Liberty Media is expected to make F1 enticing again
F1’s new Commercial Rights' owner Liberty Media enjoys full faith of many in the paddock including team principals who believe the American-based company can propel the sport to new dimensions in a bid to revive the sport's strained reputation.
F1’s commercial side is a rather complicated matter thanks to the number of interested parties and the subtle relations between the companies involved.
The Formula One Group which is a group of companies is responsible for the promotion of Formula One. This group has been run by Bernie Ecclestone for many years. It was primarily owned by Delta Topco which is part of the investment company CVC Capital Partners. Other shareholders are Bernie Ecclestone, the FIA and various other investment companies.
CVC Capitals decided earlier this year that it wanted to pull the plug on its F1 endeavour. It has held talks with different companies and finally made an agreement with the American Liberty Media.
The Colorado-based company acquires the majority stake in various steps. It is believed to have already taken over 17 per cent from the stake. The next step will take place in the first part of 2017 when it acquires further 18 per cent. The take-over will be then completed with a last step.
According to Toro Rosso team principal Franz Tost Formula 1 needs a new, fresh marketing strategy which should capitalize on the newest channels such the social media platform. The Austrian is sure that the owner Liberty Media is the perfect company to bring innovative ideas into the sport.
“We all know that Liberty Media is the best company to bring in all these tools which Formula One needs in future, the digital media, the social media and I’m convinced that their marketing strategy will find a way to bring Formula One forward, because we have some deficiencies and how they will do it we will then see, which strategy they will come up with,” said Tost.
Williams’ CEO Mike O’Driscoll hopes F1 can conquer a territory which it has never really managed to entice so far over its history: America. As Liberty Media is an American company, F1 could expand its boundaries there.
“There’s a great opportunity to expand the sport in the Americas, in North America and the USA specifically. I think it would need a greater critical mass of races, either on the East and West Coast as well. The digital component is key for reaching a younger audience globally,” said O’Driscoll.
McLaren racing director Eric Boullier agrees that the American market can be a new goal for the pinnacle of the motorsport.
“As far as Formula One is concerned, we agree that the US market is still very young, to be honest. We can do much more in America and North America”
However, the Frenchman sees F1 as a global sport and thinks there are many other areas which can improve the current global assessment of the sport. The business structure and the marketing are both areas where F1 has to make inroads.
“But Formula One is a global series and maybe the only global platform in the world as a sport, so we need to stay global. That means that we have plenty of room to develop the sport side, the business side and consequently, social media is key in any marketing tool box and before we can monetise, we maybe need to use this tool just to promote Formula One for the youngsters if we can do it in term of rights and then see the future. But again it’s global, it’s not only US,“ concluded Boullier.
