Formula One champions Ferrari have extended their sponsorship deal with Philip Morris to 2011 despite European Union legislation against tobacco advertising.

The agreement means the Marlboro cigarette brand will remain the Italian team's title sponsor and will anger those campaigners who had hoped the sport would kick the tobacco habit. Ferrari chairman Luca di Montezemolo announced the five-year extension at an Italian Grand Prix dinner at the Monza circuit on Saturday night. No financial details were given. The existing deal, which provides a significant chunk of the Fiat-owned team's budget, had been due to expire at the end of the year.
Ferrari, struggling on the track this season, already have oil company Shell signed up as a partner to 2010 and have agreed a commercial deal with Formula One supremo Bernie Ecclestone and the governing FIA to 2012. Mr Montezemolo said Ferrari's grand prix activities were funded by such deals, as well as the sale of road cars and merchandising and the team did not get a single euro from Fiat.
The sport's existing commercial agreement, binding all teams together, runs out at the end of 2007.
Despite the Marlboro sponsorship, Ferrari's red and white cars were running unbranded at Monza this weekend due to a local court judgement and lingering uncertainty about the EU legislation.
The directive banned all print and broadcast advertising and event sponsorship within the EU by tobacco companies from the end of July.
Four of the ten teams in Formula One have tobacco sponsorship, with Ferrari joined by Renault, BAR and Jordan. Philip Morris International spokesman Tommaso di Giovanni said the Marlboro brand would stay on the car in those countries, such as Malaysia and Bahrain, that still permitted tobacco advertising.
"It (the sponsorship) is going to comply with the rules and regulations wherever we do business," he said. "There are countries where tobacco sponsorship is obviously not allowed. In those countries we will continue to support Ferrari without branding." Mr di Giovanni would not comment on future commercial activities with the team, such as speculation that Marlboro could put Ferrari branding on cigarette packets as a way around the legislation. (pi)