Narain Karthikeyan's popularity is nowhere near that of the Indian cricket stars. But by becoming the first Indian to break into the world's most expensive sport, Formula1 racing, the 28-year-old's endorsement deals, estimated to be in excess of $1.5 million, can match the earnings of many in Team India.
"Within just a day of the formal announcement of Karthikeyan's F1 deal, I have received several endorsement enquiries, including one from a leading beverage firm," said Sanjay Sharma, the head of JK Tyre's motor sports division who doubles up as Karthikeyan's manager.
Karthikeyan is currently being supported by a consortium of companies led by the Tata group that includes JK Tyre, Bharat Petroleum and the energy-drink brand, Red Bull. According to Sharma, more brands would be signed up once the contract agreement with Karthikeyan's racing team, Jordan, is finalised on Thursday.
Till last year, when the ace Indian driver was competing in the Formula 3 series, JK Tyre alone had committed a sum of $200,000 a year in endorsements. Now at Formula 1 where the Jordan team spent close to $75 million, the sponsorships will at least have to double to keep Karthikeyan on the track.
Bigger teams like Ferrari spend in excess of $400 million. "If he finishes in the top 10 this year, he will undoubtedly be bigger than any other Indian sportsman in terms of endorsements. Although the Tata group refused to disclose the size of its endorsements, sources close to the deal said they would be close to $1 million.
"The Tata group is among the first Indian corporate houses to compete in the tough global arena, and Karthikeyan's performances at the global stage fits our corporate image," said Romit Chaterji, vice-president, corporate affairs, Tata Services Ltd.
For the brands associated with Karthikeyan, F1 will provide a great global advertising platform as it is the most-watched sporting event in the world.
All brand logos will get a prominent display on both the Team Jordan cars, the drivers' livery and crash helmets. The F1 circuit has 19 races in a season with 10 teams and 20 drivers taking part.
Meanwhile, ESPN-Star Sports, which has the exclusive rights to telecast F1 races in India, expects its viewership to get a boost with Karthikeyan's elevation. To cash in on the development, the sports channel is planning to do some programming with Karthikeyan.
"So far, viewership of F1 races is predominantly in south India and in metros like Delhi and Mumbai. We now hope to go to second rung cities also," ESPN-Star Sports Managing Director R Venkateish said.
The F1 Effect
- Prize Tag: The endorsement deals of Narain Karthikeyan, the first Indian in Formula1 racing, is estimated at $1.5 mn.
- Sponsors: Karthikeyan is currently supported by a consortium led by the Tata group, that includes JK Tyre, Bharat Petroleum and Red Bull.
- F1 Spiral: The Tata group endorsement deal is believed to be close to $1 million.
- TV Ratings: ESPN-Star Sports, which has the exclusive rights to telecast F1 races in India, expects its viewership to get a boost with Karthikeyan's elevation.
