Formula One ends betting embargo with $100m sponsorship deal

Formula One has reversed its longstanding opposition to gambling sponsorships , after owners Liberty Media agreed terms on a contract thought to be worth $100m over five years.

Liberty Media’s agreement with London-based marketing agency Interregional Sports Group (ISG) means betting firms can market their brand on F1 racetracks for the first time in almost 40 years, ending a blanket ban enforced by previous F1 owner Bernie Ecclestone.

Sponsors will be permitted to have their brands shown “trackside” through electronic billboards and on-screen graphics during televised races.

The deal marks one of the biggest commercial moves in F1 history following a strategic shift for the sport under Liberty Media, the group which acquired the racing series in 2016 for $8bn.

Sean Bratches, managing director of F1’s commercial operations, told the Financial Timesthat the deal was a fan-centric move as viewers regularly experience gambling sponsorship in other sports.

“There’s an understanding that sponsorship injects economics into the sport that improves the sport to the fan,” Bratches told the Financial Times.

“You have to balance that with how you serve fans. This is an opportunity that serves both of those masters,” he added.

ISG will pay an upfront fee to Liberty Media with the marketing agency hoping to profit on the deal by striking a series of separate agreements with gambling operators in global markets.

F1 will also work with Sportradar to monitor betting-related fraud.