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JANUARY 7, 2003

Formula 1 rate cards tumble

The cost of Formula 1 sponsorship has tumbled in recent years, according to an article in The Times newspaper in London. The story cites an anonymous former F1 sponsor which has revealed that the value of space on a mid-grid car has almost halved in the last three years.

"Three years ago being a title sponsor for a middle ranking team would have set you back around $11.2m for one season," the article said." That fee has since collapsed to between $6.4m and $8m. The very basic entry level to get in the Formula 1 team door was around $806,000 three years ago. Now you can take at least a third off that."

What is most interesting about the revelations - which are not really surprising - is why they have been made public. There is speculation that it may be an attempt by the sponsor in question to bring down the cost of sponsorship in order to stay in F1 at a cheaper price. Publishing the details of a rate card undermines any other sponsors who might be offering more money than the figures revealed.