What does the Formula 1 expansion mean? Racing is in the fast lane
So after months of wondering whether Formula 1 would ever have more than 10 teams on the grid again, we have finally got our answer.
Late on Monday it was announced that F1 had entered into an agreement in principle with General Motors division Cadillac for an entry into the top level of global motorsport in 2026.
It hasn’t been a smooth process. The early proposition involved Andretti Global, a firm F1 chiefs seemingly didn’t want to do business with.
But the successful bid involves Dan Towriss, who took over from Michael Andretti at Andretti Global, and the famous Indy team in the shadows as partners.
What does this mean, though, and why does it matter?
Covid growth
Formula 1 may just be the one sport that massively grew as a result of the Covid-19 pandemic.
While the Premier League was played behind closed doors, millions were stuck at home having burned through their Netflix favourites.
Enter Drive to Survive, which turned Formula 1 into a global entertainment phenomenon.
Under Liberty Media, which purchased the series from CVC Capital Partners in a deal that valued Formula 1 at $8bn, the sport has changed dramatically. F1 is now valued at nearly $22bn.
It has become a place where hardcore fans are still interested, but where a new breed of fandom has been created surrounding not only the racing but the drivers, teams and team principals.
There was always a worry in Formula 1 circles that they’d never be able to crack the US, where NASCAR had traditionally ruled.
But, partly thanks to Gene Haas and his eponymous team, that’s been proved wrong.
Only two countries host more than one race per season: Italy and the USA. And our friends across the pond now trump our Italian neighbours by putting on three races, in Miami, Austin and Las Vegas.
F1 on the move
Formula 1 is heading west, while also returning to the likes of China, and a General Motors/Cadillac entry will only strengthen that foothold.
It is a mark of a sport that continues to grow and develop. It is a shining light for a sports industry that is often looking for direction.
Many clubs and organisations are creaking in a business where power is held by the few over the many; cricket and the Indian Premier League is the premier example of this but there are notable similarities in rugby union, tennis and football.
But with Formula 1 being in its own lane compared to the rest of four-wheeled racing it can hold its monopoly with little friction.
This week’s news marks another step on a journey in which Formula 1 is continuing its global conquest.
Where others seem to be standing still, Formula 1 is expanding, growing and looking for new markets.
So while fans of the sport, new and old, think it has become more of an entertainment product, for better or worse, the reality is that it is revolutionising how a sport globalises.
It uses its advantages well and manages to find ways to circumnavigate its negatives. That’s how you succeed in the world of sport business.