Long Live the King! Fast Food Brand Ambassadors Return Following Hiatus 7th September, 2015

Brand ambassadors have long been used by brands, however it is the return of a larger than life King that has drawn attention across the globe in recent months. Once over shadowed by the might of McDonalds’ Ronald McDonald character (named after former CEO and inventor of the wildly loved chicken nugget) the Burger King, King has returned!

Distinctive and instantly recognisable, standing at over 6 feet tall ‘The King’ has been sighted at various high profile events this summer including the 147th Belmont Stakes where he appeared with Triple Crown winning trainer Bob Bafferrt.

The King’s resurrection began at the start of the summer forming part of the entourage which escorted Floyd Mayweather to the ring during the ‘fight of the century’ against Manny Pacquiao in May this year.

Due to the furor of offenses and negative publicity following Floyd Mayweather in recent years, brands have been cautious to not align with the star; however reports have sited that Burger King purchased the rights for $1 million, becoming one of Mayweather’s first sponsors for some years (having topped the Sport Illustrated Fortune 50 athletes with $0 endorsement deals three times).

The mere sight of the brand ambassador in this setting created mass attention around Burger King. Social media interaction increased significantly creating over 1,343% growth interest for the brand. Yet not all interest was positive with many criticising Burger King for supporting the convicted domestic abuser across Twitter.

With Adweek reporting The King created over a weeks’ worth of publicity for Burger King simply by appearing in coverage of the ring walk with Floyd Mayweather perhaps this is the first in line for the fast food ambassadors – beware the return of The King, Ronald, and The Colonel.

Red Bull Challenges F1's Sponsorship Stallion 5th December, 2012

In the last couple of weeks, the Red Bull Racing and Sebastian Vettel vs. Ferrari and Fernando Alonso rivalry has dominated sporting headlines. In the end it was yet again the former who took both the Constructers’ and the Drivers’ World Championship titles in the thrilling Formula 1 season finale in Brazil. This nail-biting end to the season has prompted a closer look at the team’s and driver’s success off the track and their contention for the commercial crown.

The Constructers’ (Sponsorship) Championship:

Despite prize money being in the millions, sponsorship is by far the key source of revenue for both teams and their drivers which begs the question: who is leading the commercial championship?

According to Forbes’ latest list of the ‘Formula One’s Most Valuable Teams’ Ferrari’s total revenue is estimated to be around £240m with £190m being generated from sponsorship alone. Nearly £155m is generated via three major deals with Shell, Santander and title sponsorship partner Marlboro. These three deals are worth more than any other team’s total sponsorship revenue.

But what about Red Bull Racing? Out of all teams on the grid, they are surprisingly down in fourth in the overall revenue standings at £100m in 2011. 60% of this revenue comes from Red Bull’s success on the track earning them more prize money than any other team in the championship however the contribution from sponsors falls significantly shorter than Ferrari, coming to £38m positioning the team in the middle of the sponsorship field. The main reason for this is that the brand does not seek sponsors for most of their advertising space as this is generally used for self-promotion. As opposed to Ferrari (whose title sponsor is Marlboro at £100m) and other leading teams like McLaren Mercedes (Vodafone, £47m) and Mercedes AMG F1 (Petronas, £35m), Red Bull is sacrificing a significant amount of commercial opportunity in this area. However, this may all be about to change with the constructors’ champions securing their first title sponsorship deal with Nissan’s luxury arm, Infiniti.

When reviewing the revenue potential of both teams, Ferrari should still be out of reach in the short-term with regards to team value however with Red Bull being the fastest growing team in the paddock, the commercial gap is certainly narrowing.

The Drivers’ (Sponsorship) Championship:

Are Vettel and Alonso also competing for a sponsorship title? In his latest blog post, Mark Mylam asked whether sports men and women as brand ambassadors were really worth the money from a sponsor’s perspective as there is always a risk associated with their image deteriorating and affecting the image of the endorsed brand. An almost risk-free sportsman for instance could be Sebastian Vettel. The driver is unarguably one of the most charismatic Formula 1 drivers, as demonstrated at last year’s Autosport Awards and although his interview at the podium ceremony of Abu Dhabi included some strong words, nothing seems to be able to tarnish his image. This is why Sebastian Vettel, who manages his endorsement deals himself, enjoys lucrative sponsorship deals with Casio and Procter & Gamble’s Head & Shoulders worth around £2m in total, according to a study carried out by Sport + Markt.

Fernando Alonso, on the other hand, seems to have a completely different persona. One could perceive him as being rather introverted although he is not one to shy away from commercial opportunities with earnings upwards of £6m through his deals with Santander, Tag-Heuer and Puma in 2011. This positions Alonso at the top of the sponsorship leaderboard with Michael Schumacher way behind at £3.5m and Lewis Hamilton (£2.5m) ahead of both Sebastian Vettel and Jenson Button, both at £2m. Marcel Cordes, Executive Director at Sport + Markt, points out that it is unlikely that Vettel will be able to close this gap as “he (Vettel) is already very strongly associated with the Red Bull brand”. Also, Sebastian Vettel is not interested in signing sponsorship deals just for the sake of securing a higher income. He’s already stated in the media: “It is not a goal for me to earn more money. For me, it is important that the brand is ideally suited to me”.

Compared to other sports stars like Roger Federer or Kobe Bryant, sponsorship earnings of Formula 1 drivers are minimal because in most cases, the teams control almost all of their driver’s sponsorship rights.

It is interesting to see that championship wins have by no means been reflective of either team’s or drivers’ respective commercial successes but will this continue into 2013? With the pressure mounting on Sebastian Vettel, could we see Ferrari’s sponsorship stallion overtake the Red Bull both on the track as well as off or will the power of the ‘Vettrick’ prove too much to contend with? Let us know your thoughts!

Caterham Cars appoints Slingshot as Sponsorship Agency 30th April, 2012

Caterham Cars has appointed Slingshot Sponsorship to activate all commercial opportunities outside the Caterham F1 Team activity.

Slingshot will implement an extensive sponsorship strategy, including brand marketing partnerships, endorsement deals, licensing, corporate experience days, and much more.

The aim of the partnership is to create unique properties that can leverage the Company’s profile, and enhance the brand’s global appeal, capitalising on the brand’s entry into Formula One earlier this year.

Ansar Ali, Chief Executive of Caterham Cars, said:

We are thrilled to be working with Slingshot Sponsorship as their unique services complement the ambitious objectives of our brand, particularly now we are part of the Caterham Group.

As a British sportscar brand with the iconic Seven at the heart of our business, I have always felt we have much to offer brand partners, particularly through our motorsport and drive experience operations.  Now, as part of the Caterham Group, we have so much more to offer in terms of value and brand awareness, and Slingshot Sponsorship is the right partner to deliver and leverage the commercial partnerships.

Motorsport is at the heart of Caterham Cars, with the Seven the original ‘race car for the road’; over 700 competitors racing the iconic model today in 11 countries around the world is testimony to this.

The acquisition of Caterham Cars by Tony Fernandes in 2011 and the Caterham F1 Team’s presence in Formula One has propelled the British brand to the forefront of a global audience.

With increased public and media attention from the Caterham brand’s first season in F1 and a recent track record of robust financial results, the company is now looking to further leverage its commercial activities.  Caterham plans to facilitate this through Slingshot Sponsorship’s expertise in building existing assets into commercially-sustainable sponsorship platforms.

Furthermore, Caterham Cars also continues to reinvent motorsport following the recent announcement of a Caterham Motorsport-run karting championship in 2013.

Caterham will design and develop its own F1-inspired kart and thus provide young drivers with the opportunity to take their first steps in a career, in which it will be possible to progress from grassroots racing to the pinnacle of global motorsport. In addition, the organisation of Caterham karting will benefit from the firm’s 26 years of experience in running low-cost, high-value one-make race championships.

Jackie Fast, Managing Director of Slingshot Sponsorship commented,

“Being able to work with a brand that is on the brink of such change and innovation is what we live for at Slingshot Sponsorship.  We cannot wait to begin delivering the creative concepts and brand partnerships that will help project Caterham Cars to a wider audience of new enthusiasts.  The Caterham brand creates exceptionally strong advocates, both in Britain and internationally and we hope to turn this passion for the brand into a more holistic and accessible commercial property that can deliver real value for brand partnerships.”