Formula 1 Synergy

29Sep10

The Formula 100 is a new boys club started to basically connect people in a way never done before. Well, I say never done. What I mean is never done in such open circumstances before.

Whereas business is rumored to be done on a country club golf course or luxury box of a sporting event, the Formula 100 is a similar closed door group. Firstly around 250 of the worlds biggest companies are invested in F1 in one way or another. But the issue is that if the sponsors of one team are even thought of to be talking to another team it could land people in serious hot water.

Say the director of company A sponsors team A. But he used to go to university with the manager of say team B. They happen to bump into each other staying at a hotel for the Grand Prix the next day and share a whiskey. A photographer snaps this and suddenly the director has a lot of explain to do to team A. Also the manager of team B has to explain to his sponsors why he was seen with the director of team A’s sponsors. Were they striking up a deal behind their backs?.

When you consider how intertwined the business world is and how often these people get together each year these situations arise quite frequently. But the silly thing about it is that the F1 paddock is the perfect opportunity to create new friendship and business deals. It’s like taking someone to a strip club and photographing them every time they go near a stripper, then showing it to their wife.

So a guy called Chris Sylt along with a couple of other powerful business people decided to create a club, where you could go to the strip club and talk to as many strippers as you wanted without ever being in fear of the wife seeing. this is the Formula 100 club.

They advise each other on strippers, ways round telling the wife, questions they have about strippers, and even ways to make the most of their stripper money. But this is not the main draw to the Formula 100 club. It is essentially an age old business trick. The Formula 100 club is basically a meeting place for non F1 deals. It gives some of the biggest companies in the world a face to face meeting with competitors and future partners. For instance.

Etihad Airways based out of Dubai sponsors Ferrari. Sheikh Hamed their chairman signs up to the Formula 100 club. The Sheikh goes to the clubs meeting and is put in touch with a guy from a company called Medion AG. Who just happens to spend millions a year sponsoring Force India. What’s so important about that? Well Etihad does luxury seating on their planes and all the seats have built in TVs. Medion just happen to make those exact TVs. They also happen to make compact refrigeration which by the way would be perfect for storing all the food and drink on the planes. They arrange another face to face meeting in a couple of weeks as the Etihad chairman is always bitching about the cost of the TV on his planes.

While the Sheikh is there he also mingles round and has a chat to the chairman of Certina, a Swiss based watch company who sponsor Suaber F1. But these aren’t just any watches. These are some of the finest watches in the world. No better product would go nicely in the onboard duty free magazine for one of the richest airlines in the world. They agree there and then to meet the following day with a range of watches and prices and potential sales figures.

So he is rather happy with himself he could have made 2 deals in one evening. But no wait there’s more, as the Sheikh orders another drink he is introduced to Chairman Franz Humer. Who is there on behalf of Diageo the owners of Johnnie Walker Whiskey, the sponsors of McLaren. Mr Humer informs the Sheikh he has been waiting all evening to bend his ear about something. He makes a quick but tasty offer to the Sheikh to supply his first class lounges and his planes with cheap soft drinks and alcohol. He is willing to undercut his current suppliers. The Sheikh has never heard of Diageo and wants to know some of his brands. This is one of the worlds most luxury airlines, only the best shall grace its menus. SO Mr Humer informs him he can supply the following brands which he owns:
Smirnoff, Gordon’s Gin, Captain Morgan, Bulleit Bourbon (Note from Brucie Thoughts. Bulleit is my all-time favourite whiskey….. love it ) Johnnie Walker, Buchanan’s, Cardhu, Justerini & Brooks, a further 13 whiskeys, Guinness, Red Stripe, Kaliber, Archers, Pimms and 24 different wine brands.

The Sheikh leaves the Formula 100 meeting happy he has met and discussed with the chairman of 3 different companies the possibility of a business deal. It didn’t need millions spent on entertaining clients and bribing low level directors. All it needed was a handshake and introduction for the bigwigs of 2 companies that have something to offer each other.

That is the main draw of the Formula 100. What’s in it for the f1 teams I hear you say? Well to get into the Formula 100 you have to sponsor an F1 millions a year. Increased revenue for the sport and the teams and Bernie Ecclestone don’t get his greasy mitts on it.

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Tags: bernie eccelstone, diageo, etihad, f1. formula. formula 1, ferrari, formula 100, johnnie walker, mclaren, medion, swatch