Why did Dutch supermarket chain Jumbo terminate $1.5 million sponsorship agreements with F1 Champion Max Verstappen?

Numerous sponsors have been associated with the motorsports industry, particularly with the global popularity of Formula 1. Red Bull, as a leading force in the industry, has established numerous sponsorship deals with various companies, contributing significantly to their financial standing.

However, it has come to light that their sponsorship arrangement with the Jumbo supermarket chain has been terminated. The chief executive recently made public the details behind this decision.

Why did Jumbo terminate his sponsorship deal with Max Verstappen?

Jumbo, the Dutch supermarket chain, has decided that it will no longer sponsor Max Verstappen once its current contract expires by withdrawing more than €20 million (US $21.3 million) in annual funding.

Ton van Veen, the new chief executive of Jumbo, has spoken to the media publicly, claiming that they will not engage in any new contracts with the industry anytime soon and promising that the current ongoing contract will not be affected in any way.

Van Veen stated, “We annually invest more than €20 million in sports sponsorship, but I can only spend every euro once. We cannot return that money to the customer or invest it in sustainability or health.”

This decision was mainly taken due to the previous chief executive, Frits van Eerd, who was suspected of illegal transactions. In September 2022, Van Eerd was arraigned by the police, who inquired about his real estate transactions, automotive trades, and some motocross sponsorship deals associated with Jumbo.

Upon investigation, Jumbo was found innocent. However, the supermarket chain decided to review its sponsorship deal, renewing their contracts for the next season. As a result, they decided to end the partnership with Max Verstappen for the betterment of their chain.

Max Verstappen and Jumbo Supermarket’s history

Jumbo has been a long-term supporter of Max Verstappen, backing the Dutch sensation even before he arrived in the Formula One industry. Their history started back in 2015, when the supermarket chain initially sponsored the World Champion when he was on the Red Bull junior team in Toro Rosso.

The chain has been loyal to Verstappen even after the horrible case associated with their previous chief executive’s money laundering investigation. Ton van Veen told the media, “That also affects our sponsorship in motorsport. We will not continue with that for long.”

“We will look critically at our activities in motorsport in the same way. An exception is the contract with Max Verstappen.”

Unfortunately, they have decided to permanently end their partnership with Verstappen and start fresh, reviewing their sponsorship deals for a while.

Would the end of their partnership profusely affect Verstappen’s financial condition? Let us know in the comment section below.