Team Lotus' driver Jarno Trulli drives at the Yas Marina circuit. Team Lotus, which started competing in the sport last year, landed a sponsorship deal this season with GE. Marwan Naamani / AFP
Team Lotus' driver Jarno Trulli drives at the Yas Marina circuit. Team Lotus, which started competing in the sport last year, landed a sponsorship deal this season with GE. Marwan Naamani / AFP

As cars zoom, business hums



As Formula One cars screech around the Yas Marina Circuit today, big business deals will be quietly struck behind the scenes by captains of industry entertaining valuable clients.

Closer to the action of the race, carefully placed adverts pepper the track; encircling stands sell team merchandising and drivers' cars, caps and overalls are emblazoned in sponsors' logos.

Welcome to one of the most expensive sports in the world, where business meets pleasure and sponsorship is every bit as important as the race result.

"It's a big budget sport. Formula One is littered with rich people who come in and then have to leave it because they can't afford it," says Mike Gascoyne, the chief technical officer of Team Lotus.

"There is a great saying: if you want to become a millionaire in Formula One start as a multimillionaire."

Team Lotus, which returned to competing in the sport last year, landed a sponsorship deal this season with one of the world's biggest companies.

"The great thing for us is not just that we have got GE as a sponsor, but that sponsorship is going from strength to strength," says Mr Gascoyne.

"It's expanding because they are feeling value. They also love the competitive edge and that we are the team who are going to come from the back and move up with them is a great story. That's where the pressure is because I've got to deliver it."

The partnership is valuable to Team Lotus, which has several sponsors including Dell, because of the financial security it offers and the technical collaboration it can bring. And having such a big and well-respected company on board lends the team extra credibility.

"It was a little bit of a signal to the other teams that we have got one of the biggest companies in the world with us," says Team Lotus driver Heikki Kovalainen.

"People respect us in the paddock and they think that we are going to move up the grid. And I think some of the teams ahead of us are probably worried about that. It's just a matter of time."

Mr Gascoyne admits that team principal Tony Fernandes' aviation industry connections came in handy in securing the deal, because it is "tremendously difficult" to get good sponsorship on board in the current economic climate.

It costs about £40 million (Dh236m) for each team to be in F1, which covers only the building of the cars and parts for the season, plus travelling and turning up at the race. Anything above that is spent on going faster, which is why teams need sponsors.

But the benefits companies receive are big.

"Each grand prix is still, I think, the third-biggest televised sporting event in the world. The other two are the World Cup final and the Olympics. They are once every four years. We do it 20 times a year … In terms of the global hit, it's massive. Each race is watched live by something like 340 million people," says Mr Gascoyne.

But some companies choose to sponsor races or venues instead of teams.

"The event brings a great value to Abu Dhabi … We are part of the fabric. We are one of the important players in the development of Abu Dhabi," says Salah Al Tamimi, the head of the corporate communication department of National Bank of Abu Dhabi, which has been the event's official bank for the third year running.

Mr Al Tamimi refuses to reveal how many guests the bank will entertain at the event over the weekend. But he stresses that the value of corporate hospitality cannot be disputed.

"Our customers really enjoy it and appreciate it … It's a win-win situation," he says. About 15,000 people will be entertained throughout the weekend at the Paddock Club, which is the biggest in the calendar.

"There are a lot of hospitality opportunities at the circuit. That 15,000 is just one section," says Steven Umfreville, the commercial director of the Yas Marina Circuit.

"If you look at the way the Yas Marina was built … it is very much of a place to do business and network," he adds.

Few individuals buy paddock tickets. The main buyers are either organisations, multinationals or local companies.

The Paddock is a place where companies entertain important clients, and teams host sponsors. And some, including the host, will use the opportunity to try to pick up some more.

"This is a great opportunity to introduce and re-sign sponsors that you have been involved in or are looking to get involved in Yas Marina Circuit or Formula One or any part of our business," says Mr Umfreville.

"This is our jewel … it highlights the capabilities of Yas Marina Circuit and obviously what we can do all year round. There will hopefully be a few more deals done over the weekend for Yas Marina Circuit."

Is it worth it? We put cheesecake frap to the test.

The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?

My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.

The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.

So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.

 

 

SPECS

Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now

START-UPS IN BATCH 4 OF SANABIL 500'S ACCELERATOR PROGRAMME

Saudi Arabia

Joy: Delivers car services with affordable prices

Karaz: Helps diabetics with gamification, IoT and real-time data

Medicarri: Medical marketplace that connects clinics with suppliers

Mod5r: Makes automated and recurring investments to grow wealth

Stuck: Live, on-demand language support to boost writing

Walzay: Helps in recruitment while reducing hiring time

UAE

Eighty6: Marketplace for restaurant and supplier procurements

FarmUnboxed: Helps digitise international food supply chain

NutriCal: Helps F&B businesses and governments with nutritional analysis

Wellxai: Provides insurance that enables and rewards user habits

Egypt

Amwal: A Shariah-compliant crowd-lending platform

Deben: Helps CFOs manage cash efficiently

Egab: Connects media outlets to journalists in hard-to-reach areas for exclusives

Neqabty: Digitises financial and medical services of labour unions

Oman

Monak: Provides financial inclusion and life services to migrants

The specs

Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 7-speed dual-clutch auto
Fuel consumption: 10.5L/100km
On sale: Now
Price: From Dh129,999 (VX Luxury); from Dh149,999 (VX Black Gold)

The five stages of early child’s play

From Dubai-based clinical psychologist Daniella Salazar:

1. Solitary Play: This is where Infants and toddlers start to play on their own without seeming to notice the people around them. This is the beginning of play.

2. Onlooker play: This occurs where the toddler enjoys watching other people play. There doesn’t necessarily need to be any effort to begin play. They are learning how to imitate behaviours from others. This type of play may also appear in children who are more shy and introverted.

3. Parallel Play: This generally starts when children begin playing side-by-side without any interaction. Even though they aren’t physically interacting they are paying attention to each other. This is the beginning of the desire to be with other children.

4. Associative Play: At around age four or five, children become more interested in each other than in toys and begin to interact more. In this stage children start asking questions and talking about the different activities they are engaging in. They realise they have similar goals in play such as building a tower or playing with cars.

5. Social Play: In this stage children are starting to socialise more. They begin to share ideas and follow certain rules in a game. They slowly learn the definition of teamwork. They get to engage in basic social skills and interests begin to lead social interactions.

Profile Idealz

Company: Idealz

Founded: January 2018

Based: Dubai

Sector: E-commerce

Size: (employees): 22

Investors: Co-founders and Venture Partners (9 per cent)

The specs

Engine: four-litre V6 and 3.5-litre V6 twin-turbo

Transmission: six-speed and 10-speed

Power: 271 and 409 horsepower

Torque: 385 and 650Nm

Price: from Dh229,900 to Dh355,000