Hollis Sponsorship Bulletin

After weeks of speculation, F1 World Champion Jenson Button has joined Woking-based McLaren on a £6 million a year deal. In doing so, he creates a British F1 dream team alongside Lewis Hamilton, who was F1 Champion in 2008.

The risk for Button is that he will be forced to play second fiddle to Hamilton - who is still regarded as the hotter property, both on the track and in the commercial arena. But for McLaren title sponsor Vodafone, the 2010 season looks like it could be a good one. Internationally, the mobile company will benefit from having two of the strongest and most charismatic drivers on the circuit. And domestically, it will be able to develop an activation strategy which promotes its strong UK associations. 

McLaren’s other sponsors include Diageo, Aigo, FedEx, Hugo Boss, H&R, Hilton Hotels, Mobil, Santander, SAP, Lenovo and Reebok. The question now is whether any Brit-based companies will be tempted to join the McLaren fold.

News regarding the future of F1 World Champion Jenson Button has been changing virtually on a daily basis. Currently driving with Brawn GP, an impasse over pay has led to reports that he may quit and join rival team McLaren.

Whether that happens or not, a decision seems much closer following today’s news that German car manufacturer Mercedes is to take control of Brawn ahead of the 2010 season (which starts in March).

One of two scenarios is possible. Firstly, Mercedes could give Brawn the greenlight to pay Button the £8 million a  year he wants - rather than the £4 million he was on this season. If so, it’s hard to see Button moving to McLaren where he may have to play second fiddle to fellow Brit driver and 2008 World Champion Lewis Hamilton. After all, Brawn’s ingenuity gave Button an unlikely world title.

Alternatively, Mercedes could insist on a driver change which suits its own marketing agenda. That might involve having two German drivers - Nico Rosberg and Nick Heidfeld - in the hope of creating a German World Champion. In that case, the obvious career move for Button would be to join Lewis Hamilton at the McLaren team.

Notwithstanding the risk of a personality clash between the two top Brits, that would make F1 an interesting proposition for sponsors - with the prospect of an all-German and all-British team competing for poll position. Vodafone, for example, is reported to be keen for McLaren to meet Button’s wage demands to get him onboard in 2010.

As part of its commitment to Brawn GP, Mercedes is to reduce its stake in McLaren - though it will continue to supply the team with engines for the next six seasons.

Meanwhile, the Malaysia-backed Lotus F1 team has started the search for sponsors to invest in its return to F1 next season. Possible backers included Malaysian oil giant Petronas - which already has strong links with F1. Lotus is also working with Malaysian airline AirAsia - which is responsible for moving the team’s equipment and personnel to race venues. That tie-in is a no-brainer given that Lotus team principal Tony Fernandes is also CEO of AirAsia.

There’s still some uncertainty about which F1 team World Champion Jenson Button will race with next year. Although Button would like to stay with Brawn GP, his decision to do so depends on the fee that the team are able to offer him.

In his title-winning season, Button took a big pay-cut to race for Brawn. But now he wants his earnings to be more in line with his status on the grid. Brawn would like to oblige - but their ability to do so depends on the calibre of commercial partners that the team is able to bring in.

Current reports suggest that Mercedes is thinking of buying a stake in Brawn - a move which would provide the funds to secure Button’s services. Failing that, he might move to McLaren - which raises the intriguing possibility of him racing alongside Lewis Hamilton. That could represent a mouth-watering combination for a Brit-based sponsor.