Formula 1 has announced a multi-faceted sponsorship and data rights partnership with sports marketing company Interregional Sports Group and sports data firm Sportradar. The deal enables live in-race betting and sets the stage for F1 to partner with official betting brands.
CNBC reports the deal is worth $100 million. The top-tier racing league will begin to integrate regionalized, branded on-screen graphics, physical and virtual trackside signage, and other forms of advertising across F1’s digital and social platforms.
“As part of the deal, ISG will have the right to sub-license Betting Partnership Rights to select betting brands around the world, subject to regulations,” according to a press release published on Formula 1’s website.
The deal allows Formula 1 to leverage Sportradar’s Fraud Detection System, which will be used to prevent betting-related corruption. Sportradar also maintains partnerships with the NFL, the NBA, MLB, and the NHL.
“We are also hugely excited to work with ISG and Sportradar on making the most of the data which is generated at every Grand Prix,” said Sean Bratches, managing director, of commercial operations at Formula 1, in the press release. “This deal allows us to develop new and exciting ways for Formula 1 fans around the globe to engage with the world’s greatest racing spectacle, while ensuring integrity with best practice oversight from Sportradar.”
F1’s parlay into sports betting comes four months after the U.S. Supreme Court ruled to remove the federal ban on sports betting. Before selling Formula 1 to Liberty Media for $8 billion in 2016, former F1 CEO Bernie Ecclestone argued a potential sports gambling partnership would tarnish F1’s image. “I looked into gambling three or four years ago,” he said in 2016, according to CNBC. “But in the end the gambling concept was not found suitable.”
SportTechie Takeaway
Sports betting has introduced a massive new revenue stream for sports leagues now that states have the power to implement their own legislation. A Nielsen report recently concluded that the NFL could profit $2.3 billion a year due to wide-scale, regulated sports betting. These gains are mostly attributed to the higher spending from betting operators related to advertising, media, data rights, and sponsorship fees, as well as the audience viewership increase expected to happen as a result of real-money wagering.
Sportradar is a European-based company but sold a minority stake to two North American investors in July. Before this deal with F1, Sportradar previously marked expansion into the U.S. market through its partnership with AmTote to launch a full-service sports betting platform.