F1 on the ropes... and I don't even care.

[strad]

Either way, without the taxpayers' money, there would be no Formula 1 race held anywhere, that is the sickening part.

Big thumbs up X.
I'm sure you know but I think many don't, that Bernie even gets the rights and money for signage. The ONLY thing the promoter gets is the gate and a portion of food sales. They can't survive without handouts.
Everyone is worrying about the small teams but what happens when the tracks start pulling out?

[donskar]

Just a brief sidebar: TX is Republican. But Austin area (and other pockets) is Democrat.

[Carbon]

Some may disagree with your posts, but I love the passion of your posts Ciro, well done.

You can add Canadian GP as another tax payer supported event.

http://www.theglobeandmail.com/sports/m ... /?page=all

[langwadt]

The USGP gets money from Texas' Major Events Trust Fund.

(American conservatism doesn't extend to the business world. Corporate welfare is A-OK here.)

doesn't have to be welfare, 250,000 people over the weekend must add substantially to the local economy
they have to eat, sleep, etc.

[xpensive]

...
You can add Canadian GP as another tax payer supported event.

http://www.theglobeandmail.com/sports/m ... /?page=all

Some 15 MCDN of taxpayers' money per race?

The main sticking point is the amount poured into the race by the three levels of government – while Ecclestone is reportedly willing to accept a modest increase on the $15-million or so in public money his company receives each year, Ottawa doesn’t seem in a big hurry to add to its share of the pot.

[xpensive]

Just a brief sidebar: TX is Republican. But Austin area (and other pockets) is Democrat.

That figures.

[Richard]

No matter how you slice it, the fans have become irrelevant to the money making process.

Which is surely the only reason for ditching the BBC for Sky. Sky paid FOM a nice fee and the teams got £1m each, but the number of viewers plunged.

Then factor in how much F1 income (track, teams, FOM) is derived from sponsorship, surely they'd be worried by declining viewers? Obviously FOM can argue that pay TV attracts the fans with cash and losing the free to air paupers isn't a problem.

I think the the real benefit to sponsors is to advertise to the people who don't watch F1. Santander plastered the high streets in the UK with images of Button and Hamilton (until he left for Merc). They also mercilessly use Jessica Ennis. The recognition factor for these sports stars is huge even though very few people actually watch them. I mean who in the UK has ever seen Jessica Ennis running other than 2 races in the July 2012? Yet everyone knows who she is. Same for Button and Hamilton.

I'm sorry to say it, but the sponsors' targets are not F1 fans, they're going for recognition among the wider population, an association with a sporting hero. In fact it's better if people aren't fans, because the average non-F1 fan thinks Button is a golden haired angel loved by both grannies and pubescent girls. However that true F1 fan isn't worth a penny to a sponsor because we know Button's a swearing lazy alcoholic who smell like a tramp.

[bhall II]

The USGP gets money from Texas' Major Events Trust Fund.

(American conservatism doesn't extend to the business world. Corporate welfare is A-OK here.)

doesn't have to be welfare, 250,000 people over the weekend must add substantially to the local economy
they have to eat, sleep, etc.

That's the idea. But, at least here in the States, it usually doesn't work out so well on balance.

In the case of the USGP, Texas Governor Rick Perry, a Republican whose wit and wisdom make George W. Bush look like a Rhodes Scholar, wants to be president, and attracting an international sporting event under the illusion of economic gain looks good on a candidate's resume. That's the same story with enormous NJ Gov. Chris Christie's backing for a grand prix in New Jersey. It's all about prestige.

[Blanchimont]

doesn't have to be welfare, 250,000 people over the weekend must add substantially to the local economy
they have to eat, sleep, etc.

Yeah, it adds to one local economy. Let's say it has a positive impact of magnitude one in this area. But what about the 100 other places where this shift of money has a negative impact of magnitude 1/100?

[mrluke]

doesn't have to be welfare, 250,000 people over the weekend must add substantially to the local economy
they have to eat, sleep, etc.

Yeah, it adds to one local economy. Let's say it has a positive impact of magnitude one in this area. But what about the 100 other places where this shift of money has a negative impact of magnitude 1/100?

If people go to watch a major sporting event they pay for tickets, tolls, local food / shops / restaurants / camping gear / petrol / hotel maybe day trips to see local attractions / plane tickets / duty free etc etc

If they stay at home they eat a bit of their weeks shopping and pay the mortgage.

You aren't just moving the place the people spend their money, they are making purchases that they wouldn't if they stayed at home.

[Blanchimont]

Not in my opinion, let's say an average person spends 500$ for his weekend at a F1 GP. If he doesn't attend a F1 GP, maybe he'll go to a Nascar race, makes a trip to Disney Land, visits an xpensive restaurant, goes more often to the movies througout the whole year or...

I don't believe that the money spend on a F1 race stays on the bank accounts if a GP doesn't happen.

[Kiril Varbanov]

Bernie has given it a second thought - http://www.cityam.com/1416272452/caterh ... ecclestone

Wants to keep F1 exclusivity, too, by kicking online journalists out. That would leave out guys like Scarbs, too.

[Andres125sx]

Delivering the sport to a bunch of rabid fans actually seated in the stands and paying good money for the privilege? Meh,,,,,if they come, they come. If they don't, it doesn't make that much difference to us.

No matter how you slice it, the fans have become irrelevant to the money making process. Which is why the racing is so out of whack. Pleasing the fans has little to nothing to do with the financial success of the sport.

I have trouble understanding how that can possibly be a sustainable business model.

Because you´re a smart person and it´s not a sustainable business model



This is from Italy, but global numbers are the same, only that I didn´t find a graph wich is more illustrative. Pleasing the fans may have little to do with the financial success of the sport..... in the short term, but in the long term they are the only reason for F1 success. At some point BE forgot this lesson, maybe when his bank account reached 10 digits ...

He´s been trying to hide this reality bringing F1 to new countries with no F1 tradition where there are some millions of potential viewers to increase the audience. China, India, Singapore, Abu Dabhi, Rusia, Turkey, Malaysia.... those are many millions to increase the audience. But even so audience is decreasing, so you can make a guess about what´s going on on countries with F1 tradition

F1 is passing away, that´s the true, it may be a slow process, but unstoppable with current politics. BE is too worried about his bank account now, he´s literally bleeding F1

[MOWOG]

A most interesting chart, Andres. Thank you! =D> That's the kind of graphic that makes a complicated subject crystal clear.

Some 15 MCDN of taxpayers' money per race?

I remember a few years back when the promoter in Montreal was negotiating a new contract with Bernie and going around town telling the hoteliers and restauranteurs why their associations had to kick into the pot because the racing would bring X number of people to the area, who would spend Y number of dollars, leaving each of them with Z in extra profits.

I wondered at the time how this campaign differed from the good old fashioned protection rackets run by the Mafia.

I think the the real benefit to sponsors is to advertise to the people who don't watch F1.

That's an excellent point, Richard. I think I have not been giving that factor enough consideration in my thinking. Just two questions: Who the hell is Jessica Ennis and how do you know Jenson is an emitter of strong body odors?

[Richard]

Jessica Ennis won gold in the heptathlon at 2012 Olympics. She's got a nice smile and her background ensures she has a broad demographic appeal. Santander have ensured her image has been plastered all over the UK alongside Button ever since.

As for Button, no one is perfect so if he looks and sounds so nice he must smell awful to keep his karma in balance.