According to reports, McLaren is leading a battle among four teams in Formula 1 to secure a lucrative sponsorship contract with credit card company Mastercard. SportBusiness states that McLaren is competing with Ferrari, Mercedes, and Aston Martin to secure the signature of Mastercard. The report suggests there will be a “sponsorship showdown” to secure a large cash investment, and McLaren has the best chance of securing a title partnership. Ferrari recently closed a major commercial partnership with HP, which is said to be on the same level as Red Bull’s long-term deal with Oracle. Mastercard stated that they are constantly exploring new opportunities to benefit their customers and cardholders, but have nothing new to share at this time. There are rumors that Williams may be the only F1 team without a title sponsor.
Fans of smaller F1 teams may remember Mastercard’s failed partnership with Lola, a British chassis manufacturer, during the 1997 season. Lola planned to debut in F1 in 1998, but due to rival HSBC entering the F1 commercial space with Stewart Grand Prix in 1997, Lola was forced to accelerate their plans. As a result, Lola’s effort was unprepared and they failed to qualify for the Australian Grand Prix, which opened the season. This was a big problem for Mastercard, as they had created an exclusive F1 club for members, offering benefits like newsletters and Lola team merchandise. However, with Lola’s uncompetitive cars, consumers had little incentive to support a team they couldn’t watch on race day. To avoid further embarrassment, Mastercard withdrew from the partnership before the next race, and Lola’s F1 story came to an end.
Currently, a title sponsorship in F1 is a different proposition for Mastercard. Teams are valued at over £1 billion and regulations such as cost caps and wind tunnel testing have helped level the playing field. McLaren, led by CEO Zak Brown, has become a marketing powerhouse with one of the largest portfolios of commercial partners in F1.
