The sponsorship landscape has "changed significantly" for Formula 1 teams over the past decade or so and it has been "a change for the worse for most involved," according to Michael Searles of CITY A.M. Revenue from sponsors has decreased by a quarter since '07, falling from $1.01B to $772.5M last season, according to data compiled by Formula Money. In fact, there has been a "steep decrease" in sponsorship income over the past five years. Having "rallied" between '11 and '13 to more than £1B again, it has "since plummeted" by more than 25%. A key factor in the overall decline has been a loss of funds from the telecom and technology sector, which peaked at $267.3M in '07 but had decreased to $163.2M by '10. It has "suffered since Vodafone withdrew," having had spells with Ferrari and McLaren. The company paid the former $40M-per-year until teaming up with the latter in '07, which it paid between $77M and $92M-per-year until '13, when it "abandoned the sport altogether." Similarly, Renault had backing from Spanish telecom Telefónica worth $25M annually until '07. While there has been a "significant revenue reduction in some sectors," others have "stepped up to take on a share of the load." Beverages have been a "key part of that," increasing by 429% between '05 and '17. Some of that increase "can be owed to Martini," which has been the Williams team's title sponsor since '14 in a deal worth $115M over five years, although that will not run into '19 after the brand decided to pull out of F1 (CITY A.M., 12/13).
