octane effort given its performance and the difficulties the market is currently suffering.
Considering that the data only includes teams that are currently racing in 2019 and excludes team owner spending, America’s Haas F1 sits at the bottom of the list despite only having been in the sport for three seasons.
Having led a team that has been examining the sponsorship deals for 15 years, the author has particular insight into the worth of F1 sponsorship. Since 2004, fees for every sponsorship arrangement have been calculated using data from thousands of company filings and hundreds of interviews. Values are determined by the number, size, and placement of decals, as well as additional advantages that the sponsor received and the team’s performance at the time the contract was signed.
In the first-ever searchable database of F1 sponsorship values, the results have been gathered in the new Formula Money Sponsorship Database. The database includes all team sponsorship agreements made since 2004 as well as all series alliances, race title sponsorships, trackside advertising, and team owner expenditures throughout that time. It includes more than 6,000 transactions totaling more than $30 billion from 1,066 different companies.
Ferrari paid $17.8 billion in sponsorship money to the F1 over the past 10 years, accounting for 11.8% of the total. It demonstrates once more why the Italian team controls the F1 field.
Shell
Shell is important to the daily commutes that people take. Shell has been assisting people on their journeys for more than a century, whether they are traveling for employment, education, or to carry goods and services.
With an ambitious eye toward the future, Shell is constantly working and developing to address the shifting mobility landscape, anticipate the changing demands of their consumers, and provide more and cleaner energy options in accordance with their net-zero aspirations, both now and in the future.
Shell is the top mobility retailer in the world, serving 30 million consumers every day with over 500,000 front-line personnel managing 46,000 retail locations in nearly 80 countries. They supply the fuels, lubricants, automobile care, convenience retail products, and services these clients require to make the most of their journeys as they are constantly innovating to meet their needs. This includes Shell V-Power, a gasoline used by Scuderia Ferrari in every race and made possible by the innovation relationship between Shell and Ferrari. Shell V-Power contains 99% of the same compounds as Shell V-Power race fuel.
One of Shell’s oldest and most fruitful business partnerships was renewed in 2021 and involves Shell and Ferrari. Advanced sustainable biofuels and synthetic liquid fuels, both of which have the potential to considerably reduce emissions, will be further developed by Shell. Along with helping the team limit their impact on the racetrack, Shell will also aim to offset any carbon-producing activities that cannot currently be avoided or reduced through the use of second-generation biofuels for track support facilities and logistics. In addition to continuing to work with Scuderia Ferrari to produce successful products that will assist the team succeed on the track, Shell will also develop and implement strategies that will help the team reduce its carbon footprint and help it meet other sustainability goals.
What is the cost of F1 sponsorship?
We have made an effort to provide an answer to the query “how much does sponsorship cost…” in many of the blog’s articles. Or “How much to sponsor an F1 team?” These are important questions to ask when working on a sponsorship deal for a business, and they are frequently the first ones put to sport marketing companies like ours.
Today, we’d like to talk about the price of sponsorships in the world of Formula 1. For those who study sports marketing, the Formula 1 championship has long been one of the most fascinating events. It is also a frequent case study in the sponsorship industry. In reality, Formula 1 is where the idea of contemporary sport sponsorship originated, and this is where we can still find the most unexpected developments in the field. Because of this, people are constantly interested in learning how much it costs to sponsor Formula 1 and how much money sponsors spend.
Like MotoGP, F1 is a global sport with the unusual (and quite uncommon) quality of being a mobile communication platform: every seven to fifteen days, the circus travels to a new nation, bringing with it the opportunity for participation on-site, hospitality options, etc.
But it’s definitely worthwhile. According to Nielsen, Formula 1 is the most elite form of motorsport, drawing 1,922 million viewers worldwide on TV each year (the top viewing markets were Brazil, Germany, Italy, the United Kingdom, and the Netherlands). In terms of total TV viewership, Europe is first (66,7%), followed by Central and South America (22,1%), Asia Pacific (5,1%), North America (3,4%), and Africa and the Middle East (2,8%). The average F1 watcher is 38 years old, 62% male, 38% female, and there are typically 0.44 children per household. When compared to other prominent series like the Premier League (42 yo, 67% male) and the Champions League (41 yo, 70% male), it has a younger, more varied audience. With the F1 organization alone having +31M followers across all platforms, social media is also a useful avenue. Mercedes, Ferrari, and Red Bull are just a few teams with tremendous fan bases (21M, 14M, 18M followers each).
Many people think of Ferrari, Mercedes, and McLaren as emblems of technology, performance, excellence, and speed in addition to being sports teams. The truth is that F1 sponsorship arrangements come in a wide variety, with Red Bull investing hundreds of millions of dollars to minor F1 sponsors having access to back-of-the-grid sponsorship packages for EUR500k.
We attempt to provide a more thorough response with the aid of the Business Book, illuminating the whole situation of Formula 1’s sponsors and partners. A complete list of Formula 1 sponsors for 2022 is shown below, broken down by team.
Ferrari and Shell extend their 92-year partnership
Ferrari and Shell have decided to continue their relationship, which began in 1929.
Ferrari and Shell, their Innovation Partner, will collaborate under the multi-year technical and commercial arrangement not only to achieve F1 success but also to help define upcoming engine regulations, which are scheduled to change in 2025.
The partnership between the two businesses has already produced 12 driver championships and 10 F1 World Championships for constructors.
The partnership between Scuderia Ferrari and Shell dates back to 1929, the year our team was founded, according to Ferrari team principal Mattia Binotto.
In their own press statement, Shell stated that in addition to “creating and implementing solutions that would support in decreasing the team’s carbon footprint, helping them to reach their broader sustainability targets,” the “next exciting chapter in this cooperation” will also involve that.
The team’s V6 turbo-hybrid power unit, which already boasts a thermal efficiency of close to 50%, making it one of the most efficient engines in the world, will continue to be improved by Scuderia Ferrari and Shell, they continued.
In order to help Formula 1 achieve its aim of using 100% sustainable fuels in the cars, the two firms will also collaborate to define how fuels can be produced for the future, including advanced sustainable biofuels and synthetic liquid fuels.
When tested on the track, these technology and lessons could eventually be applied to lower road transport emissions.
Is Shell a Ferrari sponsor?
The relationship between Shell and Scuderia Ferrari has existed since the first FIA Formula 1(r) World Championship season in 1950, making it one of the longest-running and most fruitful partnerships in the annals of motorsport.
Scuderia Ferrari has won 12 Drivers’ Championships and ten FIA Formula One Constructors Championships thanks to our race fuels and lubricants. Check out some of the highlights and achievements from our amazing cooperation.
Shell joined Ferrari when?
Shell is a business that boldly looks to the future, continuously researching and developing; Shell is committed to understanding the changing mobility landscape and the demands of its customers, today and in the future.
The group’s activities are centered on social responsibility, environmental responsibility, and safety. As they endeavor to strengthen Shell’s position as a leader in the oil and gas industry in more than 80 countries, Shell’s employees and 500K front-line service champions are guided by the same factors.
The company generates over 3.1 million barrels of oil equivalent per day and invested $122 million in voluntary social investment abroad and $1.1 billion in research and development in 2015.
With 30 million daily consumers, Shell is the largest single brand retailer in the world and the largest retailer of fuels. Within the 43,000 Shell service stations that make up its global network, customers may buy fuel, lubricants, and other products and services.
This includes Shell V-Power, a gasoline that was developed as a result of the long-standing collaboration between Shell and Ferrari on innovation. 99 percent of the Shell V-Power gasoline used by Ferrari in Formula 1 races is also marketed on Shell retail websites.
Both Shell and Ferrari take great pleasure in their relationship, which began in 1929 when Enzo Ferrari established his racing team in Modena and chose Shell as his business partner.
With 12 Formula One Drivers’ Championships and 10 Formula One Constructors’ Championships between them, Shell and Ferrari currently have one of motorsport’s most successful collaborations.