UBS reduces its visibility in F1
Swiss bank UBS has decided to refocus its presence in F1 on events with VIPs rather than trackside advertising.
When the bank UBS announced its arrival as a sponsor of F1 in August 2010, it was perceived as a return to normal for finance, as many financial institutions had cut their sports investments due to the economic crisis that was just beginning.
This partnership was widely supported by the company’s new CEO, Oswald Grüber, who was already behind the partnership between his previous bank, Crédit Suisse, and Sauber. This motorsport enthusiast was thus able to indulge his passion while supporting the image of his company.
But times have changed for the Swiss bank since Oswald Grüber has already been replaced by Sergio Ermotti. He finds himself in a much less comfortable situation as the cost-cutting measures he has implemented result in the elimination of 10,000 jobs between 2012 and 2015. Furthermore, it has been facing since last month an indictment by the French justice system for aggravated money laundering of tax fraud.
Exposing oneself to the eyes of the entire world on circuits across the globe is therefore not necessarily the best solution for the brand’s communication teams. It has thus decided to review its association with F1, as confirmed by a spokesperson to the Swiss newspaper Blick: « We will put customers back at the center of the system and focus the brand’s exposure on important growing regions. »
This will lead the brand to give up its title sponsorship of the Chinese Grand Prix, but the brand will still be visible on the lower sides at Grand Prix like Monaco, Abu Dhabi, and Singapore. The presence for the latter event is logical since the State City’s investment fund has become one of its main shareholders.
Conversely, 1,000 clients of the establishment will receive passes to access the VIP area of Formula 1, the famous and exclusive Paddock Club. This therefore reinforces the image of Formula 1 as a commercial platform where companies prefer to be present in a space away from cameras and photographers to strengthen their business relationships rather than just advertising.
This new contract with FOM allows the bank to reduce its annual bill from 50 million Swiss francs to approximately 30 million.
With the participation of www.Racingbusiness.fr
