Archive for the ‘Motorsports’ Category

Philip Morris International, the tobacco giant, today extended its main sponsorship deal with Ferrari, the famous Italian Formula 1 motor racing team, despite the fact that a ban on tobacco advertising means that the cars no longer carry any of its branding.

Philip Morris’ Marlboro cigarette brand became a sponsor of Ferrari in the 1980s and it has been the title sponsor of the team since 1997. The present deal, signed in 2005 and worth an estimated $160 million per year, was due to expire at the end of this season.

The new deal with the team, whose official name is ‘Scuderia Ferrari Marlboro,’ runs for four years until the end of 2015.

Tobacco advertising in Formula 1 has been banned throughout the European Union since 2005 and similar bans elsewhere and restrictions on its exposure on television have meant that it has also disappeared from races outside Europe.

However, Ferrari has maintained its relationship with Philip Morris, making it the only one of the 12 teams to have a partnership with a tobacco company.

Earlier this year, the firm told Autosport: “We see no obstacles in the way of extension. Our relationship with Ferrari is a real partnership built over a period of over 20 years of constant, mutual support.”

Last year, Ferrari agreed to drop a controversial ‘barcode’ livery from its cars following complaints that it resembled that of Marlboro and was intended to be ’subliminal’ advertising.

However, the cars and drivers continue to sport red and white logos, colours which are associated with the cigarette brand, and Ferrari images and connections are used in Marlboro advertising in countries where it is permitted, notably in Asia.

Rupert Pratt, the managing director of UK sponsorship agency Generate Sponsorship, said that, in light of differing legislation, the ‘Scuderia Ferrari Marlboro’ name still had significant value in some parts of the world.

He said: “In Asia you [as a tobacco firm] can still market yourself via naming rights, which is why I think they’ve maintained the name.”

Pratt added that, in a competitive global marketplace, Philip Morris would also still be benefiting from corporate hospitality and trading retail support as a result of its continued association with Formula 1.

He said: “It’s a significant investment for a very limited inventory but what it does pick up is quite useful when there’s very little they can do.”

In addition to Philip Morris, other prominent Ferrari sponsors include Santander, the Spanish banking group, Shell, the international oil giant, Acer, the computer manufacturer, AMD, the computer processor supplier, and Kaspersky, the IT security software provider.

Sportcal.com

 RP

“Like it or not, F1 and sport in general isn’t above having a social responsibility and conscience” -Mark Webber (Red Bull Driver)

Sport and politics are regular bed fellows (from the Berlin, Munich, and Moscow Olympics to anti apartheid boycotts in South Africa). The big question is when sport, politics and money collide, which should come first?

The Bahrain Grand Prix was put on hold earlier this year due to pro-democracy protests which have led to more than 30 deaths, hundreds of arrests and worrying reports of torture since March, when the race was originally scheduled to take place. Mark Webber was almost certain that Bahrain GP will be rescheduled commenting that the decision “would have sent a very clear message about F1’s position on something as fundamental as human rights and how it deals with moral issues.” He goes on to suggest “when people in a country are being hurt, the issues are bigger than sport. Let’s hope the right decision is made…”

Today, Webber is fuming at the decision of F1 chiefs giving the green light to go ahead for the reschedule after the FIA was sent out to check the situation, resulting in them coming back and reporting that everything is fine. Because of this there has been controversy suggesting that Formula 1 is out of touch with reality and is living in its own bubble. Webber states that “as a competitor, I do not feel at all comfortable going there to compete in an event when, despite reassurances to the contrary, it seems inevitable that it will cause more tension for the people of that country”.

Reasons for the event to go ahead and be rescheduled have been obvious when considering the money involved. $100 million would be lost if the event was canceled, which suggests why organizers are doing everything in their power to stage the event this year. This put forward the question of where should sport draw the line? Should it be oblivious to questions of human rights and politics? Surely no-one will turn up while the country is in total chaos?

Nabeel Rajab, president of the Bahrain Centre for Human Rights, spoke out today saying that “it is a very sad moment to hear that Grand Prix feels that their benefits and their interests are more important than the human rights of people in this region”.

F1 is not equipped as an organization to determine international human rights issues, but it is equipped to manage its own reputation and reinstating the race was a mistake. Yes the commercial implications will be complicated but maybe it is these organizations that should take the lead? The sponsors should support (or insist) on the team’s withdrawal. Bernie has seen off multiple coup attempts before but he is now representing CVC Capital Partners who must take a good look at their own reputation management and that of the sport.

The short term financial losses are minimal versus the potential long term reputation implications. This issue could be quickly forgotten but, if not handled correctly, it makes sporting history.

RP & JS