Ferrari F1 lost two premium sponsors and lost $55 million (about 7.277 billion yen), RacingNews365 reports. An announcement is expected soon.
RacingNews365 reports that Ferrari and cryptocurrency firm Velas have decided not to continue their partnership after its first year. Chip semiconductor company Snapdragon’s logo has also been removed from Ferrari’s partner list. Both were ranked as premium sponsors.
Ferrari announced a long-term deal with cryptocurrency firm Velas in late 2021, with branding on the car and the driver’s racing suit.
However, sources close to both companies say Ferrari failed to comply with the terms allowing Velas to create NFT images, while Velas was in financial breach. A lawsuit is currently being considered by the parties.
The cryptocurrency world has been in turmoil lately, with Mercedes F1 team partner FTX declaring bankruptcy in December.
Mercedes F1 removed all FTX branding from its brand assets in November. At the time, Mercedes F1 team principal Toto Wolff suggested that most F1 teams could be similarly affected.
“Every team has such sponsors, and so does the F1 organization itself, so everyone will be affected,” Wolff said.
As for Snapdragon, RacingNews365 reports that the contract termination is mutual and that a joint statement will be issued in due course.
Ferrari CEO Benedetto Vina joined the company in July 2021 from semiconductor rival ST Micro, but it’s unclear if the two are connected.
Snapdragon is likely to move to another F1 team and could return to Mercedes after semiconductor parent company Qualcomm and Mercedes recently announced a major ‘cockpit’ electronics joint venture.
The Velas and Snapdragon losses mean Ferrari will have to close a large hole in its portfolio, with the Velas deal worth $30 million a year and Snapdragon’s contribution in terms of cash and technical support. It is said to total $25 million. Together, the two brands account for about a quarter of Scuderia Ferrari’s commercial income.
Ferrari will announce the 2023 F1 machine on Valentine’s Day on February 14, but has not yet revealed the location.
Charles Leclerc and Carlos Sainz make up the Scuderia Ferrari driver pair for the third year in a row, but this season will be replaced by Sauber (Alfa Romeo) following Mattia Binotto’s resignation from the team at the end of December 2022. He was replaced by team principal Frédéric Vasseur.
Category: F1 / Ferrari / F1 sponsor