After an up-and-down year in F1 where they lost a major sponsor, the only American F1 team on the grid, Haas has found something to smile about. The North Carolina-based team made an announcement about their new title sponsor, MoneyGram ahead of the 2022 United States GP at the Circuit of The Americas (COTA).

The Haas team and their troubles with sponsorship

Haas F1 is an American-licensed team that started racing in F1 in 2016. It is owned by Gene Haas, the machine tools industrialist and magnate. He has prior experience in motor racing teams as well as he co-owns the Stewart-Haas Racing team in NASCAR along with Tony Stewart.

Initially, Haas did not have a title sponsor other than Haas Automation but in 2021, Uralkali – a potash fertilizer-producing company – sponsored the team. However, the company owned by the Russian billionaire, Dmitry Mazepin, was forced out due to the Russia-Ukraine conflict in 2022.

The exit of Uralkali’s money led to the drying up of coffers at the team, possibly affecting their chances to improve their position and competitiveness on the grid.

MoneyGram swoops in with a multi-year deal

MoneyGram International Inc. is a NASDAQ-listed company based out of Dallas, Texas. The American company specializes in cross-border P2P payments and money transfers. It is one of the biggest players in the segment. The company was acquired by Madison Dearborn Partners for $1 billion in a full-cash deal, in February 2022. It is valued at $1.71 billion in October 2022.

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MoneyGram has agreed to a multi-year title sponsorship deal that will provide the American team with a much-needed influx of cash. The expectation is that the fresh flow of cash will help in greater R&D investments for the car, and by extension, better performance.

What was the reason behind entering F1 for MoneyGram?

Their deal with Haas is not the first sponsorship deal the payments giant has made in the sports industry. They have previously had deals with ICC Cricket and FC Dallas, the Major League Soccer team.

Talking to Reuters, CEO of MoneyGram, Alex Holmes, explained the reasoning behind the deal. He said, “We like to think of ourselves as one of the fastest ways to send money and F1 being one of the fastest sports in the world we think it is a fantastic overlap and extremely unique opportunity for us.”

“When you think about Haas itself they are a bit of a rock and roll kind of team and under Gene’s leadership and partnership with Guenther (Steiner, team principal) I think they have created a really compelling team. Many people might think they (Haas) are kind of underdogs and absolutely that’s what’s fun about it – people want to root for them, they want them to be successful and I think it is great partnership.”

But for the company, the biggest reason to enter the F1 market was the attraction F1 has at the moment because of the popular Netflix docuseries, Drive to Survive. The company will also reap the benefits of the first time F1 will have three GPs in the United States, with Austin, Miami and Las Vegas confirmed as destinations for the 2023 season.

Holmes said “I think it was a combination of (things) a changing of the framework around the brand Formula One, the introduction of some of the new races, and clearly the association with Netflix’s ‘Drive To Survive’ that’s really brought in a completely different demographic.

“The Vegas race I think is a game changer. I think Miami has a lot of glitz. Races that have been so historic, so iconic for so many years, like Monaco, hold that luster, but to add something like Las Vegas I think is like Monaco modernized on steroids. It is an opportunity to make the sport just come alive in the U.S. market.”

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The Haas F1 team comes from strong roots with its sibling team, Stewart-Haas Racing having won big prizes in NASCAR. Haas F1 on the other hand, has not been able to compete with its average WCC position since 2016, being between 8th and 9th. It hit rock bottom in 2021 when it finished the season with 0 points and was in the last position in the WCC.

Guenther Steiner and Gene Haas will be hoping this new injection of funds will help them provide competition in at least the so-called midfield.