With the 2025 Formula One World Championship concluded—Lando Norris clinching the title by two points at the final race in Abu Dhabi—attention now turns to 2026 and a period of major change.
New technical regulations will bring lighter, more compact cars with reduced wheelbase and width, plus active aerodynamics replacing DRS. The grid will also be reshaped as Cadillac joins as Formula 1’s 11th team and Audi takes over and rebrands Sauber, fundamentally altering both the competitive and commercial dynamics of the sport.
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Cadillac’s 2026 entry triggers a $450 million anti‑dilution fee, distributed among the 10 existing teams to compensate for revenue being shared across an expanded 11‑team grid. Audi, by acquiring Sauber rather than adding a new entrant, avoids this fee but must still commit substantial capital to transform the outfit into a full works operation.
Both manufacturers face significantly higher operating costs under the 2026 cost cap era—particularly around labour, facilities, and technical development—at the same time as they pursue increased commercial revenues and sponsorship to underwrite these investments.
Commercial ambitions of Cadillac and Audi
Cadillac’s F1 entry is built around a distinctly American identity in a championship long dominated by European manufacturers. Its strategy centers on U.S.-based prestige partners—such as spirits brands like Jim Beam and fashion labels like Tommy Hilfiger—to create an “authentically American” proposition that appeals domestically while projecting U.S. performance and lifestyle values globally.
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By GlobalDataCadillac is backing this positioning with a strong geographical footprint. Its new headquarters in Fishers, Indiana, combined with operations in Charlotte, North Carolina; Warren, Michigan; and Silverstone, U.K., blends U.S. automotive and industrial heritage with access to Europe’s established motorsport ecosystem.
To deepen its technical credibility and attract technology-focused sponsors, Cadillac is investing in its own power unit program via GM Performance Power Units LLC, aiming to be perceived as both a marketing platform and an engineering leader.
Audi is taking a different route, leveraging its established global premium image through the takeover of Sauber and its evolution into a full works team in 2026. Audi has already secured high-profile partners, including Adidas (apparel) and Visit Qatar (principal partner), with its commercial strategy led by agency WWP.
The focus is on international brands aligned with Audi’s values around technology, innovation, and sustainability. With power units developed in Germany and chassis and race operations in Switzerland and the U.K., Audi presents a strongly European engineering narrative for sponsors.
Commercial obstacles for both new teams
Both Cadillac and Audi face structural challenges typical of new or restructured entrants. Lack of recent results and limited brand visibility on track make it harder to secure top-tier sponsors, who value guaranteed exposure and association with success.
Audi inherits Sauber’s recent performance record, which has been modest and often pointless, and must rapidly demonstrate competitiveness to justify premium positioning. Cadillac, as a brand-new team, must prove its technical substance—particularly in power unit development—to reassure sponsors that their investment will yield meaningful visibility and credibility.
Media rights and distribution add another layer of uncertainty. From 2026, Apple TV will hold exclusive U.S. F1 rights in a five‑year, $700 million deal, replacing ESPN. While the move boosts F1’s media revenue and strengthens its streaming footprint, teams must ensure sponsor branding remains highly visible across Apple’s ecosystem and other digital, social, and event channels to offset reduced linear TV exposure.
Operating models also create cost pressures. Audi’s labour and facilities in Switzerland, and Cadillac’s transatlantic setup spanning the U.S. and U.K., are inherently expensive. While the cost cap provides some relief on performance spending, significant outlays remain uncapped—particularly marketing, hospitality, partner activation, and senior talent costs. These overheads increase the importance of securing substantial, long-term sponsorships early.
Audi Formula Racing GmbH – Current Sponsorship Portfolio Sponsorship Value (US$M)
| Announced Date | Brand | Brand Industry | $ (annual) |
|---|---|---|---|
| 30-Jul-25 | Revolut | Financial services | 50 |
| 29-Nov-25 | Visit Qatar | Travel & tourism | 25 |
| 10-Sep-25 | adidas | Clothing & accessories | 20 |
| 15-Jul-24 | Aral | Energy & utilities | 8 |
| 08-Dec-25 | Paulaner | Beverages | 2 |
| 01-Dec-25 | Perk | Travel & tourism | 2 |
Audi’s sponsorship portfolio currently totals $107 million per year. Revolut’s $50 million agreement is the clear cornerstone, accounting for nearly half of that income and providing crucial funding for facilities, personnel, and development programs ahead of 2026.
In a cost‑capped environment, this non‑performance budget is essential for brand-building, partner activation, and commercial staffing. Adidas ($20 million) and Visit Qatar ($25 million) add powerful lifestyle and destination narratives that reinforce Audi’s premium positioning.
Aral, Paulaner, and Perk broaden the mix across energy, beverages, and travel, ensuring category diversification even if none approach Revolut’s strategic scale. Taken together, Audi enters 2026 with a robust, well‑balanced portfolio underpinned by a single flagship deal that anchors its commercial strategy.
TWG Cadillac Formula 1 Team Limited – Current Sponsorship Portfolio Sponsorship Value (US$M)
| Announced Date | Brand | Brand Industry | $ (annual) |
|---|---|---|---|
| 04-Jun-25 | Tommy Hilfiger | Clothing & accessories | 2.5 |
| 17-Sep-25 | Jim Beam | Beverages | 1.5 |
In the early stages of building its sponsorship portfolio, Cadillac has prioritized American lifestyle brands, a choice that aligns with its U.S.-centric strategy and helps establish a clear thematic positioning around American style and heritage.
Securing a major U.S. partner in fintech, premium beverages, consumer technology, or entertainment would represent a significant step toward generating the funding required for power unit development, global facilities, and the recruitment of top-tier engineering and commercial talent.
Cadillac’s appeal to prospective partners is strengthened by its U.S. footprint in Indiana, North Carolina, and Michigan—regions synonymous with automotive, tech, and industrial excellence—as well as by the opportunity to use F1 as a global platform for U.S. prestige brands seeking international reach.
What the 2025 F1 sponsorship landscape reveals for Audi and Cadillac
In 2025, Formula 1’s commercial ecosystem was dominated by a handful of core verticals: financial services and fintech, enterprise and consumer technology, travel and tourism, energy and utilities, premium consumer goods, fashion/apparel, and betting/gaming in markets where regulation permits.
For Audi and Cadillac, these sectors represent both key hunting grounds as both teams look to develop their sponsorship portfolios for the start of the 2026 season. Financial services and fintech remain among the fastest‑growing segments, as digital banks and payment platforms seek global trust and visibility—Audi’s Revolut deal is a prime example.
Technology sponsors (cloud, AI, semiconductors, enterprise software, cybersecurity) are increasingly using F1 to showcase innovation, performance, and data capabilities. Travel and tourism, particularly state-backed tourism boards and airlines, continue to generate high‑value, long‑term partnerships that align well with the sport’s global calendar.
Breaking Into a Saturated Grid
GlobalData’s The Business of Formula 1 2025 report shows that F1 sponsorship value is increasingly concentrated among the front-running teams, making the market both crowded and highly competitive. Red Bull operates with 35 sponsors and generates an estimated $302.72 million annually, while Mercedes has 24 partners worth about $228.3 million.
Ferrari currently leads the grid commercially with 38 sponsors and $408.91 million in annual sponsorship revenue. McLaren combines the largest partner portfolio—49 sponsors—with an estimated $251.44 million per year. Overall, these top teams typically carry around 25–40 partners (with McLaren a clear outlier on volume) and consistently generate more than $200 million annually in commercial revenue.
Many blue-chip brands across financial services, tech, energy, telecoms, beverages, and fashion are already tied to these established platforms, narrowing the pool of unaligned prospects. Audi and Cadillac must therefore displace incumbents or win underexploited categories: Audi via European technology/sustainability; Cadillac via American lifestyle, culture, and performance—backed by measurable return on investment.
Conclusion
In summary, Audi and Cadillac enter Formula 1 at a moment of regulatory, media, and commercial transition, facing intense competition for sponsors in a saturated grid.
Their success will hinge on translating clear, differentiated brand narratives into flagship partnerships, proving early technical and sporting credibility, and maximizing sponsor visibility within an evolving and increasingly streaming-led F1 media ecosystem.
