Rumoured Heineken Deal Good for Formula 1, but Not Necessarily Individual Teams

By
at Internationaled.org

Published: May 22, 2016

commentComment         Print This Post Print This Post

The Netherlands is the centre of the Formula One universe this week. First, there was Dutch driver Max Verstappen's astonishing win in Spain, and now there are rumours that brewing giant Heineken is set to announce a new sponsorship deal with the racing series.

The agreement is said to be worth $150 million over five years, according to a report in Dutch newspaper De Telegraaf (h/t the Guardian's Paul Weaver).

This is great news for Formula One Management (FOM), the sport's commercial rights holder, coming on the back of Shell's recent withdrawal as a series sponsor (though their relationship with Ferrari continues), per German website Motorsport-Total.com (h/t Crash.net).

It is not necessarily great news for F1's teams, though.

That is because FOM, a privately held company, takes a cut of the revenue from series sponsors (as opposed to the teams' individual sponsors) before distributing the rest to the teams through annual prize money disbursements. FOM's cut is approximately 35 per cent, according to Autosport's Dieter Rencken and Lawrence Barretto.



So the actual amount the teams will receive, if the Heineken rumour is accurate, is somewhere in the neighbourhood of $100 million over five years. With 11 teams currently competing in the sport, that would work out to a bit less than $2 million each year per team if the prize money were distributed equally—but it's not.

And it's not exactly a massive windfall in a sport where some team budgets are counted by the hundreds of millions.

Aside from dealing with the inequitable prize money payouts, the teams are actually battling against the commercial rights holder for sponsorship dollars. Some companies sponsor teams, placing their logos on the cars and the drivers' race suits, while others sponsor F1 itself.

If you were a company, what would you prefer: your logo plastered around ev...
Article Source: Bleacher Report - Formula 1

Latest News


Comments




Sponsors

Bruins Tickets The Boston Bruins are a professional ice hockey team based in Boston, Massachusetts. They are members of the Northeast Division of the Eastern Conference of the National Hockey League.

Red Wings Tickets The Detroit Red Wings are a professional ice hockey team based in Detroit, Michigan. They are members of the Central Division of the Western Conference of the National Hockey League.

Penguins Tickets The Pittsburgh Penguins are a professional ice hockey team based in Pittsburgh, Pennsylvania. They are members of the Atlantic Division of the Eastern Conference of the National Hockey League.

New York Rangers Tickets play their home games at Madison Square Garden, they are one of the oldest teams in the NHL, having joined in 1926 as an expansion franchise, and are part of the group of teams referred to as the Original Six.

San Jose Sharks Tickets The San Jose Sharks are a professional ice hockey team based in San Jose, California, United States.

Toronto Maple Leafs Tickets The Toronto Maple Leafs are a professional ice hockey team based in Toronto, Ontario, Canada. They are members of the Northeast Division of the Eastern Conference of the National Hockey League.

New Jersey Devils Tickets The New Jersey Devils are a professional ice hockey team based in Newark, New Jersey. They are members of the Atlantic Division of the Eastern Conference of the National Hockey League.

Washington Capitals Tickets The Washington Capitals are a professional ice hockey team based in Washington, D.C.

Buffalo Sabres Tickets The Buffalo Sabres are a professional ice hockey team based in Buffalo, New York. They are members of the Northeast Division of the Eastern Conference of the National Hockey League. Get the Sabres and all of your NHL Tickets here.

NASCAR season is on of the most attended sports in the world. NASCAR Tickets to the best tracks is a must every year. Some of these tracks are: Talladega Tickets, Lowes Motor Speedway Tickets, Pocono Raceway Tickets, located in Ridgeway Virginia you have Martinsville Speedway Tickets and southern US you have two of the most popular Atlanta Motor Speedway Tickets and Texas Motor Speedway Tickets. Don't miss all the racing events this year!

Boston Red Sox Tickets The Boston Red Sox are a member of the Major League Baseball’s American League Eastern Division. Since 1912, the Red Sox's home ballpark has been Fenway Park. This is one of the hottest MLB Tickets sales of any team in the major league.

New York Yankees Tickets The New York Yankees are a professional baseball team based in the borough of the Bronx, in New York City, New York and are a member of Major League Baseball's American League East Division. Get tickets to one of the hottest games of the season Yankees Red Sox Tickets.

Chicago Cubs Tickets The Chicago Cubs are an American professional baseball team based in Chicago, Illinois. They are members of the Central Division of Major League Baseball's National League.

Phillies Tickets The Philadelphia Phillies are a Major League Baseball team based in Philadelphia, Pennsylvania. They are the oldest continuous, one-name, one-city franchise in all of professional American sports, dating to 1883.

Orioles Tickets The Baltimore Orioles are a professional baseball team based in Baltimore, Maryland.

Do you love wrestling? Get your WWE Tickets and WWE Survivor Series Tickets today!