How Jean Todt retained $200 Million title sponsorship deal for Ferrari in 2007 amidst feud with chairman

In 2007, Ferrari signed a $200 Million 5-year sponsorship deal with Marlboro spearheaded by Jean Todt despite disagreements with leadership.

There has been no brand collaboration in the world of sports as that of Marlboro and Ferrari. During the 2000s, the partnership between the two oversaw one of the most dominant teams, running the fastest cars on the planet by the best driver in the World.

Marlboro is a brand of cigarette by Philip Morris International. It is one of the most famous cigarettes and has had a long-lasting relationship with Ferrari’s F1 team since 1973.

The Tobacco giant first appeared in the liveries of Ferrari’s F1 cars in 1984. And in 1997, when Marlboro became the title sponsor of Scuderia Ferrari’s F1 team.

This was Ferrari’s golden era in F1. The Italian team won 5 consecutive Championship titles between 2000 and 2004 with the great Michael Schumacher behind the wheels of the ‘Prancing horse.’

With an iconic driver, Marlboro’s logo was evidently displayed. F1 was also televised worldwide, giving brands an edge to make an international presence by Sponsoring an F1 team.

And Marlboro tried to seize the opportunity by renewing its sponsorship with Ferrari. But Ferrari’s team had pricked fractions on whether to continue with the deal or move ahead.

Also Read: When McLaren boss paid Fernando Alonso $16 Million to get rid of Kimi Raikkonen

Why Ferrari’s Chairman wanted to reject Marlboro

Ferrari wasn’t the only F1 team to have a partnership with a Tobacco giant. But there was increasing global pressure to ban tobacco advertisements which could impact the image of Ferrari.

This was a time when Ferrari was adored. Micheal Schumacher was every kid’s childhood hero, and they had a poster of the 7-time World Champion sporting a Tobacco company on his gear. Thus, the image of Ferrari was being questioned by many groups.

And Ferrari’s chairman Luca Di Montezemolo wanted to take Marlboro off the car for 2007. He had instructed his team and was keen on getting a non-tobacco sponsor to Maranello.

Montezemolo invited Sir Martin Sorrell, CEO of WPP Group, the world’s biggest advertising agency group, to Maranello. He wanted to discuss whether WPP and its network of sponsorship agencies could help find a new title sponsor for 2007.

But the former team Principal, Jean Todt, hijacked the visit of Sorrell. And in the aftermath signed the biggest sponsorship deal to date done by any sports team.

Also Read: How Kimi Raikkonen’s manager plotted Michael Schumacher exit from Ferrari

How Marlboro signed a $200 Million deal with Ferrari

Jean Todt, the former team Principal of Ferrari, wanted to keep Marlboro as Ferrari’s sponsor. He was friends with Louis Camilleri, the chairman of Altria, the Marlboro parent company.

When Todt heard of Sorrell’s visit to Maranello, he acted quickly. Todt met Sorrell and asked him why he was there. The Frenchman told Ferrari had renewed a deal with Marlboro. Sorrell wondered that he and the visit had effectively wasted his time.

But as Sorrell was leaving, Montezemolo found him and ushered him into a small adjacent conference room. But it was too late as Sorrell told the Chairman of Ferrari about Todt’s move.

Todt had brokered a five-year deal with Camilleri. Marlboro will pay $200 million a year to Ferrari. It was the biggest sponsorship deal ever in Formula One, and the team could not turn down an offer.

Also Read: When Michael Schumacher dropped $45 million a year salary just not to team up with Kimi Raikkonen