At the Sochi stage, "Formula 1" became one sponsorship contract less. The aluminum producer of UC Rusal, Oleg Deripaska, will no longer sponsor the Sochi Autodrome, a representative of the metallurgical company told Vedomosti. "The sponsorship contract [prisoner] expired for one year, it was decided not to renew it," the press service of UC Rusal said. This was confirmed by the representative of the organizer of the Sochi stage of Formula 1 of ANO Rosgone. From other comments, representatives of both sides refused.
In Russia, the competition takes place from 2014. This year, the "Formula 1 VTB Grand Prix" will be held at the "Sochi Autodrome" from 27 to 30 September. The title sponsor of the races is VTB. The amount of the Sochi Autodrome contribution to the race in 2014 was $ 60 million, Izvestiya wrote earlier, in the following years, the payment of the Russian side increased by a certain percentage specified in the contract. Since 2017, the contribution is fully paid by the sponsors of the competition.
With the sponsoring companies, there are different contracts, said the promoter of the Russian stage of "Formula 1" Sergei Vorobyov. Some are sponsors of Formula 1 and own marketing rights (for example, VTB and Lukoil). Some investors are year-round partners of Sochi Autodrome, and their banners can be seen at other competitions.
UC Rusal sponsored the Sochi races from 2015. For three consecutive years, the company entered into contracts for a year. UC Rusal was interested in such cooperation, since aluminum is used in the manufacture of fireballs to facilitate part of the parts, since it is the lightest metal, and alloys from it can give products almost any characteristics, the company representative said. Banners with the logo of UC Rusal were located at the entrance to the Olympic Park, as well as on the circuit, including in the stands.
It is unlikely that the sponsorship of the Sochi races was beneficial for UC Rusal, the head of the commercial service of the ADM-Raceway autodrome ("Myachkovo" racing circuit) Eldar Marchenko believes, such projects are not profitable at all. In 2017 at the motor sport the peak share of the TV audience 4+ was 0.6%, the expert continues, for comparison: the share of the RPL is about 3%. Racing is a niche sport, Marchenko points out.
It's not about the material gain, retorts close to the organizers of the competition man. "Formula 1" is primarily a place where the entire business and political elite gathers, he says. Sponsors have the opportunity to invite partners to competitions, in boxes or in separate places - depends on the package of sponsorship, a person familiar with the terms of sponsorship contracts knows. During the competition, you can discuss all future and potential deals in an informal atmosphere, adds a person close to the organizers of the competition. Races were originally a sport for rich people, and now they are also a platform for negotiations, he notes.
In addition, such as with UC Rusal, sponsor contracts are inexpensive, up to $ 1 million, say two people familiar with the terms of such contracts.
Perhaps the case in the US sanctions, under which the company fell on April 6, said partner of the consulting company Urus Advisory Alex Panin. American residents are prohibited from doing business with sub-investment companies, as well as owning their securities. The prohibition does not apply to non-residents of the United States, but they can themselves be sanctioned for material transactions with such companies. As a result, sales of UC Rusal fell sharply, states Panin. Thus, in April-June 2018, aluminum sales fell 18.9% to 783,000 tonnes compared to the first quarter, which is also down by 21.9% compared to the second quarter of 2017. Revenues for the second quarter of 2018 amounted to $ 2.25 billion, which is also down by 17.9% compared to the previous quarter and by 8.7% in the second quarter of 2017.