September has arrived, the summer break is over, and many brands are ready to evaluate and discuss their sponsorship strategies. However, navigating your sponsorship renewal in Formula 1 and other major motorsport series should not begin when the rights holder submits a new proposal. By that stage, available inventory, commercial expectations and internal budgets may already be taking shape. The most effective renewal processes begin much earlier and are managed throughout the partnership.
The first step is to establish clear objectives from the outset. Brands should define what the sponsorship is expected to achieve across areas such as awareness, customer engagement, hospitality, content, employee engagement and business development. Without that foundation, renewal decisions can become influenced by personal relationships or headline exposure rather than genuine business value.
Performance should then be reviewed regularly. Waiting until the final year to collect results makes it difficult to build a credible internal case. Sponsors should track which contractual rights are being used, what outcomes they generate and where additional value could be created.
© McLaren Racing /Mark Thompson/Getty Images
Edoardo Martorelli, Founder and Executive Director of Drive Sports Marketing, recalls how this approach helped strengthen a partnership during his time working for the Red Bull-owned Formula 1 team now competing as VCARB:
“I was managing a partner entering the final year of its contract. My objective was not only to renew the partnership, but also to increase its commitment for the following years.
“During the season, I began providing a small number of additional assets. Nothing major, but carefully selected opportunities that I knew would make a meaningful difference. By September, the partnership had exceeded its KPIs.
“I simply said: ‘Do you know why your KPIs are looking so strong? We have delivered more than your contract required. You have already seen that investing more with us enables you to extract greater value from the partnership.’”
© Getty Images/Red Bull Content Pool
This example underlines an important principle: a renewal proposal is more convincing when the partner has already experienced the value of an expanded relationship. Carefully chosen additional assets can demonstrate what increased investment could deliver, rather than leaving the sponsor to assess that potential only on paper.
Formal renewal planning should ideally begin at least 12 months before the agreement expires. This gives the sponsor time to reassess its objectives, consult internal stakeholders and determine whether the existing partnership remains the best available platform. Marketing, sales, communications, HR and senior leadership may all evaluate it differently, so their priorities should be aligned before negotiations begin.
The agreement itself should also be reviewed critically. Frequently used rights may need to be expanded, while assets delivering limited value can be removed or exchanged. Sponsors should enter negotiations knowing their essential rights, preferred additions, total budget and acceptable compromises.
© Mercedes AMG F1/Clive Rose/Getty Images
Benchmarking is equally important. Even when the intention is to renew, the proposed fee and rights should be compared with relevant alternatives. This provides the market context needed to determine whether the new terms remain reasonable and competitive.
A successful renewal is therefore not simply an extension. It is the result of consistent partnership management, clear evidence of performance and a shared understanding of how the next phase can create greater value.
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