Finding Motorsports Sponsorship to Go Racing Is About to Get A Lot More Difficult
Before we talk costs…
Let’s talk revenue.
If you're a driver or team navigating the rising costs of racing — whether from tariffs, logistics, or inflation — it's more important than ever to approach the commercial side of motorsport with strategy and confidence.
That’s exactly the rationale behind the Motorsports Sponsorship Accelerator — a course designed to help you understand your value, pitch effectively, and build lasting partnerships with sponsors. Learn more here.
The current cost environment in motorsports
Going to the races has always been expensive but relatively recently a convergence of factors both internal and external to motorsports have caused costs to soar tremendously, perhaps even unsustainably.
Cost escalations in racing can broadly be attributed to 3 components, regardless of geography:
Nominal inflation: This is the inflation deemed “good” by central banks because an environment where prices stagnate or decline is highly destructive for an economy (large Western economies tend to aim for nominal inflation of around 2% per year in “normal” times
Regulatory inflation: These are escalations in costs due to changes in regulations for any number of reasons, ranging from improving driver safety to improving the quality of the on-track product to increase fan engagement. In more general terms, this inflation would be associated with what are called “switching costs” and it’s worth noting that these costs can occur when any change happens, even in the case where the desire is to downtune performance. Such a switch - in fact, any switch - requires time spent researching, manufacturing and/or procuring and then implementing, which all involve additional costs.
Market inflation: If the grids at series such as the 24 Hours of Le Mans and the European Le Mans Series are any indication, racing as an activity (as opposed to a spectator sport) has become highly popular. We can hypothesize that this has something to do with an increasing concentration of wealth, but the cause for this popularity is not important for this discussion. What is important is that this creates real bottlenecks for critical racing components (chassis, engines, etc) and services for which supplies are short, due to manufacturing capacity in the general market or because the number of manufacturers has been selected and restricted by a series’ governing body. In this paradigm, as more teams want to enter racing series, costs and lead times will increase
We should also add that for series operating primarily in the US, the recent announcement of tariffs on goods from every country is sure to jolt cost structures which may already be very fragile.
Click the video for an in-depth look at actionable steps that drivers and teams can take to secure their sponsorships during economic downturns.
The difficulty of securing sponsorships in motorsports
Having established the difficulty of the current cost environment, we should now turn to the revenue side, and it should be no surprise that this is also very challenging.
Due to the inherent costs associated with racing, finding support to go racing is nearly as old as the activity itself, and it’s easy to find stories and anecdotes of how all-encompassing this can be.
Just one example is an interview with Formula 1 journalist Louise Goodman. When asked about how drivers approach having to raise funds nearing 7 figures to fund just one season of racing, this was her answer:
“That’s the job. If you ask any racing driver that’s the main part of their job.”
We are sure that you have many more such accounts!
Tying these two aspects of a racing team’s cost structure together, it is only logical to conclude that finding sponsorships is only going to get more difficult.
Indeed, much more difficult.
The two headwinds to sponsorship acquisition
As costs increase, the cost for teams to make it to the track will increase. As this happens, it follows that the cost for a seat should increase as well.
Imagine that you had a plan to secure an amount to fund a season, and all of a suddent, that cost goes up 10%-20% (hypothetically), perhaps more.
How would you approach that problem?
More critically, we have to put ourselves in the shoes of sponsors.
Whereas they might have been inclined to provide sponsorship to a driver or race team, are they as likely to scale - or even maintain - that support in a case where, for instance, their business has been greatly disrupted by the implementation of tariffs?
In a difficult operating environment, marketing costs are usually among the first on the chopping block
During an economic downturn, many companies instinctively look to cut costs across the board, and marketing is often one of the first areas to be reduced. This is largely because marketing is frequently viewed as a discretionary expense rather than a direct contributor to revenue.
Leadership may see it as something that can be scaled back without immediate operational impact, especially if its outcomes—brand awareness, engagement, and lead generation—are not directly tied to short-term sales metrics. In budget meetings, when faced with tough choices, marketing often loses out to functions perceived as more essential, like production, logistics, or even customer service.
This susceptibility to cuts is also rooted in the intangible nature of many marketing outcomes. Unlike a factory that produces physical goods or a sales team that closes deals, marketing results are harder to quantify, especially in the short term. Without a clear link to revenue—particularly when a downturn is putting immense pressure on financial results—marketing can be seen as expendable.
Compounding this is the common misconception that customers aren’t spending during downturns, so there's no point in marketing to them. This flawed logic often prevails, even though plenty of data shows that market share gains are frequently won when others are pulling back.
Paradoxically, slashing marketing during a downturn can be one of the most counterproductive decisions a company makes.
Marketing is a key driver of visibility, trust, and ultimately sales. When competitors retreat, the noise in the marketplace diminishes, giving bold brands an opportunity to stand out and claim a greater share of voice. Moreover, ad rates and sponsorship costs often decline during downturns, making it more cost-effective to reach audiences. Companies that maintain or increase their marketing spend during tough times often emerge stronger, with greater brand recognition and customer loyalty, positioning themselves for accelerated growth when the economy rebounds.
Downturns can present opportunities if they are approached strategically
To summarize the situation that drivers and teams will face (or may already be facing):
Costs are high and will rise further due to increasing popularity of racing and the effects of tariffs in some locations
We hypothesize that this will cause the costs associated with a racing seat to increase, meaning drivers and teams will have to work harder for sponsorships
At the same time, existing sponsors whose businesses are also impacted by tariffs and tough economic conditions are likely to pull back support, on the premise that marketing activities are discretionary and should be cut to maintain cash flow
This is not an ideal situation to have to manage when you also have to focus on shaving tenths off your lap times!
While the situation described is by no means easy, there are several ways teams and drivers looking to maintain - or even create - relationships so as to make sure they can finish their seasons.
The key point to remember here is that it’s about anticipating and countering competitors’ moves; if they are also set to retrench, this is the time for you and your clients to go on the offensive.
While others pull back, savvy individuals or teams can use this time to stand out and position themselves as cost-effective, creative, and high-return investments. Here are some marketing strategies that can be employed during a downturn:
1. Double down on content creation and personal branding
During a downturn, brands are cautious about where they place their marketing dollars. By creating consistent, engaging, and high-quality content (videos, behind-the-scenes reels, data-driven race recaps, personal insights, etc.), a driver or team can show they own their audience and are building genuine engagement.
Platforms like Instagram, YouTube, and LinkedIn become powerful tools for storytelling and showing sponsors they’ll be associated with a compelling, active presence—without needing massive spend.
Use this content to show not just race results, but value alignment, community engagement, and real-world product integration.
2. Offer more bang for the buck, with data to back it up
Sponsors are under pressure to justify every bit of money they spend, so give them a clear and specific return-on-investment (ROI) argument.
Package your offer around what you can do for them, not just what you need, by highlighting affordable exposure opportunities: B2B intros, activation support, hospitality, or access to niche, loyal communities like sim racing or track day networks.
Data will be crucially important to building your ROI case, so provide analytics—engagement metrics, impressions, lead generation from your content or email campaigns—to show how their brand will perform.
Many teams won’t be doing this, so you can stand out by being more professional and accountable than others. If you can do this consistently, you stand to position yourself not just as a service provider, but rather a trusted advisor that can be called on when help is needed (this is a much stronger position to be in as opposed to having to knock on doors for opportunities…).
3. Position yourself as an agile, low-risk testbed
In a downturn, companies will not want to commit to multi-year, large partnerships.
This is your opening!
Position yourself as a test campaign—a flexible, lower-cost, creative way for a brand to dip into motorsports marketing.
Offer your sponsors and sponsor-prospects the chance to pilot a campaign with you for a few races or one season.
During this pilot program, be easy to work with, fast in producing content, and open to unique activation ideas. This not only makes the budget conversation easier but also gives you a chance to prove your value and scale the partnership later
Concluding thoughts
If you're responsive, and results-oriented, downturns become less of a threat and more of a moment to outmaneuver the competition, not just simply on the track, but before you even reach the starting line.
Vaucher Analytics: Driving financial performance for race teams
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Main image credit: Akbar Nemati via Unsplash