Car maker Lexus has announced that it has agreed to extend its sponsorship of the Melbourne Cup.
The brand now continues its naming rights deal after a two-year extension was agreed for it to remain as the principal partner of the Victoria Racing Club. The new deal means their sponsorship of the Cup runs to seven years.
Lexus Only Fourth Sponsor in 162 Years
The new naming rights extension comes at a time when New South Wales has announced prize money boosts. The Melbourne Cup, as things stand, has been relegated to be only the third most valuable horse race in Australia. Now however, the extension of the Lexus partnership means the future is secure.
Lexus announced their extension during the launch of the 2022 Melbourne Cup Tour. The tour celebrates its 20th year, starting in July.
Longevity in partnerships has always been the aim of the VRC, with Lexus being only the fourth sponsor of the big race in some 162 years. An initial five-year deal was signed in 2018.
The partnership agreement includes naming rights not just for the Melbourne Cup, but also the day overall. As well as this, Lexus puts its name to the Tour, the Melbourne Cup Parade and the barrier draw.
Long Term Approach to Sponsorship the Aim
For Lexus, this is a partnership made in heaven. As a luxury brand, the car firm sees partnering with one of the world’s greatest races as the ideal fit.
The new deal sees the VRC and Lexus partner up until at least the end of 2024. The big race will continue to be known as the Lexus Melbourne Cup, while the brand will also sponsor prominent lead-up races providing automatic entry to the Cup.
The Victoria Racing Club remains committed to longer-term sponsorship agreements. They are charged with looking after one of the world’s classic sporting events. That includes securing its financial future.
Taking a longer-term approach to major sponsorships allows the VRC to maximise opportunities, while Lexus clearly feel the same way about their end of the deal.
Lexus initially began its partnership back in 2003. This year marks a major anniversary for their involvement. It is also their fifth year with naming rights for the Melbourne Cup.
As the two partners continue working together, the Lexus brand will be seen by more people. Crowds are back at Flemington now which surely encourages the car maker to keep up its financial backing.
It remains to be seen whether this can positively affect prize money. The Melbourne Cup’s recent relegation to third most valuable race doesn’t quite sit right.
More announcements are expected about prize money soon. It may just be that the VRC were waiting for this latest deal to be finalised before increasing the pot.
Read more news about the Melbourne Cup.
