Verstappen might have won on the racing track, but not yet in business

Het Financieele Dagblad

Verstappen has recently won his first world championship in an exciting climax in Abu Dhabi. Even though this is a great start, Hamilton is ahead in other fields, such as business. In an article from Het Financieele Dagblad, Sports Economist Thomas Peeters at Erasmus School of Economics explains how Hamilton uses his media to capitalize on his image.

Verstappen still has a long way to go to catch up to his main competitor Lewis Hamilton in terms of market value. Sponsorship offers continue to stream in, but team Verstappen will not take anything. 'We are interested in long-term relationships. We do not engage in brief social media relationships with unusual businesses'. If you take a look at Verstappen's Instagram feed, you'll see that the great bulk of the photographs are tied to racing. Advertisements featuring Verstappen and Red Bull, the energy drink brand that sponsors his Formula One team, are intimately intertwined. Jumbo and Ziggo have also long been associated with Verstappen.

Significant contrast

While these enterprises are not insignificant, they pale in comparison to the names Hamilton has associated with him, like electronics maker Sony and fashion house Tommy Hilfiger. Verstappen's yearly earnings are estimated by Forbes to be 37.6 million euros. One million dollars of that total is generated from sponsorship revenue. Hamilton, on the other hand, earns a yearly income of 61.9 million euros, the majority of which comes from sponsorships, according to the American business magazine. Peeters also comments that Hamilton's prominence is increasing. The primary source of sponsorship revenue is brand recognition. Everything that contributes to this goal is beneficial. Hamilton's interactions with well-known women are often the subject of gossip publications.'

Verstappen, Peeters believes, must establish a worldwide brand in order to narrow the deficit. 'However, that is more challenging due to the small size of the Dutch market.' Verstappen's yearly salary with Red Bull will be in the several tens of millions. Then there is a bonus system, in which money is handed out based on his final classification position. This bonus is applicable to both the world championship and constructors' championship.

More information

You can download the full article from Het Financieele Dagblad, 13 December 2021, above.

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