F1 Sponsorship: How Team Performance and Shared Nationality Influence Partnership Longevity

What is it about?

This research investigated the factors influencing the continuity or dissolution of brand partnerships in Formula One (F1) racing, utilizing over 53 years of international sponsorship data. The findings empirically confirmed the sponsorship performance cycle: enhanced team performance is strongly associated with a lower probability of sponsor dissolution. Specifically, teams employing championship drivers or demonstrating superior historical performance had significantly reduced rates of sponsor exit. In addition to performance, other sponsor characteristics influenced partnership longevity. Brands designated as having high brand equity and those that are publicly traded were more likely to continue their agreements. Geographically, sponsors sharing the same country of origin (COO) as the team showed greater partnership longevity, which suggests a benefit of brand localness in these business-to-business (B2B) relationships. The most durable sponsorships generally occurred with high-performing teams that maintained limited sponsorship clutter.

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Photo by Philip Myrtorp on Unsplash

Photo by Philip Myrtorp on Unsplash