Sponsorship renewal talks between Formula 1 and Dubai-based Emirates reportedly broke down to the point that a new airline sponsor is being sought.
The ‘Fly Emirates’ slogan has had high profile visibility on TV screens, trackside hoardings, as well as Grand Prix, naming rights for the most part of the past decade but that is set to end as F1’s asking price – double the current rate they are on – is too high.
Sports Business report on their website that “F1 is lining up a new airline sponsor after renewal discussions with Dubai-based carrier Emirates broke down over the asking price.”
“The deadline for the global airline to extend the agreement has passed and negotiations have ground to a halt, with F1 understood to be asking for around twice the figure of close to $25-million per year that the brand is understood to paying in the current cycle from 2018 to 2022,” concludes the brief report.
At the start of 2018, the second phase of their partnership with F1, which began in 2013, Emirates CEO Thierry Antinori explained: “There’s an excellent fit between Emirates and Formula 1, from the global extent of our destination network and the cities in which races take place, to the focus on innovation and technology that underpins the sport.
“F1’s global appeal also provides us with an opportunity to share in the passion of the millions of fans who follow the sport, many of whom are our customers,” added Antinori.
Since then, F1 has boomed massively with an influx of new sponsors keen to cash in on the Netflix, Drive to Survive, inspired rush of interest and exposure, particularly in North America, a traditionally dormant but massive market for the sport.
Hence, no surprise old longstanding deals will go by the wayside as F1, under Liberty Media, also cashes in as all shareholders expect their businesses to do.