Liberty Media has executed its first big deal by securing a $100 million paycheck by selling sponsorships to betting companies.
A contract has been signed between new owners Liberty Media and London based marketing agency, Interregional Sports Group with respect to the global rights of F1 gambling sponsorships.
Bernie Ecclestone wasn’t quite in favour of acquiring sponsorship from betting companies, as he felt the value of the sport would come under question if he did so.
But the new American owners don’t have the Ecclestone ideology and want to come up with ‘fan centric’ moves in order to popularise the sport.
Fans all over the world have seen a surge in the number of gambling partnerships in sports and thus are more familiar to it.
Controversial decision from F1 to allow mid-race betting, especially with gambling advertisements going the same way as cigarette ads/sponsorship. Should they be treated the same way by #F1 too?
— Chris Stevens 🏁 (@CStevens_journo) September 18, 2018
Here is why the @F1 betting deal make sense. Their global fan base is heavily engaged with betting.
Formalised relationships with the betting industry will also help with integrity related issues#sportsbiz @MurrayBarnett https://t.co/JhZVwMIHEv pic.twitter.com/ZJMV9fliSX
— Rob Mills (@Millsyrob) September 18, 2018
According to Sean Bratches, the managing director of F1’s commercial operations believes that the deal would help bring in more funds for the sport and for all teams involved.
Under the deal, gambling brands might be able to advertise their product during F1 races, but the intricacies of the deal still haven’t been agreed upon, as there are multiple restrictions in different countries regarding how betting brands can advertise themselves.
Now, the $100 million value is an estimate and not an official quoted figure, with the deal set to run for the next 5 years.
Also, the deal is expected to be one of the biggest in F1 history and will mark a paradigm shift with respect to how the sport approaches its sponsorship deals.
What do you feel about this betting sponsorship deal?