After investing in a cycling team, the America's cup, the marathon and the OGC Nice, the British company Ineos took a step further in sport, Monday, February 10, by becoming a sponsor of the Mercedes team of Formula 1.
In the 2020 season, for five years, the world champion team will display the petrochemical company logo at three locations on their car. The amount of the agreement has not been officially announced, but it hovers around 20 million euros per year, according to sources close to the company.
"We are becoming an important brand in sport"says Jim Ratcliffe, the boss and founder of Ineos, in an interview with World. To listen to the third richest man in the United Kingdom (fortune estimated at 21.5 billion euros, according to Sunday Times), this marketing offensive is almost an accident. "It was not planned. "
De 120 to 180 million euros per year in sport
The man is a sports enthusiast, football fanatic since his childhood in Manchester. He has run marathons, car rallies, loves cycling and has only slowed down in recent years due to a bad fall, which still makes him limp.
"There is not a meeting with Andy (Currie) and John (Reece) (the two co-founders of Ineos) which doesn't start with some jokes about the sport. I don't want to be sexist, but we are a group of guys, fairly simple creatures, school children from the north of England who grew up playing sports … "
It turns out that these "Simple creatures" are sitting on one of the most profitable companies in the world. Ineos, created from factories bought at a good price in the 1990s from the major oil companies, manufactures plastics, solvents, fuels, etc. In total, 171 factories in 34 countries that produce components that are found in textiles, electronics, pharmacy or packaging…
"We release 5 to 6 billion pounds (6 to 7 billion euros) per year of operational profits, or something like that. It's a lot. " Of this money, you have to invest in factories or even pay off the interest on the debt, but there is a pretty good deal. Much to justify spending in sport "From 100 to 150 million pounds (120 to 180 million euros) " per year. "In total, it is not much. "
"We need our brand to be known"
Long unknown to the general public, Mr. Ratcliffe is now attracting controversy, especially since he is a tax resident in Monaco. Protests against the pollution of the factories of Ineos took place on the sidelines of the Tour de France 2019. Is this sponsorship work just a way of washing its image? " No. It’s just wrong. " He could have stayed in the shadows and made no waves, he said.
However, these investments are not purely free. Ineos is currently investing £ 1 billion in the construction of a new 4×4, which claims to be the heir to the legendary Defender, a car which Land Rover stopped producing a few years ago.
"In petrochemicals, we do not have direct relationships with consumers, but on this project, we need to make our brand known. " Ineos must be synonymous with adventure, achievement, speed … Formula 1, with its half a billion viewers per year, fits in this box.
Armed with this sporting passion and this liquidity machine, the founders of Ineos embarked on a marketing offensive two years ago. In April 2018, they invested in the British boat that will compete in the America’s Cup next year. In March 2019, a change of dimension: they bought the best cycling team in the world, formerly called Sky, which won in the summer of 2019 its seventh tour of France.
Mr. Ratcliffe also sponsored the marathon runner Eliod Kipchoge for the first marathon in less than two hours. The Kenyan athlete passed the bet – unauthorized – on October 12. In August 2019, Ineos, who already owned the Swiss club Lausanne, finally stepped into football, buying the OGC Nice.
But let the fans who dream of huge spending and buying expensive players think again. "What do you want me to do? That I buy Messi? (…) The worst thing would be to buy a football club and start writing checks. It would be ruined money. "
Ratcliffe does not reveal his plans for the next transfer season. "We haven't had this discussion yet. " The man may be very wealthy, but he made a fortune by cutting costs. It is not forgotten.
