Sponsors sign up for F1 China debut

Sinopec -- the largest oil company in China -- is the 'naming sponsor' for the race for the next three years. While the deal between HSBC and All Sports, an agency re presenting Formula One management in selling commercial rights for the 18-race circuit, has yet to be made official, sources said the agreement could stretch up to five years. According to Charley Kan, executive director at Mediaedge:cia, China Central Television (CCTV) 5 and Shanghai TV sports channel have won the rights to broadcast the race in China. "CCTV 5 sports channel coverage penetration is huge, and in most cities it is over 80 per cent. Signing on Sinopec is a big win for CCTV, because according to the rate card Sinopec spent RMB 88 million (about US$10.6 million) on the naming rights," said Kan. "It's hard to say how much they spent on the bidding, but there will be advertising, sponsorships and programming surrounding the race on CCTV, so there is huge opportunity for the channel." He added that the organisers had yet to finalise advertising and sponsorship packages. The F1 race is being heavily promoted through outdoor advertising, online channels (sohu.com, sina.com and tom.com) and TV spots across Shanghai. "It's a new sport for China, but they are really pushing it and F1 is already building up hardcore fans in China," he said. However, Kan added that the issue of tobacco advertising in F1, which depends heavily on cigarette manufacturers' sponsorships for revenue, would need delicate handling. "Cigarette advertising is a sensitive topic and the officials don't want to talk about it. I imagine most brands will work around it. Big banners won't be permitted at the track, but they can probably get away with small logos, as long as it doesn't have the word 'cigarette'," Kan added. The global TV audience figure for an average F1 race is reported to be 39 million.