Mercedes move a big boost for Lewis Hamilton the brand
28 September, 2012
Sep.28 (Reuters) Former world champion Lewis Hamilton will get an even higher global profile and greater freedom to exploit it after joining the Mercedes Formula One grand prix team.
The Briton, 27, will leave McLaren and drive with Mercedes from next season, in a three-year deal. He replaces German Michael Schumacher in a move that will make him a public face for one of the world’s most famous car brands.
Hamilton is managed by the XIX Entertainment company that has helped to make former England soccer captain David Beckham, now playing for LA Galaxy, into a figure whose fame extends beyond his sport.
“Mercedes are a far bigger brand than McLaren globally,” said Joel Seymour-Hyde of sports marketing agency Octagon.
“The opportunities for him to have the Lewis Hamilton brand exposed and to become a figurehead for the company are that much greater,” he added.
Hamilton, the first black driver to win a grand prix, features regularly in the gossip pages because of his relationship with U.S. singer Nicole Scherzinger. His looks and image, clean cut yet moody, make him a natural for brands wishing to connect with a youthful audience.
However, Forbes estimates that only $3 million of that figure came from endorsements, compared with $10 million earned by Schumacher in that way.
McLaren exercises tight control over its drivers’ commercial agreements to ensure that they do not come into conflict with its major sponsors.
“With Mercedes, part of the deal will be giving him much more flexibility over the commercial deals he can do for himself,” said Seymour-Hyde.
The risk for Hamilton is that Mercedes fail to deliver a car that compete at the top of the sport. Mercedes are in fifth place in the 12-team constructors’ championship, while McLaren is second, behind Red Bull.
McLaren, whose cars are powered by engines supplied by Mercedes, have replaced Hamilton with Mexican driver Sergio Perez, who is only 22.
Perez will drive alongside Briton Jenson Button, another former world champion, for McLaren next season.
The recruitment of Perez is seen as a shrewd piece of business by McLaren, a team based in southern England who have branched out into technologies associated with motor sport.
“If Perez is competitive, it opens up a lot of opportunities,” said Danny Townsend of sports brand analysis company Repucom.
“Mexico is a big market and for McLaren to be able to leverage that is a huge opportunity,” he added.
Vodafone is the title sponsor for the McLaren team under an agreement that runs until the end of next season. The mobile phone company does not have operations in Mexico.
Perez has been backed throughout his career by Carlos Slim Domit, eldest son of the world’s richest man and head of telecoms giant Telefonos de Mexico (Telmex).
McLaren team boss Martin Whitmarsh said there were no side deals associated with the signing of Perez.
“I’m not saying that ultimately there may not be other fresh partners coming forward because of it but that wasn’t the motivating force,” he told reporters.
“We’ve got a tremendously strong partner line-up of investors, that’s solid and we are confident and comfortable with that,” he added.
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