DonTirri wrote:the Problem with Tobacco sponsorship isnt that FIA banned it alone, but the fact that Tobacco advertising is banned in a lot of countries, for example the entire EU.
So even if Tobacco company decided to sponsor a team, then all they'd get for the majority of the season would be the car painted in their colors and some odd facsimile of their logo.
Granted, some of those logos were quite iconic in themselves (The Marlboro barcode and the Buzzin Hornets spring to mind)
But in a pure business sense, sponsoring an F1 team isnt viable.
Indeed - although some parts of the EU were slower to implement the tobacco advertising ban (for example, in the UK - of course, the fact that Bernie happened to be rather generous with his political donations to the Labour party in no way helped with the ban being delayed), now that it is across the EU, that would be most of the season where tobacco adverts would not be allowed. More importantly, even if it was outside of the EU, because of the ban on tobacco adverts, you would not be able to broadcast F1 within the EU - and that is the most valuable market for F1.
OK, you might find that team would try to get around it by hinting at the tobacco company involved via their paint scheme, which BAR and Renault did, and Ferrari still do (although Ferrari is a bit more complicated). However, and this is a somewhat ironic point, would the tobacco companies actually be that interested? There was a TV program (called QI - the UK based readers will recognise this program. For those outside of the UK, it is a trivia program which aims to dispel popular but wrong myths, and present the truth (which, often enough, is more interesting then the myth)). Now, that program looked at tobacco advertising as a prime example of how game theory works.
Advertising is very expensive, particularly for a top end team in F1 (that is a given). if everybody else is coming out with their adverts, then normally the relative market share of each company will remain fairly static over a short to medium length of time, but each company will have to expend a lot of money in order to preserve market share. Now, since the ban on tobacco advertising within most developed economies, the tobacco firms have been able to save a substantial amount of money by cutting their advertising budgets - so even if sales have dipped, the reduction in costs has more then offset the marginal gains in market share they could have achieved were they free to advertise. As a result, the ban on advertising has lead to an increase in profits within the tobacco industry, contrary to what you would expect.
As a result, given how expensive advertising in F1 is, I doubt that a tobacco firm would want to invest in sponsoring a team, even if it did have the opportunity.