While its race form hasn’t been able to match that due in essence to excessive tyre usage, that one-lap pace has been impressive and it has been sustained even in the context of a tight development race, with all teams regularly bringing new parts.
In the past, Haas has struggled to match its competitors throughout a season. However, the team’s ability to do so in 2023 can be attributed to its improved financial resources.
Earlier this year, there was an indication that a change was coming. Team boss Gunther Steiner acknowledged the need to operate within the cost cap, something that was previously unattainable.
Since the team has reached its limit, it must now control expenses such as freight costs. This is why, at the beginning of the season, the team’s decision to move to a smaller pitwall “prat perch” became a visible representation of their increased focus on meticulousness.
The jump from 10th in the world championship in 2021 to eighth last year and the associated prize money hike has added to the spending pot, but Haas has an increased budget this year thanks in large part to the support of title partner MoneyGram.
While Gene Haas has never shied away from spending what it takes to run the team at a competitive level, significant extra outside backing has always been welcome.
In recent seasons, he has faced difficulties in securing major sponsors. The experiences with Rich Energy and Uralkali ended on a sour note, although the circumstances were different.
However in MoneyGram Haas and Steiner have found a partner that not only provides useful extra funding but it easy to work with and brings a lot more to the table than hard cash.
“I cannot reword”
MoneyGram is a prime illustration of a US company recognizing the global advantages of participating in F1, which has been amplified by Drive to Survive. Furthermore, as its clientele consists of regular individuals, its presence is more relatable to fans compared to the prevalent B2B enterprises or financial firms featured on cars nowadays.
Haas F1 Team logo
Photo by: Erik Junius
MoneyGram is often mistaken for the numerous crypto or investment firms that have entered the F1 scene. However, it is actually an established money transfer company that is commonly utilized by individuals on the main street. Western Union, a well-known name in households, serves as one of its primary rivals. This is precisely why MoneyGram has ventured into the realm of F1.
“I cannot reword”
“We need to spread the message and change our approach in promoting our brand to consumers. Around a year ago, we started contemplating on how to achieve that. It is quite challenging to rebrand ourselves as a small American company with a global presence, despite being fairly recognized. Therefore, we were brainstorming the ideal partnership and strategy to accomplish this. We considered the possibility of launching a worldwide marketing campaign.”
“We receive numerous inquiries from various sports, including F1 which recently came to our attention. Being a devoted fan who has closely followed it for a considerable period, I initially thought, ‘This might be a challenge beyond our capabilities’.”
Holmes expressed curiosity and requested his marketing team to explore the potential benefits that the company could gain from participating in F1.
“When examining F1, a few notable aspects stand out,” expresses Greg Hall, the chief marketing officer of MoneyGram. “Firstly, when considering sponsorship, it is crucial that the brand attributes of the entity or individual align with the message we aim to promote. F1 encompasses technology, innovation, speed, excellence, and safety, which are highly significant for our worldwide digital financial service enterprise. Hence, we commenced with this foundation.”
F1 also possesses a worldwide presence. European soccer enjoys immense popularity worldwide. However, F1 has a global fan base with races held in 20 diverse countries. When we examined the geographical distribution of races within our customer base, we found that approximately 70% overlapped. Hence, we had both the brand characteristics and this commonality.
A Haas F1 team press conference is held with Alex Holmes, CEO of MoneyGram, Guenther Steiner, Team Principal, Haas F1, Greg Hall, CMO of MoneyGram
Photo by: Andy Hone / Motorsport Images
Multiple teams were considered for MoneyGram funding, but Haas quickly became the selected candidate. The announcement of the deal was made public during last year’s US GP.
“I cannot reword”
“I consistently express that the culture he established bears a striking resemblance to the culture Alex has established in MoneyGram. This results in two teams that are highly receptive to collaborating with one another. Consequently, we were able to unite swiftly.”
The successful relationship between Haas and its sponsor relies heavily on the synergy they share, as they both face significant challenges in their respective industries.
Holmes acknowledges the intense competition that exists globally in various aspects. He believes that it is crucial to stand out from the crowd in some manner. Holmes perceives a tenacity within individuals, including himself, as they strive to prove themselves and overcome challenges. Similarly, he believes that Haas shares this desire for achievement. Ultimately, everyone involved aims to emerge as winners and achieve success.
“I think what we bring to the table is that same genuineness and eagerness to kind of dig in and fuel the customer base globally.
“I find it particularly intriguing that during this process, there were other teams who expressed interest in acquiring the MoneyGram brand due to our extensive global presence. They desired to leverage our strong customer base to enhance their own growing brand. Ultimately, Haas emerged as the most logical choice for us.”
Haas had an advantage by being able to provide title sponsorship, which was not something all potential candidates for the deal could offer. MoneyGram did not want to have a lesser presence on a potentially more competitive vehicle.
Hall emphasizes the importance of their collaboration with Haas, stating that they sought more than just a superficial presence on a car. They desired a genuine partnership, which they found exclusively with Haas, leading to their swift union.
Nico Hulkenberg, Haas VF-23
Photo by: Erik Junius
“We have a strong affinity towards their brand and appreciate their worldwide presence. Similarly, they share the same admiration for our brand and values. By fostering this mutual appreciation, we can engage in collaborative meetings and expedite the development process, even for tasks as straightforward as designing livery.”
“We made the announcement in October and began designing the livery in November. The fact that we were able to bring together two well-known brands along with their creative, brand, and legal teams demonstrates our capabilities.”
Regarding performance on the racetrack, it is not solely about achieving concrete outcomes, but rather about making efforts to enhance oneself. As Holmes points out, when he expressed his passion for F1 to Gunther, he acknowledged his lack of expertise in driving and engineering, leaving those aspects to the professionals.
“We seek to collaborate with individuals who are making their utmost effort to create the most exceptional vehicle for the race. Ultimately, we have confidence in their commitment to achieving this goal.”
“We engage in discussions with them, having various conversations where their frustration becomes palpable. Gunther will provide us with valuable information about alterations in strategy and other matters. These interactions are authentic and beneficial. Our aim is to be competitive, while maintaining realistic expectations.”
MoneyGram, like other sponsors of Haas, gains advantages from Steiner’s prominent position. It is not just about having two drivers as PR representatives, but also having a team boss.
“When we initially encountered Gunther and went out for dinner, we observed the impact he had,” Holmes recounts. “During our meal, individuals approached our table, eager to take photos with him. Their excitement was palpable. Gunther’s humor and authenticity were truly remarkable. He would often express his bewilderment, saying, ‘I have no idea what’s happening’.”
“I cannot reword.”
MoneyGram primarily serves regular consumers, including individuals working overseas who frequently send money back to their home countries. This highlights the significance of the Middle Eastern races.
“I cannot reword”
Kevin Magnussen, Haas F1 Team
Photo by: Glenn Dunbar / Motorsport Images
Apart from the UK, Italy, and Spain, these countries are significant markets for us. The Middle East is experiencing rapid growth, particularly due to the influx of migrants from the Philippines, South Asia (including India, Pakistan, and Bangladesh), Bahrain, Saudi Arabia, Qatar, and the UAE. These countries play a major role in our business.
During the Jeddah F1 weekend, Haas was the sole team to have a significant presence in the expansive shopping mall situated across from the racetrack. They showcased a driving simulator and a show car. A similar arrangement was also observed in the downtown fan zone in Bahrain two weeks prior.
Engaging with the general audience through these events is an essential aspect of MoneyGram’s plan. As a part of this initiative, the company has organized a sequence of contests, granting the victorious individuals an opportunity to explore the F1 paddock.
Holmes expresses admiration for MoneyGram due to its strong presence among consumers. He believes that Formula 1 is often misunderstood as an exclusive and elitist sport, but in reality, it is much more accessible. The majority of its fan base consists of a diverse demographic that differs from the portrayal on television.
“Our customer base consists of regular individuals who are drawn to the sport. We take great pleasure in making the sport more accessible and relatable for them. It is truly a unique experience to bring the car and drivers to a shopping mall.”
“We have no intention of hosting the Paddock Club and inviting 200 corporate guests; our aim is to attract consumers from the general public.”
In Melbourne, there was a notable instance involving a student from Nepal residing in the city. This individual utilizes MoneyGram to send funds back to their home country and was fortunate enough to win a trip to the paddock. Additionally, they had the opportunity to meet and interact with Steiner.
Hall explains that Gunther discovered his Nepalese heritage and quickly proclaimed himself as an avid climber. The two engaged in a conversation about climbing as if they were old acquaintances, showcasing the strong bond that Gunther has fostered within his culture. The fan who witnessed this interaction left feeling extremely elated and surprised by the unexpected experience.
Gunther Steiner, Team Principal, Haas F1 Team
Photo by: Simon Galloway / Motorsport Images
MoneyGram is definitely positioned to remain in the F1 industry for a significant period of time, thus anticipate the name to endure for an extended duration.
“We aim to maintain our current progress and continue to build upon it,” states Holmes. “We have previously worked with ICC cricket, local soccer teams, and European football teams. However, this project presents a unique opportunity.”
“We are gaining knowledge from every event we participate in, regardless of whether it is centered around corporate or consumer interests.”
“We will discard certain things next year and acknowledge, ‘Those did not perform as expected’. Conversely, we will also be pleasantly surprised by certain things, exclaiming, ‘Wow, that exceeded our expectations’.”
“I firmly believe that the initial year serves as a valuable learning experience, and we have certainly incorporated that aspect into our strategy. Our commitment to this objective extends over multiple years.”
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