Money on the grid: how sponsorships shaped Formula 1
- pitwallstories
- Aug 30, 2024
- 4 min read
The livery in Formula 1 has been used since the 1960s, replacing the national colors previously used. It is not a matter of mere aesthetics: because of the high costs involved in the sport, teams must come to terms with the need for profitable sponsors. Being competitive in Formula 1 requires external funding, in order to be able not only to get on track, but also to develop cars and hire the drivers and engineers best suited to a team’s needs. How does the sponsor market work? When did it start? Let’s find out together.
The first team to be fully sponsored in Formula 1 history was Yeoman Credit Racing team. Yeoman Credit LDT was the name of an automobile insurance company that needed advertising support: one of the best ways to get it was by sponsoring a racing car. The agreement was reached with the British Cooper Racing Team. We are in the early sixties: for the morality of the time, the entry of sponsors in a sport that had been considered until then "noble", was not welcomed with open arms. The other teams even became hostile to Yeoman: in 1963 the British team abandoned Formula 1.
With hindsight, sponsors will have a great fortune in the world of motorsport: after the initial misgivings, everyone began to understand the advantages that derive from these collaborations. Needless to say, teams are not the only ones gaining from sponsorship: of course, they obtain large sums of money, however likewise the brands concerned have the possibility to expand enormously their market. Entering Formula 1 means reaching millions of people all over the world!
Those who have been following Formula 1 for many years surely remember the iconic liveries sponsored by big tobacco names: Marlboro, Camel and Rothmans are just some of the brands that have chosen to advertise their product through motorsport. A contradictory link if you think about it: tobacco is not known for its positive effects on athletes! But this is a debate that will only arise as the years go by. Let’s see how it develops. The sponsorship of tobacco in Formula 1 reached its peak between the 1980s and 1990s: this era is characterized by a fascination for speed, risk and style, an environment that was obviously heavily exploited by these companies. Moreover, Formula 1 is the sport that has the highest number of fans in the world under the age of 25 (with the exception of NBA): it is not difficult to understand the reasons why tobacco’s companies wanted to expand into this sector, considering that a young customer is more profitable in the long run than an older one.
The US brand Marlboro officially entered motorsport in 1972, finding a two-year deal with British racing motors. In 1974, the partnership with McLaren gave us one of the most famous collaborations in the history of Formula 1. Even more iconic would become the collaboration with Maranello’s Scuderia: Marlboro and Ferrari had a history, but until then the brand was only a minority sponsor that we could find on suits or helmets. In 1997, the team was officially named "Scuderia Ferrari Marlboro": the white and red of the American cigarette packs seem to fit perfectly into the livery of the Italian team.
However, in the early 2000s, growing public awareness of the health risks associated with tobacco consumption led to increased control over cigarette brand communication. The European Union has played a significant role in this direction: in 2001, the WHO’s Framework Convention on Tobacco Control tightened the knot further by calling for a total ban of all forms of promotion.
In 2006, the ban becomes official for Formula 1 teams. One could imagine that the relationship between Marlboro and Ferrari had come to an end. However, things were not so simple: neither side was going to give up such an important agreement! There was only one chance: they had to be creative to circumvent the ban, that is resort to the so-called "subliminal marketing". It refers to a form of advertising that uses hidden or suggestive messaging to influence people's behaviour without them even realizing it. Obviously this was against the law: Ferrari and Marlboro were willing to take the risk. To do this, they used the barcode: the latter was disguised so that it was not obvious that it referred to the US brand, but it was similar enough to look like it. Some even suggested that, thanks to cars’ speed, it was even possible to see the Marlboro logo! However, in 2010 the authorities became suspicious: one month after the start of the investigation, Ferrari decided to remove the barcode.
Is it really the end for Marlboro? Not exactly. In 2018, a new brand appears on the Ferrari: "Mission Winnow". It is a company directly linked to Marlboro: it does not market anything of its own! The company’s website, which bears the name "Philip Morris", proves it: does it tell you anything? Exactly, they are the same manufacturers of American cigarettes. This time we can talk about "guerrilla marketing", a form of unconventional advertising: the most curious would have looked for more information on the unknown sponsor and would have found out that it was associated with Marlboro. Everyone was talking about it, but this time this incredible story was really coming to an end: in 2022 Mission Winnow was banned and Marlboro would stop sponsoring its product in Formula 1.
The search for new sponsors would finally lead to a profitable diversification in the sport, with companies from sectors such as technology, finance and consumer goods. The transition has highlighted the ability of sport to adapt and evolve: the legacy of tobacco sponsorship reminds us of the path towards a more sustainable and ethical future.
Written by Emma
