[DOF_power]

FEBRUARY 14, 2008

Where should F1 races be held ?


Formula 1 is a very profitable business with TV companies, in particular, pouring money into the coffers of the Formula One group of companies, which is controlled by the venture capital company CVC Capital Partners. There are additional streams of revenue coming from race fees, trackside advertising, corporate hospital and official licensing.
These numbers, however, seem to be rather small when compared to those of soccer's Premier League, which is reckoned to be pulling in at least $4.6bn for the media rights for the current season.
There are 20 clubs in the Premier League and each play one another twice during a season, one match being at home, the other being away. This means that each team plays 38 games and there are a total of 180 games, each of which is worth around $25m in terms of TV income. Outside the UK the sport is shown in 208 countries with TV rights sold in 81 separate units, netting a cool $1.2bn. The rest of the money comes from the vast domestic rights deal.
When one considers that Formula 1 has only 18 events, the sale of TV rights is rather more impressive and F1 is definitely generating many times more income per event. This is not really surprising as although Premier League soccer is popular around the world, it is still only played by English teams and at English venues.
The F1 world is therefore slightly perturbed by the news that the Premier League has voted in favour of a proposal to add one new fixture each year, to be played at foreign venues. The additional 10 games are designed to spread the popularity of the league and thus increase its international significance - and earnings. This will undoubtedly have an effect on the sport sponsorship market.
The sale of the overseas rights for the Premier League doubled in value at the last round of dealing, underlining the league's ever-growing international popularity. There is a reason that Bernie Ecclestone and Flavio Briatore have invested in soccer.
The big question in F1 circles is how to meet the challenge and to remain a more attractive commercial option than soccer. The best way to do this is by increasing the TV viewing figures. This is what the F1 group has been doing by moving races into new markets across the world, hoping to grow the sport in the places where there is most potential for new viewers. Thus China and India have been priorities in recent years as they have vast numbers of people who might one day be convinced that F1 is the sport that they would like to watch on a Sunday afternoon.
Be that as it may, F1 is currently present in only three of the top 10 most populous countries in the world. With an Indian GP being planned and the possibility of a return to the United States in 2009 that will improve to five and there is talk (as always) of Russia but Indonesia, Pakistan, Bangladesh and Nigeria are almost never mentioned as possible venues for F1, if only because they do not suit the profile that the sport likes to think it has.
In the top 20 most populous countries things are little better with only three additional F1 races (Germany, Turkey and France). One hears occasional stories of plans for races in Mexico (11th), but never a word about the Philippines, Vietnam, Ethiopia. Egypt, Iran or Thailand.
Where Formula 1 is much more successful is its presence in weathly countries. Races take place in nine of the top 10 richest countries in the world, the outcast being the United States - the world's biggest consumer market. In the next 10 countries on the list there are only three with F1 events, although once again this may increase if Russia, South Korea, India or Mexico join the F1 calendar.
Balancing population and wealth is the secret and thus it is safe to say that F1 should be looking at India, Russia and Mexico as the primary locations where it can gain the most.
Significantly, two of the weakest F1 races are held in Britain and France, which are amongst the wealthiest nations: France being ranked fifth and Britain sixth. These are considerably more significant than the UAE (38th), Malaysia (39th), Singapore (44th), Hungary (50th) and Bahrain (96th), although the value of these races is that the governments involved are willing to pay whatever is asked of them.


www.grandprix.com

[Racer Duck]

I wonder how the writer justifies Monaco and Hungary? they're certainly not high up on the population list nor the wealth list...

[DOF_power]

Hungary right now makes no sense and I think it will go.
It's an 80s race, the first in communist Europe, in the days of glasnost and perestroika.
Monaco is the big race of the championship and part of what was once the triple crown of motorsport (Indy 500, Monaco GP and 24h of Le Mans). It won't go much like Daytona won't go from NASCAR.

[Racer Duck]

I agree. on both points.

In fact, I suspect Qatar is getting some looks .. lots of other series are holding events there and everyone seems to like it.

The writer also stopped short of whining about the US not having a race, though he mentioned it several times.

So, DOF, in your opinion, is there a track in the US that would be fitting to hold the "US Grand Prix"?

[DOF_power]

>
^ The only one suited is the Indy despite the fact that the inner course is too mickey mouse and needs upgrading and the 2005 problem.
All other tracks, while quite terrific (Road America, Watkins Glen) are only good for Indy/CC open wheelers and LMPs but not for the F1s. The F1s cars are (way) too extreme for these circuits and the FIA has a problem in keeping the cars in the 5 to 6G area (Indy 2004/2005 problems, Turkey 2007, Japan's Suzuka, Belgium's Spa).

[Racer Duck]

You didn't mention Daytona or Infineon. Do they suffer from the same type problems as Indy and the others?

[DOF_power]

>
^
Unless there's changes done apart from Indy I don't see any track suited.
All need upgrades, shorter versions and added even chicanes to slow the cars.
Shame cause I would have liked to see the cars on these .

BTW Infineon kind of reminds me a bit of the old Spa or the old Nurburgring, witch means its got the same chance to make it like these two.
Wonderfull tracks all of them, but it's asking for serious trouble.

[Racer Duck]

So, is the problem the top speed that can be attained, the max G's in any particular corner, the track width, or something else? I'm getting pretty confused here 'cause many other series run on these tracks and only a have problems with very fast or big cars.

[DOF_power]

Originally Posted by Racer Duck

So, is the problem the top speed that can be attained, the max G's in any particular corner, the track width, or something else? I'm getting pretty confused here 'cause many other series run on these tracks and only a have problems with very fast or big cars.

There's something of everything from what you've mentioned. The tracks would need both proper runoff areas, catch fences, resurfacing, tire walls, some chicanes, and even SAFER barriers would be nice.