Honda is Top F1 Spender as Sponsors Pile in Record $2 Billion to F1 Teams
03-11-2002, 02:23 PM
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Honda is Top F1 Spender as Sponsors Pile in Record $2 Billion to F1 Teams
Honda is Top Spender as Sponsors Pile in Record $2 Billion to Teams
by Caroline Reid
Formula 1 Magazine
March 2002
P. 19.
"DESPITE A DOWNTURN is the sponsorship market, Formula One as a whole has proved it is once again in a very healthy state and is TV's top global sport.
Honda leads over 200 sponsors putting in sums from $200 million to $50,000 into 11 teams competing for the world championship over 17 races this season.
Hinda is reckoned to be lavishing an astounding $210 million on its engine program supplying two teams with engines.
Seven sponsors own or have equity in the teams they support. That is a matter of policy. The biggest owner in Renault which is the second highest sponsor at $170 million by dint of not wanting too many sponsors on its car and its image tarnished. Renault is Europe's second-largest car-maker and chairman Louis Schweitzer believes it is money well spent. He regrets pulling Renault out of Formula One at the end of 1997 and has maintained an unofficial involvement. This time Renault is back to stay.
But it is Honda's lavish spending that tops the charts. It has a very expensive operation, with fully fledged Formula One facilities in Britain and Japan. It also has engineers based at British American Racing in Brackley. Some of the money is being offset against its car R&D budget because so many engineers are being trained in the Formula One division. Ironically, Honda gives no financial assistance directly to either of its teams and both have had financial problems in the last 12 months.
British American Racing is a mere three seasons old but already has lived through the most amazing existence. It has income of $70 million, yet manges to spend nearly $100 million, meaning an ongoing loss of $30 million. The only good news is that it is down from upwards of $70 million a few years ago. Likewise, Jordan Grand Prix, Ltd. had sales of $95 million in 2000, up sharply from $70 million the previous year. But after the partial withdrawal of Benson & Hedges, it is looking at a budget nearer $70 million again. Deutsche Post has come to the rescue in a very difficult year for finding new sponsors.
Toyota entered Formula One with the reputation of being a big spender. It will probably be the biggest spender in 2002 if marketing support and capital investment are included. But for now it is entering Formula One in a fiscally responsible way, with the fourth biggest budget of $140 million. With capital investment, it will spend $1 billion over the first three years. Toyota firmly believes it will get its money back in global exposure. Indeed, Formula One has already visibly changed the perception of the Toyota brand.
DaimlerChrysler will spend $129 million in 2002 and Ford $125 million on Jaguar.
BMW is spending some $115 million. British American Tobacco is now the biggest commercial sponsor in Formula One, providing $88 million a year to its now wholly-owned Formula One team, British American Racing."
FORMULA ONE SPONSORS -- 2002 SEASON
Rank. Sponsor/Team/Total
1. Honda/BAR/Jordan/$210m
2. Renault/Renault/$170m
3. Toyota/Toyota/$140m
4. DaimlerChrysler/McLaren Mercedes/$125m
5. Ford Motor Company/Jaguar/$125m
6. BMW/BMW Williams/$115m
7. British American Tobacco/BAR Honda/$88m
8. Marlboro/Ferrari/$87m
9. Fiat/Agnelli Group/Ferrari/$85m
10. Exxon Mobil/Toyota/McLaren Mercedes/$58m
11. Reemsta (West)/McLaren Mercedes/$50m
12. Vodafone/Ferrari/$41m
13. Petronas Malaysia/Sauber/$38m
14=. Compaq Computer/BMW Williams/$36m
14=. DHL/Deutsche Post/Jordan Honda//$36m
16. Asiatech/Minardi/$35m
17. Panasonic/Toyota/$31m
18. Mild Seven/Renault/$30m
19. Shell/Ferrari/$29m
20. Elf/Renault/$27m
by Caroline Reid
Formula 1 Magazine
March 2002
P. 19.
"DESPITE A DOWNTURN is the sponsorship market, Formula One as a whole has proved it is once again in a very healthy state and is TV's top global sport.
Honda leads over 200 sponsors putting in sums from $200 million to $50,000 into 11 teams competing for the world championship over 17 races this season.
Hinda is reckoned to be lavishing an astounding $210 million on its engine program supplying two teams with engines.
Seven sponsors own or have equity in the teams they support. That is a matter of policy. The biggest owner in Renault which is the second highest sponsor at $170 million by dint of not wanting too many sponsors on its car and its image tarnished. Renault is Europe's second-largest car-maker and chairman Louis Schweitzer believes it is money well spent. He regrets pulling Renault out of Formula One at the end of 1997 and has maintained an unofficial involvement. This time Renault is back to stay.
But it is Honda's lavish spending that tops the charts. It has a very expensive operation, with fully fledged Formula One facilities in Britain and Japan. It also has engineers based at British American Racing in Brackley. Some of the money is being offset against its car R&D budget because so many engineers are being trained in the Formula One division. Ironically, Honda gives no financial assistance directly to either of its teams and both have had financial problems in the last 12 months.
British American Racing is a mere three seasons old but already has lived through the most amazing existence. It has income of $70 million, yet manges to spend nearly $100 million, meaning an ongoing loss of $30 million. The only good news is that it is down from upwards of $70 million a few years ago. Likewise, Jordan Grand Prix, Ltd. had sales of $95 million in 2000, up sharply from $70 million the previous year. But after the partial withdrawal of Benson & Hedges, it is looking at a budget nearer $70 million again. Deutsche Post has come to the rescue in a very difficult year for finding new sponsors.
Toyota entered Formula One with the reputation of being a big spender. It will probably be the biggest spender in 2002 if marketing support and capital investment are included. But for now it is entering Formula One in a fiscally responsible way, with the fourth biggest budget of $140 million. With capital investment, it will spend $1 billion over the first three years. Toyota firmly believes it will get its money back in global exposure. Indeed, Formula One has already visibly changed the perception of the Toyota brand.
DaimlerChrysler will spend $129 million in 2002 and Ford $125 million on Jaguar.
BMW is spending some $115 million. British American Tobacco is now the biggest commercial sponsor in Formula One, providing $88 million a year to its now wholly-owned Formula One team, British American Racing."
FORMULA ONE SPONSORS -- 2002 SEASON
Rank. Sponsor/Team/Total
1. Honda/BAR/Jordan/$210m
2. Renault/Renault/$170m
3. Toyota/Toyota/$140m
4. DaimlerChrysler/McLaren Mercedes/$125m
5. Ford Motor Company/Jaguar/$125m
6. BMW/BMW Williams/$115m
7. British American Tobacco/BAR Honda/$88m
8. Marlboro/Ferrari/$87m
9. Fiat/Agnelli Group/Ferrari/$85m
10. Exxon Mobil/Toyota/McLaren Mercedes/$58m
11. Reemsta (West)/McLaren Mercedes/$50m
12. Vodafone/Ferrari/$41m
13. Petronas Malaysia/Sauber/$38m
14=. Compaq Computer/BMW Williams/$36m
14=. DHL/Deutsche Post/Jordan Honda//$36m
16. Asiatech/Minardi/$35m
17. Panasonic/Toyota/$31m
18. Mild Seven/Renault/$30m
19. Shell/Ferrari/$29m
20. Elf/Renault/$27m
03-11-2002, 02:57 PM
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Proving, I suppose, that it takes more than money to win races. You would think they could leverage more of that capital in the engine department given the fact they have four cars out there.
I'm still hopeful this year, but Jordan/BAR are continually also-rans. A healthy dose of power + reliability would be welcome.
At any rate I'll be cheering and I wish both teams and all drivers luck!
I'm still hopeful this year, but Jordan/BAR are continually also-rans. A healthy dose of power + reliability would be welcome.
At any rate I'll be cheering and I wish both teams and all drivers luck!
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