Formula 1 has always been a sport that combines both heritage and innovation. Historically dominated by luxury brands, oil giants and watchmakers, it is now undergoing a significant commercial transformation. Sponsors such as Rolex, Petronas and Shell, who have been pillars of F1 for decades, now face competition from disruptive new players. Crypto companies, fashion brands and tech giants are seizing F1’s global growth, changing the way sponsorships function across teams, drivers and fan engagement.

With a younger, digitally engaged fanbase emerging, largely driven by the success of Drive to Survive and F1’s expansion into new markets, Brands now recognise the need to connect with audiences through deeper storytelling, engagement, and alignment with modern values such as sustainability and innovation to build meaningful relationships with this new generation of fans.

Teams: The Shift from Traditional Partners to Modern Investment

For many years, F1 teams have relied on established sponsors, ranging from oil companies to high-end consumer brands, to fund their operations. These partnerships not only provided financial stability but also reinforced F1’s image of luxury. However, newer brands are now challenging this traditional model.

Tech giants like Google and AWS have gone beyond typical sponsorship, embedding their technology into team operations. Fashion houses such as Boss and Tommy Hilfiger are transforming partnerships into lifestyle collaborations. On the other hand, the rise and fall of crypto sponsorships has revealed the risks associated with chasing short-term financial gains. The 2022 fallout of FTX from Mercedes, for example, exposed the volatility of these new players and forced teams to rethink their commercial partnerships. (1) This year, we saw the first ever F1 deal that was paid completely in cryptocurrency, with the partnership between Aston Martin and Coinbase. (2)

As the sponsorship landscape evolves, teams are increasingly having to strike a balance between the legacy stability of long-term sponsors and the fresh investment and innovation offered by new players. The most successful teams will be those that align with brands capable of evolving with the sport.

Drivers: From Team Ambassadors to Global Influencers

F1 drivers are no longer just athletes. They have become global influencers, shaping consumer trends and brand perceptions beyond the track. While sponsorships were traditionally handled at a team level, today’s drivers are creating their own high-profile partnerships, redefining how brands interact with the sport.

Lewis Hamilton’s collaboration with Lululemon (3), Charles Leclerc’s association with APM Monaco and Carlos Sainz’s partnership with L’Oréal Paris (4) highlight how drivers have become powerful marketing assets. Their influence stretches beyond motorsport, allowing brands to tap into new audiences and form stronger connections with fans. However, this shift also brings challenges. As drivers form personal sponsor relationships, potential conflicts with team-wide partnerships must be managed carefully to ensure a cohesive commercial strategy. An example of this is Charles Leclerc being a brand ambassador for luxury jewellery brand APM Monaco. (5) While this makes sense due to the driver being from Monaco, it could be seen as ironic due to the FIA’s strict new safety regulations restricting jewellery for drivers, which became a lot stricter in 2022, which was the year Lewis Hamilton clashed with the FIA over his jewellery, particularly a permanent nose stud. (6)

As F1 embraces a digital-first approach to fan engagement and lifestyle branding, drivers play a central role in shaping the sport’s sponsorship landscape. Their ability to connect heritage brands with modern consumer trends makes them invaluable assets in F1’s evolving commercial ecosystem.

Fans: The Changing Expectations of Engagement

F1’s fanbase has undergone a significant shift in recent years, with a growing proportion of younger, digitally savvy fans driven by the rise of Drive to Survive. This new fanbase means that an increasing number of fans are craving more interactive experiences, exclusive content and meaningful engagement.

While legacy brands like Rolex maintain their prestige, newer sponsors are focusing on digital activations, social media campaigns and immersive fan experiences. Red Bull, for example, has revolutionised sponsorship by integrating extreme sports, digital storytelling and fan engagement into its F1 strategy.

Fashion and tech brands have emerged as more stable partners that understand the long-term value of fan engagement. These brands, such as Boss and Google, offer collaborations that go beyond visibility and extend into the lifestyle of fans. For example, fashion brands use drivers as ambassadors, bringing F1 into fans’ daily lives and creating content that resonates on social media platforms. (7) Similarly, tech brands enhance the fan experience through digital innovations, giving fans more access to data and insights while enhancing their connection to the sport.

These long-term, fan-focused partnerships demonstrate the shift in sponsorship strategy. The most successful brands are those that understand the evolving expectations of F1’s global fanbase, aligning their values with the sport’s digital transformation and delivering more than just traditional branding.

 The Risk of Chasing the Highest Bidder

If F1 focuses solely on securing the highest bidder, it risks compromising the very prestige that has made the sport iconic. Legacy sponsors like Shell and Petronas have built F1’s financial foundation and bolstered its luxurious image, attracting a dedicated fanbase that values the sport’s tradition and exclusivity. These fans connect with F1 not just for the spectacle but for the heritage it represents, a world of high performance, craftsmanship and elite brands.

Prioritising short-term financial gains from brands that may not share these values could dilute F1’s essence. The influx of new brands, particularly in the crypto and tech sectors, may bring in immediate revenue but could feel transactional rather than rooted in the sport’s culture. If F1 focuses too much on securing the biggest pay checks from passing trends, it risks alienating its loyal fans who are drawn to its history and prestige. These fans seek authenticity and brand alignment that reflects the high standards and legacy of F1.

The shift towards mass-market could create a divide between F1’s loyal, core audience and the new wave of followers who are attracted by more superficial sponsorships. It could lead to a loss of connection between F1’s brand identity and its most dedicated supporters, who may feel the sport has lost its exclusivity and cultural value. For F1 to succeed in the long term, it must balance embracing new, innovative sponsors with maintaining the authenticity and prestige that has made it a global phenomenon. The future of F1’s sponsorship ecosystem should focus on partnerships that reflect its legacy, ensuring growth while preserving its identity.

The Future of F1 Sponsorship

F1’s commercial ecosystem is at a crossroads. Legacy sponsors must evolve to stay relevant while newer brands must demonstrate their ability to offer long-term value instead of short-lived financial gains.

The most successful partnerships will be those that strike a balance between heritage and innovation, combining prestige with modern engagement strategies. In a time where passive sponsorship is no longer enough, F1’s future belongs to brands willing to evolve, connect with fans, new and old, and drive commercial success in new and dynamic ways.