sport

Liberty Media made Formula 1 sustainable

Investors part of Liberty Media’s plan to restart sports

financial times, Page 2, by Samuel Ageni.

Not long ago, Liberty Media – The company controlled by the American billionaire John Malone – Patience asked to try to activate them Formula OneGlobal Auto Series. Now, however, the F1 Witnessing a moment of great success, after last year’s exciting championship duel between Lewis Hamilton from mercedes And Max Verstappen from Red BullAnd after the grand prix opening in Miami this month. It has also attracted millions of new fans thanks to campaign to surviveDocumentary Netflix.

Liberty Media He took a risk when he acquired Formula 1 for $8 billion, including debt, in 2017. The sport has been driven for decades. Bernie Ecclestonethe former car dealer who made a change in F1 in a global phenomenon. “There were a lot of things we didn’t understand,” he says. Greg Maffey Financial TimesDirector general Liberty Media. “But we were right about the things that mattered to us.” The sport was in danger of becoming obsolete when Liberty Media Intervened. On the road, Hamilton And his team was probably too controlling, while Eccleston Neglect social media and younger fans in favor of an older, wealthier male audience. there F1 It needed to be more competitive and digitally advanced, while increasing its appeal in the United States.

Covid-19 survivor

“There was an opportunity to create a better product on track and experience online, to make it more attractive to both fans, because it was more competitive, and to the investors in the teams,” he says. there is no. “All of this will create momentum that will be in our interest as well.” But negotiations to change the sports economy stumbled at first due to disagreements with it FerrariAnd mercedes And Red Bullthe most dominant teams, and plans to expand into the United States have been drawn out.

See also  Treviso-based Jacopo Bonato team wins gold at the FIFA U-20 World Championships in Dubai

Then, in March 2020, . was released pandemic From the plan to re-launch sports Liberty Media. The opening race in Australia was canceled and the teams feared for their financial lives. yields F1 It fell 43% to $1.1 billion. there is no Develop a recovery plan. Liberty Media Activities shifted to strengthen the budget F1 With $1.4 billion in cash, he offered a guarantee to special revenue teams and reworked the schedule to stage 17 races despite travel restrictions. campaign to surviveMeanwhile, it has attracted more female viewers and young fans.

Reboot

Revenue jumped to $2.1 billion last year. The response to the pandemic has helped underscore the urgent need for change. The teams above the grid agreed to the proposal Liberty Media To divide revenue evenly. Although opposed to FerrariAnd mercedes And Red BullAll teams agreed to limit individual expenses to $145 million, excluding marketing costs and pilot salaries. The aim is to ensure that bids are won with the judicious use of funds rather than unlimited outlays.

The new cars introduced this season make overtaking easier and should make racing more exciting. Criticism was drawn to the fact that previous cars had caused “air pollution”: turbulence that made it difficult for drivers to get close to their opponents. Investors accept the view there is no. The new sports economy allows teams to generate profits rather than losses. In the past twenty months, Dorelton Capital Paid 152 million euros for Williams; IneosPetrochemical Company acquired a third of the team mercedes F1; investment companies MSP sports capital And Ares Management they bought McLaren. Even big tech companies like The Google And inspiration They sponsored the teams.

See also  Tom Herman will remain as the Texas coach

new teams

In 2026, Porsche And Audibrands owned by the German car manufacturer VolkswagenYou intend to participate in the competition. “Now, the core team is probably worth at least $500 million,” he says. there is no. “Maybe more than that, they’re probably rejecting higher numbers.” expansion in F1 In the United States with the Miami Grand Prix, it was added to a program that already included the United States Grand Prix in Texas. Additionally, the sport has reached an agreement to operate in Las Vegas starting in November of next year. With events in Brazil, Canada and Mexico already on the calendar, Liberty Media The number of races increased in an important time period.

“Never say never,” he says, “but we don’t have any other events planned in the United States other than the three already in place,” there is no. “Our main audience is in Europe… We recognize our heritage.” The benchmark for the sport’s success in America will be the new broadcast contract. current contract with ESPNthe American channel owned by Disney, has a single digit value and will expire soon. The value of the next deal with the United States could be between $50 million and $100 million, according to a person familiar with the broadcasting contracts. F1.

TV rights

“I think the next deal will be much higher,” he says. there is no. “Our growth in the United States is not over yet.” there F1However, it has drawn criticism for its expansion into jurisdictions that, according to activists, do not have a good human rights reputation. The pilots discussed whether they should go ahead with the Grand Prix in Saudi Arabia following the missile attack on an oil depot near the track in March.
(complete in financial times)

See also  Draghi: "The Campania issue? For the government, open education is a priority. My father increases the inequality between the North and the South"

(Pictured, the grand prize of Formula 1)



Queenie Bell

"Introvert. Avid gamer. Wannabe beer advocate. Subtly charming zombie junkie. Social media trailblazer. Web scholar."

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
Close
Close