At the Canadian Grand Prix‘s well-known Turn 10, Formula One racer Alex Albon was making his way around earlier this month. Suddenly, due to an engine problem, he veered off course and found himself in a secluded area away from the track, necessitating his retirement.
As Albon reluctantly emerged from his vehicle and left the race track, he stumbled into the grandstands, where spectators enthusiastically waved their phones and cheered as he responded with a theatrical wave. This sudden event was quite unexpected: just seconds before, the Thai-British driver was whizzing past at an astonishing 220 MPH in Williams’ blue FW47. Now, he was being warmly acknowledged by fans who had flocked to Montreal under the scorching June sun for such an up-close experience. A young man with a beard and a cowboy hat exclaimed, “That was awesome,” as his companions, phones in hand, enthusiastically high-fived each other.
Formula One is at a critical juncture. It offers fast cars, handsome drivers, plenty of excitement, and an intimacy that other sports long for. However, it lacks one key component: the United States. After years of failed attempts to establish tracks here, the predominantly European sport may have finally found its solution with a new Brad Pitt movie, “F1,” which premieres this weekend.
Can the athlete navigate through a multitude of U.S. traffic – including no leading American drivers, heavy NASCAR competition, and a European racing TV schedule that’s predominantly morning rather than evening – in order to eventually break free from the group?
According to Patrick Rishe, who heads the Sports Business Program at Washington University’s Olin Business School, it will be quite intriguing. He is referring to an attempt to expand a product or service that currently caters to a small, specific audience and see if it can gain wider acceptance.
A day following the Canadian Grand Prix, F1 CEO Stefano Domenicali swapped the scorching Quebec sunlight for the overcast skyline of New York’s Central Park to make his case as to why [he believes] it could be feasible.
Domenicali stated that Formula 1 has had periods of presence and absence in the U.S. for many years, referring to past races in cities like Dallas and Detroit. In an interview with The Hollywood Reporter, he explained that we failed to connect with the American market because we were overconfident, assuming they would naturally understand us without regularly engaging with American fans and audiences. We were only here for a few days at a time, then returning home. Instead, we should have been more consistent in our communication and interaction.
“The strategy,” he added, “has completely changed.”
Liberty Media, led by John Malone, desires a larger presence in the U.S. for Formula One (F1) since they acquired the circuit for $4.6 billion in 2017. Despite a 6% increase in revenue and a 9% rise in operating income last year, reaching $790 million, the company seeks a broader impact in the United States. This week, Liberty also finalized the acquisition of MotoGP, which could help them expand their influence in motorsports. With seven seasons of Netflix’s Drive to Survive boosting F1’s American fan base and an upcoming Apple/Warner Bros. film projected to earn up to $50 million domestically, F1, according to Domenicali, is now poised for a successful expansion in the U.S.
As I shared about my creations, I couldn’t help but feel a sense of fatherly pride, much like a gamer talking about their favorite characters interacting with their online community.
He notes that our sport stands out by offering exceptional access to meet with the drivers, who serve as our amplifiers, our voices. The Albon incident underscores this, demonstrating that fans are willing to spend significant amounts (with resale tickets for the Canadian Grand Prix starting at $300) and endure lengthy journeys (seats were 30-45 minutes away from the nearest metro stop) to catch a glimpse of their idols.
However, Domenicali admits that a certain level of guidance might be necessary to engage more Americans with the sport. “It’s crucial,” he said, “to teach American enthusiasts effectively about this sport and its nuances.
A few blocks distant, establishments such as F1, Apple, and Warner Bros., aimed to achieve this, transforming Times Square into a racetrack for the film’s debut. Vehicles from each of the ten teams were arranged on a grey carpet beneath LED screens, attracting spectators who swarmed onto stands to catch glimpses of the celebrities. The temporary takeover of an emblematic American location (though frequented by European tourists) symbolized the sport’s aspirations. Pitt and fellow producer (and F1 champion) Lewis Hamilton graced the carpet, accompanied by Tim Cook and Domenicali.
Domenicali emphasized that we should communicate in a different manner. This change is crucial to make our product more accessible to novice enthusiasts, helping them grasp who we are and what’s happening in the market. Essentially, we want to convey the unique atmosphere surrounding our product,” he explained.
As a sports enthusiast, I find the format of Formula One (F1) rather intuitive, reminding me of familiar dynamics in sports like golf and tennis that I’m accustomed to as an American. It’s much like following international tournaments every few weekends, where points accumulated throughout the year determine the ultimate No. 1 at the end.
However, certain aspects are distinctively different. Teams consist of drivers and a substantial team of support personnel, overseen by a “principal,” who functions much like a coach. Each of the ten teams, branded after their corporate backers such as Red Bull or Mercedes, who fund the construction of their custom-made vehicles, can field two cars, or seats, resulting in 20 competitors per race. This competition structure exhibits some resemblance to NASCAR, but it’s not an exact match.
In the world of Formula One racing, which might confuse an American sports fan accustomed to simple winner-versus-loser dynamics, there exist multiple tiers of champions. For instance, each race concludes with three individual drivers on the podium, similar to how Olympic medals are awarded in gold, silver, and bronze.
Points are accumulated for an individual driver throughout the year to determine the drivers’ championship, while they are separately tallied for a team to decide the “constructors” championship. Last season, Max Verstappen from Red Bull claimed the drivers’ title, but Mercedes managed to secure the constructors’ championship as their rival.
For beginners, it’s a complex setup that the film tends to overlook, instead focusing on personal narratives over technical details.
Moreover, it’s important to note that this proposal wasn’t set in stone. In February of 2022, Jerry Bruckheimer, Joe Kosinski, and Eddie Cue from Apple services visited Domenicali in his London office with an unusual suggestion. As Domenicali remembers, at the time, it was nothing less than a wild idea.
The filmmakers aimed for authenticity in the project, so they sought access; after the meeting, Domenicali was struck by their dedication and persuasive presentation.
He remembers thinking that the film, starring Brad Pitt as an experienced racer returning to coach a newcomer, presented a significant chance for us. However, for it to truly be an opportunity, it needed to align with our brand identity. He felt that the completed movie carried a strong, infectious energy that would resonate even with those not familiar with us.
The movie isn’t the sole symbol of Formula 1 (F1) expansion; instead, over the past three years, F1 has introduced Grand Prix races in Miami and Las Vegas. This is part of a broader trend of global sports expansion, with examples like the Chicago Blackhawks playing in Prague and the Los Angeles Dodgers in Seoul. As Professor Rishe from Washington University points out, the attraction for F1 lies in tapping into a high-income segment of the U.S. market, catering primarily to its mostly European sponsors.
The movie isn’t just a sign that Formula 1 (F1) is expanding; over the last three years, F1 has introduced races in Miami and Las Vegas as part of a global trend in sports expansion. For instance, teams like the Chicago Blackhawks have played in Prague, and the Los Angeles Dodgers have been to Seoul. According to Professor Rishe from Washington University, this is because F1 is trying to tap into a wealthy segment of the U.S. market, which aligns with its sponsors who are mostly based in Europe.
However, incorporating new events carries risk because every race held here, unlike those in Europe, is one that can’t be replicated with the same reliability; for instance, the Miami Grand Prix in 2022 was established following the cancellation of the French Grand Prix, and the U.S. Grand Prix in Austin joined the schedule after the European Grand Prix hosted in Spain ended in 2012. Both European races were problematic, and Formula One takes a gamble each time it transports its cars onto jumbo jets to locations outside of its traditional testing grounds on the continent.
I’m thrilled about the new addition of a race in Las Vegas to the F1 calendar for 2023! It seems to have had some positive impacts, such as revitalizing the city’s tourism during its usually quiet November months. However, it hasn’t been without its issues. Locals are grappling with increased traffic and business disruptions, while drivers face unique challenges like dealing with colder track conditions since the race takes place at night, which affects tire and braking performance.
Unfortunately, the 2024 Vegas race didn’t bring in as much revenue as anticipated, according to Liberty executives. This shortfall contributed to a 5 percent decrease in F1 earnings during the fourth quarter. Despite these hiccups, I’m excited to see how things unfold and hope for continued growth and improvement!
The cost of organizing a race is quite substantial, mainly due to construction and safety expenses. These costs are typically borne by local event organizers, who can sometimes be difficult to find. (Regarding the balance between modern and traditional venues, Domenicali admitted that “there’s no perfect solution.”)
The lack of American drivers persisting is still posing challenges towards F1’s objective of gaining domestic recognition. The latest American racer in an F1 car, Logan Sargeant, experienced a setback following a string of high-profile collisions with Williams last season, leading to him losing his position. Prior to this, the last consistent American F1 driver was in 2007.
F1 features a diverse cast of characters, including the charming 18-year-old Italian Kimi Antonelli, who placed third in Montreal, as well as two bright young British racers, George Russell and Lando Norris. The seasoned Briton Lewis Hamilton and the formidable Dutch driver Max Verstappen, often portrayed as the antagonist by F1 fans along with his Red Bull team head Christian Horner, are also part of this lineup. Furthermore, many fans have a soft spot for Esteban Ocon, the hardworking Frenchman who’s been overlooked in the past due to larger personalities and now races for the American-owned Haas team.
However, European athletes in lesser-known sports among Americans might struggle to gain recognition from a broader audience. As Neal Pilson, a seasoned CBS Sports executive turned consultant, points out, “Is it possible to create stars when all we see are athletes on the podium and not during the actual competition?”
This version maintains the original’s meaning while making it easier for readers to understand and follow.
In this aspect, Pitt might stand out as the most prominent figure, and although it’s unusual for movie celebrities to boost athlete recognition, the film could still spark broader curiosity about the sport, much like how Rocky increased interest in the boxing era of Larry Holmes and Sugar Ray Leonard or, in a similar fashion, Bull Durham did for minor league baseball.
A potential television agreement may aid F1’s cause. At present, Formula One is engaged in discussions over broadcasting rights, aiming to find a new platform – either traditional TV or streaming service – for the broadcast of its 24 annual races each year.
Domenicali reports that the negotiations are going smoothly with multiple potential partners engaged in the talks. When queried about whether a movie’s box office success could aid F1 in sealing a fresh agreement, he confidently replies, “Absolutely.
Over the last seven thrilling years, I’ve been privileged to team up with ESPN in the U.S., a partnership that reached new heights with our latest agreement sealed in 2022, valued at an impressive $90 million annually. This recent partnership has significantly broadened my reach, with more races now gracing the ABC broadcast network, and streaming seamlessly on ESPN+, making every race moment more accessible than ever before!
As a gamer, I’ve noticed ESPN changing its strategy when it comes to sports rights, particularly as they gear up for their new streaming service. Instead of grabbing every sport under the sun, they’re focusing on what they refer to as “must-have” sports, such as the NFL, college football, and NBA at the premium level. On the other hand, they’re also open to bargain deals like last minute ones, or even exploring new emerging sports that are willing to strike a deal with them.
ESPN has contributed to the growth of Formula 1’s popularity, and reports indicate there’s a possibility they might secure a fresh agreement. From Formula 1’s perspective, the ideal outcome is that this new deal, whether with ESPN or a different partner, will take things to an even higher level.
Domenicali stated that they were the ones who backed us at a time when there wasn’t much assurance that we could flourish in the sporting realm. He pointed out that Formula 1 (F1) recently entered into an agreement with Disney, ESPN’s parent company, encompassing global experiences, content, and merchandise, blending F1 with the iconic Mickey Mouse characters. Despite our current small stature compared to leagues like the NFL and NBA, he remains optimistic about future expansion: ‘We understand that we are starting small, but growth is key,’ Domenicali said.
As a dedicated fan, I can’t help but speculate about potential suitors for the upcoming media rights auction. Giants like NBCUniversal and Paramount certainly have the reach and streaming capabilities to make this an exciting partnership. However, with NBCU recently securing the NBA deal and Paramount focusing on finalizing its Skydance sale, it’s not immediately clear if they’ll be throwing their hats in the ring. But hey, stranger things have happened in the world of sports media!
Partnering with F1 in the movie ‘Apple’ is a logical pick, as it recently struck a contract for Friday night games with MLB (Apple is also a contender for ESPN’s old MLB package), and has made an exclusive worldwide agreement with a smaller but expanding league, Major League Soccer.
However, several MLS executives are expressing dissatisfaction with the Apple partnership, mainly due to Apple TV+’s limited user base compared to other streaming services like ESPN (in approximately 70 million American homes) and Netflix (with over 81 million U.S. subscribers). Despite Apple not disclosing exact numbers, it is estimated that their user count ranges from 25-50 million.
Netflix is an excellent choice for partnership due to its extensive reach in streaming services and increasing interest in live sports events. The streaming platform and Formula One (F1) are already familiar with each other, thanks to the popular series “Drive to Survive,” which has reportedly increased female viewership to approximately 40% of their total audience. The on-demand nature of streaming services aligns better than traditional cable for European races since many American viewers would need to adjust their viewing schedules. However, live sports remain popular in today’s era because they are typically watched as they happen.
Netflix is prioritizing its sports approach around “special occasions,” yet it’s flexible about what constitutes these events, encompassing one-time occurrences and annual matches (like the NFL on Christmas Day), all the way to securing rights for the Women’s World Cup in 2027. Moreover, Netflix airs WWE Raw every Monday evening, hinting at an openness towards broadcasting recurring live events.
A seasoned sports media professional pointed out that when there are more potential buyers than available packages, the market is strong. (Domenicali mentions he won’t divide the F1 rights into several portions.) However, Formula One is trying to double its existing U.S. deal price, a bold move that could face tougher economic circumstances.
In essence, Domenicali is pondering about finding a fair equilibrium between expanding the audience (reach) and earning profits (monetization). This dilemma, he notes, is crucial in their negotiations with an influential American partner, and the choice they make could significantly impact the future of Formula 1 in the United States.
It’s crucial for rights-holders to acknowledge that a majority (19 out of 24) of Formula 1 Grand Prix races occur at least five time zones away from the continental United States, which can pose a significant challenge to growth. Some seasoned sports television professionals who have previously purchased these rights express this as a major hurdle. As stated by Pilson, who has experience in acquiring TV rights for races like Detroit and Watkins Glenn, NY, “Formula 1 has a dedicated fanbase, but there’s no proof it can progress to higher levels.” He further noted, “Just because the Miami race attracts an audience doesn’t mean it’s on the brink of rapid expansion.
For an aspiring broadcaster, golf could serve as a relatable analogy, much like a globally competitive sport that has gained massive popularity over time. Unlike Formula 1 racing, which requires a specific skillset many of us don’t possess, golf is more accessible due to its familiarity among people and the higher number of individuals who play it compared to driving an F1 car.
Similarly, soccer offers a comparable scenario, as in recent times, European soccer stars and events have made their mark on TV and streaming platforms, following years of attempts to do so. The advantage of soccer is further enhanced by the success of the U.S. team in international competitions and its widespread popularity among children worldwide.
Interestingly enough, no sports feature team leaders engaging in such intense verbal sparring as Toto Wolff of Mercedes and Red Bull’s Christian Horner have recently exhibited. This heated exchange is reminiscent of Sean McVay and Kyle Shanahan publicly discussing their disagreements immediately following a significant game between the Rams and Niners.
Or, more concisely:
Unlike other sports, team leaders like Toto Wolff (Mercedes) and Christian Horner (Red Bull) have been seen recently engaging in heated exchanges similar to post-game debates between Sean McVay (Rams) and Kyle Shanahan (Niners).
Maintaining continuous fan engagement strategies helps sustain interest beyond just TV broadcasts. The F1 has created a full-year experience at the Las Vegas paddock, offering go-kart tracks, racing simulators, as well as official vehicles and gear, to spark curiosity among potential F1 fans.
According to Ian Moore, an analyst from Bernstein, such initiatives, coupled with the release of the film, could significantly contribute to the sports’ efforts to fulfill its aspirations in America.
Moore expresses that while it’s appealing to consider success for both the Vegas push and Pitt film, they are somewhat apprehensive about both situations. He points out that Drive to Survive had an advantage due to favorable timing in sports content during the pandemic, a growing trend of on-demand streaming, and the thrilling real-life competition between Hamilton and Verstappen which added dramatic tension.
During the Montreal Grand Prix, things didn’t just involve Albon’s departure as excitement escalated towards the end. Norris and his McLaren teammate, Piastri, collided on one of the last laps; Russell emerged victorious for Mercedes due to some strategic moves at the last moment against Verstappen from Red Bull; and Horner from Red Bull lodged a protest, which Wolff from Mercedes described as “unimportant” or “insignificant”.
Initially on the racetrack and later online, the spectators enthusiastically engaged in heated debates about who was correct. Domenicali emphasizes that such out-of-track controversies are what will captivate a fresh group of American sports enthusiasts.
He compared it to attending a playhouse. The drivers are like the main characters, joined by their teams.
He noted, “It’s crucial to realize that in sports and businesses like this, it’s not just about driving. If your goal is to drive, services like Uber could provide you with numerous opportunities for covering significant distances.
Read More
- Gold Rate Forecast
- Pi Network (PI) Price Prediction for 2025
- Silver Rate Forecast
- USD CNY PREDICTION
- USD MXN PREDICTION
- EUR CNY PREDICTION
- 10 Most Anticipated Anime of 2025
- Brent Oil Forecast
- Capcom has revealed the full Monster Hunter Wilds version 1.011 update patch notes
- Hero Tale best builds – One for melee, one for ranged characters
2025-06-26 19:55