Since I wrote about Formula 1's new partnership with Lego, and as the world championship enters its 75th year, I've noticed they have made a number of further partnership announcements over the last few months with other major brands such as LVMH, Mattel and Nestle ahead of the upcoming season. For example:
- LVMH will be a global F1 partner for 10 years from 2025. Louis Vuitton will be the Title Partner for the first race of the 2025 season in Melbourne which will be named the FORMULA 1 LOUIS VUITTON AUSTRALIAN GRAND PRIX 2025. Moet & Chandon will be the Official Champagne of F1 and the Title Sponsor for the Belgian Grand Prix;
- F1 has entered into a multi-year partnership with Nestle and KitKat is the official chocolate bar of F1. This will launch in 2025 to coincide with the 90th anniversary of KitKat and the 75th anniversary of F1;
- There is a new global licensing partnership with Mattel to create F1 themed Hot Wheels products and the full range will launch in 2025;
- The current partnership with American Express has been expanded with a multi-year sponsorship;
- F1's relationship with crypto.com has also been extended until 2030. This will include fan experiences, activations and the brand will feature at races;
Sports sponsorship and brand partnerships are big business. It was estimated that the 2024 F1 season would generate over $500million in sponsorship revenue. Elsewhere in the sporting world, the 2024/5 season of the NBA has a record 51 marketing partners and the NBA's 32 active sponsors are worth around an estimated $890 million.
Sporting events are a lucrative opportunity for brands to capitalise on visibility to potentially millions of fans at venues, on team kits/equipment and via event broadcasts. Brands will pay significant sums to place their trade marks in these contexts and behind all the glamour and spectacle, it is crucial that IP portfolios are robust to support this activity.
"This is a partnership between two global icons linked first and foremost by their great passion for innovation, excellence and creativity, which makes them two exceptional timeless stories". Stefano Domenicali, President and CEO, Formula 1 (in relation to LVMH partnership)
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