(Motorsport-Total.com) – Formula 1 has undergone rapid development in recent years, especially in commercial terms. The global fan base has grown significantly, with the sport succeeding in reaching new target groups. The proportion of younger and female fans has increased – also at the racetracks, which is reflected in attendance figures – and the same applies to its attractiveness in the USA.
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Part of this is linked to the sporting side – although this has raised questions among die-hard fans about how far Formula 1 should lean towards commercial expansion – while on the other hand, steps have been taken to open up the sport and attract viewers on platforms new to Formula 1.
The Netflix series “Drive to Survive” and the F1 film are the most significant examples of this.
Such steps require a commercial vision shared across the paddock, but this is precisely where Formula 1 still sees room for improvement. In an exclusive interview with the global edition of Motorsport.com, Formula 1 boss Stefano Domenicali explains that the premier class of motorsport can still learn from what happens in US professional leagues like the NFL and NBA.
“What we need to filter out from the discussion with the teams are their, let’s say, tactical discussions where they believe they have an advantage,” he says.
“There are many things we will never copy from US sports, but there is one element where I think we should learn – because in the US there is the Owners Meeting, when the owners talk about the business.”
“Business is about how much money you can make together and what regulations are in everyone’s best interest. In this regard, we are on the right track, but not yet there,” he emphasizes.
“We need to take a step as a system where everyone understands: On the track, you have to fight. You can poach an engineer from the others or the drivers. But when you come together and think with the vision for the sport in mind, you should pull together.”
Domenicali emphasizes that progress has been made, as the teams themselves have felt the commercial impact of Drive to Survive and the F1 film, both in terms of reach and sponsorship deals.
“We shouldn’t be different when we talk about the growth of what we do. It’s like a few years ago, when at the beginning, without naming names, some teams didn’t want to do commercial projects like Netflix or other things I’d rather not remember,” says the Italian.
“But don’t be selfish. If there’s a project that has a big, positive effect for everyone, let’s get involved. And a great example of understanding this was when I presented the film. The film was a huge success in raising awareness for our sport in places where no one knew anything about us.”
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Two essential differences from the US model
The explanation for why the commercial reality in the Formula 1 paddock is more complex than in most US sports is twofold. Firstly, it has to do with the ownership structure of the teams and the fact that team principals are usually involved in most discussions.
These – understandably due to their role – primarily think about the sporting side and less about the commercial aspects Domenicali refers to.
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“What I mean is that the owners in Formula 1 are different and diversified. In US sports, there’s one guy who owns a team. So when you meet with all the NFL owners, you have one person per team, and they know it’s their business,” says the Formula 1 boss.
“We are in a situation – and I say this with respect, don’t get me wrong, it’s not a criticism, but a fact – that the vast majority of our team principals are not the owners. Therefore, they correctly have their interests in matters that sometimes are not related to what would be good for the business.”
“That’s why we need to grow together in understanding: The more you are involved on a business level, the more you have to rethink and sometimes take off the cap of team interest,” says Domenicali.
Formula 1 is not always easy
Besides ownership, it’s a question of mentality, which Domenicali says can best be summarized by the motto “rivals on Sunday, business partners on Monday.” On the track, the fight must be fierce, but off it, the bigger picture must be considered.
“It’s an attitude. And it’s not easy because we are racers. I say ‘we’ because I also come from there. It’s about always being on the performance side. That’s great, but there are certain moments when we need a vision,” he says.
In Formula 1, however, this is complicated on several fronts. It shows not only in big issues like opening up to a Netflix series, but also in smaller matters like a TPC (Testing of Previous Cars) test, where competitors quickly point to a potential competitive advantage.
More importantly, Formula 1 and the FIA must always weigh commercial interests against the sport’s DNA.
They must ensure they don’t alienate old-school fans while continuing to attract a new and younger fan base – a crucial balancing act that has come particularly to the fore this year under the new technical regulations.
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