Spa Francorchamps in trouble after ING's decision?

As the Dutch bank ING, title sponsor of the Renault Formula One team and several Grands Prix, decided to cut back on its F1 sponsorship, the ING Belgian Grand Prix starts to fear for a huge financial deficit. In 2007, the GP at Spa-Francorchamps suffered a loss of €3,1 million and in 2008 a loss of €3,8 million. Due to the financial crisis and the decision made by ING, the organisers of the race fear an even bigger loss in 2009.

André Maes, one of the organisers of the Belgian Grand Prix, said: "Involving sponsorship, we have nothing to fear. We have no contract with ING, but with All Sports Management that organises the publicity of all Grands Prix. The thing I do fear is that ING will not buy as many tickets as they did in the past. In 2008 they bought 3000 tickets for their employees and clients." In order to break even, the GP at Francorchamps should attract 80.000 visitors. Last year, 63.000 visitors showed up at the famous race track in the Ardennes. Due to the global financial crisis and the decision of ING, the number of spectators is expected to decrease which would led to an enormous deficit. The 2009 Belgian Grand Prix takes place on 30 August.

Source: f1technical.net

ING cutting back on sponsorship

Renault's primary sponsor, ING, has announced it will be cutting back on its sponsorship of Formula One. The insurance conglomerate is set to report heavy losses for 2008, and are looking to decrease the costs of their operations. The measures announced to achieve this include the laying off of thousands of workers, as well as a reduction in F1 sponsorship.

"ING will cut operating expenses by EUR 1 billion in 2009," the company said in a statement. "The structural expense reduction will lead to annual savings of approximately EUR 1.1 billion from 2010 onwards. Of the cutback, 35% will come from a reduction of the workforce by approximately 7000 full-time positions in 2009.

"The remainder of the expense reduction comes from decreasing costs for our head office, marketing, the Formula One program, consultancy, third-party staff and the renegotiating of certain contracts with IT-vendors. Of the total expense reduction, EUR 650 million will be realized in Banking and EUR 350 million in Insurance."

As well as being Renault's title sponsor, the Dutch-based company also use trackside advertising and are sponsoring races in Australia, Belgium, Hungary and Turkey this year.

Source: Planet-f1.com