F1 - Is This its Ultimate State?
We can all agree that F1 does not have the media coverage football does in Europe, nor it has the attention in the US, like the NFL or NBA. Nevertheless, Formula One is still big, and nobody can deny it. It's not like it's at the bottom of the food chain! Nevertheless, we're going to talk about where things can go wrong, and whether bookmaker sponsorships can ruin F1 as it is today. In case you didn't know, so far, there aren't any betting companies involved in F1, which says a lot about the nature of it! Note, this is a not an article on how to bet on F1 races!
Bookies and Online Betting Sites Reach Far
F1 teams are powered by gigantic international companies that have steady cash flows and positive income statements. Basically, you've heard about all of them at some point in time. Moreover, if you're a passionate F1 fan, you know exactly who they are. Chances are, you've noticed that the F1 sponsors are different, kind of. That being said, there isn't a single bookie that's supporting any F1 team. At the very least, this is the case so far!
In spite of their reach, meaning they have the ability to entertain tens of thousands of customers at any time around the globe, they still haven't entered motor sports. We can't say the same about Horse Racing, so it's not a racing thing.
The boiling question is, is it the betting sites that don't like F1, or are the F1 teams are reluctant to take money from bookies?
Betting Companies Fuel the Premier League - Is F1 Safe?
A rather good example of the what bookies can do is the Premier League. It's become a playground for leading, customer hungry sportsbooks that want a bigger market share, more media coverage and stronger brand image. Literally, every other Premier League is sponsored by a bookmaker, such as 32Red, bet365, Fun88, Betway and Dafabet among others.
Bookies are not bleeding excessive amounts of money on these sponsorship deals, yet they still manage to slip through. As a comparison, sponsors that are not into betting are spending up to 10 times more money on these deals. It's almost as there's an external influence that mandates football clubs to accept bookie sponsors at discount deals.
And we know, for a fact, that these companies are making millions, and some of them even billions each year. How do we know this? Well, betting sites are publicly traded, and as such, they have to provide public reports annually, and some even quarterly.
What COULD Potentially Happen?
This external influence we mentioned, we hope it won't "happen" to F1. Why? Because F1 teams have only limited space to boast the logos of their trusted sponsors. Imagine bookies overwhelming the top positions, and the teams having to cave in to their offers? Less money means slower advancements, no improvements, and we can already imagine some teams lacking money to even finish a full season.
If, for whatever reason, some existing sponsors refuse to have their logos put next to a betting company, this can be a tough blow for F1. At the moment, leading F1 constructors are extremely close to breaking even, and some of them are self sustaining. The idea is, the F1 team should obtain enough funds to cover the operating costs, the R&D and any other management costs on itself. Usually, the parent company, such as Ferrari, or Daimler AG, they fund the team until it starts breaking even. When a team is lacking money, the parent company can step in and match the gap.
So, we know for a fact that betting and gaming companies have the upper hand, at least that refined echelon of top profiting ones. Although they invest millions in their image and how the society perceives it, not all businesses have the same approach to marketing and branding. As long as sponsors offer ENOUGH money to F1 teams, we can't complain.
On the Flip Side - F1 Can Become a Battlefront for Prestige
And it really can! However, we don't see a happy ending. The thing is, for the first few years bookies can start breaking spears for extra brand presence, but eventually, they'll give up. And when there's no competition, the offers become underwhelming. Needless to say, these sponsorship deals in the early stages can become extremely attractive, that the Formula One team management wouldn't be able to say NO to them.
We can already imagine how bet365 is in a fierce marketing battle with William Hill or Betfair. Nevertheless, for the time being, it appears F1 sponsors and the F1 constructors can rest easy.
All it Takes is Just ONE Bookie To Enter F1
It's like discovering new fertile land, and the farmers are the bookies. It just takes one betting company to "proudly sponsor" an F1 team, and all of them will hop aboard. This is, still, just an assumption. However, it takes only one bookie to enter F1, and corporate intelligence will pick up from there. The thing is, there will be new punters who like to bet on F1. And higher revenues are inevitable. That's all the bookies care for. Sure, they will pay the "sponsor bill" to the F1 team, no doubt about that, but once F1 betting becomes big enough, bookies will come forward with new conditions.
Although we hate saying it, and we can't confirm it, ever since bookies started funding football clubs, the game has changed. Back in the days, there were clear rules that bookies can't sponsor football clubs. Even now, in some countries, this is still the case. Imagine an F1 where the key F1 teams are getting the largest share of their funds from bookmakers. The idea, leaves a sour taste.
Sports Betting has been Illegal in the US, Just Because of This!
Let's go to the other side of the "pond". The USA was against sports betting for decades, with only Nevada entertaining passionate sports bettors. One of the starting grounds for the ban on betting was that it would have a negative impact on sports as we know them, in particular to NFL, MLB, NBA and NHL. We totally get them, but after more than a decade of back and forth lobbying, now, the ban is lifted.
We're not saying betting is bad, nor we're saying that it's dangerous for sports and competitive racing. However, frankly speaking, we're in favor of some kind of a ban on bookmaker sponsorships for sports and racing teams. Eventually, money corrupts, and we don't like following biased races, unobjective sports matches. It's like watching a rigged gladiators fight. Not exciting, right?
At this moment, there are no valid rumors that lead us to believe that any things will change regarding bookies sponsoring F1 teams, or F1 in general. We hope it will stay that way, because there's enough money for the time being. If, and only IF the need for extra money comes, even then, F1 teams should tread carefully. F1 fans are a cohesive fan base, you don't want them upset!
