Tag Archives: fashion

Money Generated with Branding

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The debate on the huge cost that has the F-1 championship for the teams participating in it takes several years on the table. There have been several changes with respect to tires, duration of the engines and gearboxes, etc., seeking lower costs. In addition, various mechanical or used computers share the basis of other teams in their vehicles. One of the last chapters of this tension is caused by the FIA's intention to limit the budgets of the teams, they really are very high, especially in this time of crisis. The loss of sponsors is another argument that plays into this cut, and there have been several teams, including Renault of Fernando Alonso, who have proposed wage cuts on its pilots. Despite saving measures as freezing the engines, cutting aerodynamics, logistics costs, transportation and accommodation of equipment, annual budgets are still very high, varying according to different sources, but any form of several hundred million euros in the case of the top teams. Budgets that were justified by the advertising they got some of these brands to benefit from sales of their cars (especially if they could show off what a champion of the world) and because many of the technological advances that were achieved were then applied to street cars (ironically, with all the cuts that have occurred in the F-1, now in certain technologies there are many cars as standard equipment than the cars, for example, traction control). However, it remains an enormous amount of money that moves around the game-show, both ticket sales and in television rights, and advertising that moves around the stars of the sport (estimated the seven times champion Michael Schumacher, now retired, still gets about 30 million euros a year by advertising).