Formula One: Revving up the sponsorship engine

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Formula One: Revving up the sponsorship engine

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Formula One

Revving up the sponsorship engine

Reiterate Rating: BUY | PO: 115.00 USD | Price: 98.50 USD

Sponsorship firing on all cylinders 06 July 2026

We continue to see significant runway for growth in Formula 1’s sponsorship business Equity

over the next several years, driven by: 1) the addition of new brands and categories, 2)

renewals of existing partnerships, and 3) growth of F1’s licensing business. Importantly, Key Changes

FWONK remains disciplined in limiting the number of global partners, which should

support favorable pricing dynamics and enhance the long-term value of sponsorship (US$) Previous Current

inventory. At the same time, management has opportunities to further monetize key Price Obj. 105.00 115.00

verticals by introducing multiple partners within a category (as F1 did in Financial

Services) rather than maintaining an exclusive sponsor. We also view licensing as a BrentResearchNavon,AnalystCFA

compelling long-term brand and revenue opportunity, with partnerships such as KitKat BofAS

+1 646 855 3827

and Barilla (among others) extending F1’s reach to new and younger audiences while brent.navon@bofa.com

creating an incremental revenue stream. While still early, we believe the licensing Jessica Reif Ehrlich

business could become several times larger than it is today. Research Analyst

BofAS

Keeping the business on track +1jessica.reif@bofa.com646 855 2921

With the calendar committed for the next few years, FWONK can be deliberate in how Peter Henderson

F1 expands into new markets (e.g. Africa and India). Importantly, we expect FWONK to ResearchBofAS Analyst

actively develop local fan bases as a prerequisite to bringing a race into any specific +1 646 855 4564

peter2.henderson@bofa.com