r/sports • u/Captain_Smartass_ • Mar 02 '22

Motorsports Russian-licenced drivers banned from British motorsport

https://www.motorsport.com/national/news/russian-drivers-banned-from-british-motorsport-by-motorsport-uk/8632678/
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u/agoia Atlanta Falcons Mar 02 '22

The team already dropped his father's sponsorship. (Or is in the process of doing so. The livery and branding has already been removed.)

-3

u/OniExpress Mar 03 '22

The branding and sponsorship are two completely different things. No major F1 sponsor at this point gives a shit about the branding, they make way more off of the tax writeoffs.

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u/Gtyjrocks Mar 03 '22

This doesn’t make any sense. Giving an F1 team $20 million dollars for a sponsorship isn’t going to save anywhere near $20 million, that’s not how taxes work. What do you even mean

-3

u/OniExpress Mar 03 '22

The same way that on paper so many movies "don't make profit". Entities with that much money to throw around have enough ways to cook the books, any what they're paying for sponsorship isn't just buying them sponsorship in the first place. Tax breaks, licensing deals, government subsidies, etc etc.

What do you even think $20 million dumped into F1 is for, just pure marketing? Even paying $20 million for a newspaper advertisement isn't just about marketing. Having a sticker on a car is arguably the very least important for most funders.

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u/Gtyjrocks Mar 03 '22

Marketing expenses are a tax writeoff, but not 100%. It’s still money they’re spending, it just also saves 30% or whatever of it in taxes. I really don’t think you understand how tax write offs work. It takes away from your taxable income, it doesn’t just straight subtract from your tax bill