Emirates signs a $200 million contract with F1

Qatar is not the only emirate investing heavily in sports on a global scale. The United Arab Emirates is following the same strategy, with its two heavyweights, Dubai and Abu Dhabi. The airline of the former has just signed a $200 million contract with F1.

It is therefore a major contract that Bernie Ecclestone has just signed with one of the fastest-growing airlines in the world. According to information from the Financial Times, this five-year contract is expected to bring in 200 million dollars to the FOM.

This is part of the FOM’s strategy to sign partnership agreements with global brands in order to increase its revenues, which are still relatively modest in this sector. In recent months, such agreements have been concluded with Rolex and Tata Communications.

The logo of the Dubai airline will thus be displayed at 15 of the 19 races currently on the calendar. The four races where this signage will not be implemented are Australia, Monaco, Bahrain, and, paradoxically, Abu Dhabi, the capital of the United Arab Emirates. The reason for this absence is that these different events already have strong ties with competing airlines: Qantas in Australia, Gulf Air in Bahrain, and Etihad in Abu Dhabi. As for the Principality, it is the only event in the championship authorized to manage its own advertising around its circuit.

Beyond the simple aspect of sponsorship on the circuits, Emirates will bring a real boost to the global broadcasting of F1 as the races can be watched live on the company’s planes, as confirmed by Bernie Ecclestone: Emirates has an international first-class reputation and I am delighted to welcome such a prestigious company as a global partner of Formula One. Watching the races live on the plane will be something special for Emirates customers, and Emirates’ brand display at so many races on the calendar will strongly support their ambitious expansion plan. With significant complementarities between their priority markets and ours, we should have many years of success through this important partnership.

Emirates is therefore continuing its significant investment plan in sports, which has already led it to give its name to Arsenal’s new stadium, sponsor Paris-Saint-Germain and AC Milan, and also become the official airline of the entire ATP. A program that the airline intends to further develop, as confirmed by HE Sheikh Ahmed bin Saeed Al-Maktoum: « For many years, Emirates has been at the forefront of sports partnerships worldwide. With the addition of this global partnership with Formula 1, we continue to expand our sponsorship portfolio, which will certainly be appreciated by sports fans. »

Emirates is not entirely a newcomer to F1 as it was a sponsor during McLaren’s 2006 season. This could be the first step for Dubai, which has absorbed its significant financial losses from the onset of the 2008 crisis, in overshadowing its rival Abu Dhabi. While Abu Dhabi has developed the impressive Yas Marina complex, it does not have an exclusive contract within the United Arab Emirates to host F1. Therefore, it is conceivable that Dubai might one day host its own Grand Prix.

But the battle will be difficult since Bernie Ecclestone also confirmed that he was negotiating with Qatar, and the region might risk being over-represented on the calendar: « We have two events in the region. So it might be difficult to add another one… »

With the participation of www.Racingbusiness.fr