Liberty Media has acquired the commercial rights to MotoGP which means they now own the commercial rights to two global motorsport franchises. It is the headline story in this week’s Business of Motorsport Roundup. I also have details on the financial boost that Las Vegas received from their inaugural Grand Prix, IndyCar’s ongoing attempts at introducing a charter system and the latest motorsport law developments.
It’s all in this week’s edition of the Business of Motorsport Roundup on Motorsport Prospects.
Motorsport Industry News
MotoGP
The big news in motorsport this week’s was no doubt the announcement that Formula 1 commercial rights holders Liberty Media have purchased the commercial rights of MotoGP from Dorna Sports. Liberty will take 86% of the shares of the Spanish company, with the remaining 14% remaining with MotoGP management.
While there are potential competition concerns with having Liberty own the commercial rights to F1 and MotoGP, something previous owner CVC could not do, Liberty seems to be confident they can overcome them. The FIM on the other hand have made it very clear that this deal is for the commercial rights to the series only as they are in fact the owners.
Here is a roundup of coverage of the deal as of the time of publication.
- F1 owner Liberty Media takes over MotoGP in $4bn deal with Dorna (Autosport)
- Liberty Media announces acquisition of MotoGP (MotoGP)
- F1 owner Liberty Media acquires MotoGP commercial rights (Racer)
- FIM Statement re: Acquisition of Dorna Sports S.L. by Liberty Media Corporation (FIM)
- MotoGP on the market: Does the series’ commercial performance justify a US$4bn valuation? (BlackBook Motorsport)
- Why Liberty’s sure it can own F1 and MotoGP despite 2006 precedent (The Race)
- Liberty Media Wants To Replicate F1’s Success With $4.5 Billion MotoGP Deal (HuddleUp)
- Liberty Media’s History of Revving Up Success Bodes Well for MotoGP (Front Office Sports)
- Liberty Media’s six part blueprint to ‘accelerate MotoGP growth’ (Motorsport Week)
- What we learned about F1 owner’s plans for MotoGP (The Race)
- MotoGP “not ruling out” joint F1 event under Liberty ownership (Autosport)
- Liberty Media reveals it is ‘not planning to change’ MotoGP (Motorsport Week)
- Negotiating F1 and MotoGP TV deals together “a non-starter” – Liberty (Autosport)
- Liberty “not planning to change” MotoGP under new ownership (Autosport)
In other MotoGP news, MotoGP has restructured its contract with the Aragon government to continue racing at MotorLand until 2026.
Formula 1
The economic impact of the Las Vegas Grand Prix ‘approached US$1.5 billion’, according to a report published by Clark County officials. Economic data from Las Vegas firm Applied Analysis found the direct economic impact totaled US$329 million, with the ripple effect of that translating to around US$587 million of local economic impact. The impact of overall visitor spending was US$884 million, with attendees spending 3.6 times more than the typical visitor.
You can read the full report from Clark County officials here.
For the 2024 Las Vegas Grand Prix, The Athletic explains why Grand Prix officials are keeping the 10 p.m. PT start time. “With regard to the actual event itself, on Saturday night, that 10 p.m. start time, we do continue to believe is the right start time. It aligns with some of the biggest shows and prize fights that happen in Las Vegas on a weekend by weekend basis. It also creates the opportunity for our legacy fans in Europe to be able to watch the race with a cup of coffee, just like we do here in America (for European races), and allow them to really be part of that weekend.”
With all the recent controversies in mind, Edd Straw explains how F1’s lack of leadership has been brutally exposed.
“The responsibility for this paralysis lies equally at the door of the FIA and FOM. When it comes to the stewardship of grand prix racing, with its great history, exciting present and hopefully long future, the top priority for both should be working together for the greater good. Their failure to get on the same page and collaborate fully reflects terribly on both sides.”
In Blinkfire’s recent weekly Insight to Share, they track Formula 1’s Rise on Instagram.
“Since the start of the 2024 season, Formula 1’s Instagram has experienced explosive growth compared to the 2023 season. The biggest callout: new follower growth. Formula 1 gained 927,900 new followers on Instagram during March, reaching 27.5 million total and nearly doubling their follower count from a year ago.”
In The Chill of Mercedes’ Post-Hamilton Winter Sets In, Olivia Hicks of Formula Flash looks at how the team’s split with Puma and Tommy Hilfiger is more than just a business deal.
“Amid Hamilton’s move, Mercedes is left with an open seat and a less marketable main character in George Russell. The posh 26-year-old British driver made for an odd counterpart to Hamilton’s brazen neon race day outfits and mesh blouses plucked straight off the runway. Russell, instead, fit the Tommy Hilfiger brand to a T. His fashion sense — made up of chinos, cashmere cardigans and oxfords — reflects his driving style: precise and overachieving but decidedly not groundbreaking.”
On the Motley Fool Podcast, Motley Fool host Ricky Mulvey caught up with Joshua Robinson and Jonathan Clegg, sports reporters at The Wall Street Journal and co-authors of the new book The Formula: How Rogues, Geniuses, and Speed Freaks Reengineered F1 into the World’s Fastest-Growing Sport to discuss the evolution of Formula 1 racing.
Public relations magazine Platform looks at PR in the Paddock: The Rise of Formula 1.
“Alexandra Schieren, founder of Alexandra Schieren Sport Communications, said that before this acquisition Formula 1 was more of a traditional sport. There was media access to the paddock; however, no one was allowed to publish moving images on social media from inside the paddock. This is because the view was that TV paid for those rights, so others should not have them for free. The acquisition was the point where social media became available for teams to use, and it opened the doors for media to reach teams and drivers on race day.”
In a wide-ranging conversation, Claire Williams, the former team principal of her family’s eponymous F1 team and one of the most prominent women in the sport, discusses with BlackBook Motorsport her career in motorsport, the challenge of growing female representation, and life after Formula One.
“45 years in Formula One is a really long time and it shapes your life, defines your character and who you are,” Williams reflects. “I lived and breathed Williams my whole existence, so four years out of the sport still feels quite surreal, if I’m honest, and sad.”
General Motorsport Industry News
In IndyCar news, while the series deals with the positive trend of growing grids, owner Penske Entertainment is getting closer to presenting its team owners with what it hopes will be the final version of its first charter program.
“The latest iteration of the charter system would make 25 charters available for the series’ entrants, with a limit of three charters per team. Determining the eligible entries for the 25 charters has been done by using the results from last season’s Entrants’ championship.”
While NASCAR seems to be unconcerned that Formula 1 is interested in racing in Chicago, drivers seem split on the interest the series has expressed in racing at Long Beach or adding more street races to the schedule for that matter.
“I’ll go wherever they tell me to, but I like the balance of what the schedule is right now,” William Byron said. “We can’t oversaturate it, but I like that we have four or five road courses. I think our schedule is fine the way it is; this year’s is probably the most traditional it’s been with having so many short tracks, kind of back to the roots.”
Formula E has come off a very successful Japanese debut with the Tokyo E-Prix earning overall praise. Additionally, the all-electric series has had record viewership and engagement gains.
- Cumulative TV Audience Surge: Season 10 has seen a remarkable 40% increase in cumulative TV viewership in its first four races, jumping from 62 million in Season 9 to 86 million.
- Live TV Audience Growth: Live broadcast audiences have grown by 37%, with 61 million tuning in live cumulatively compared to 45 million in the previous season.
- Social Media Surge: A significant 44% boost in social media impressions, reaching 351 million, while video views on Formula E’s platforms have skyrocketed by an impressive 134% to 267 million in Season 10.
- Web/App Engagement: The championship’s digital platforms, including its website and app, have attracted 28% more users totalling 1.2m.
- Fanbase Expansion: Impressively, the series’ fanbase has expanded by 37%, demonstrating Formula E’s ability to excite and innovate, as reflected in the significant increase in perceptions of the sport as ‘exciting’ (up 30%) and ‘innovative’ (up 42%); the total attendance at races also increased by 12%.
Can High Limit Racing challenge the World of Outlaws’ grip on national touring 410 sprint car racing, and what will this “split” mean for the sport? That’s what PRI Magazine looks at in Gamblers and Outlaws.
“When two national touring series start competing against each other in a particular discipline, racing industry veterans get nervous. These dreaded “splits” bring up haunting memories of business battles gone wrong—most notably the high-profile civil war that engulfed Indy car racing.”
Racer Magazine looks at how women are moving the WEC forward both on and off the track. “Crucially, this is a change that has occurred naturally. It hasn’t happened via regulation, or in response to protests or outside pressure. Instead, this has happened because the paddock is a meritocracy and everyone in it has earned their place. It’s a significantly more diverse place of work than it was 12 years ago and it continues to evolve by the season.”
SRO looks at assessing the significance of that first BPR race 30 years ago. “From the start the BPR appealed to amateur drivers but brought a fully professional approach. Proven teams such as Larbre and Freisinger Motorsport confirmed this, as did the TV cameras that came to document the very first race. Indeed, at a time when GT racing appeared to be a thing of the past, it presented a convincing case that it was in fact the future. GT cars took centre stage and committed enthusiasts like Rocky Agusta and Philippe Charriol – both much missed today – could compete at a high level while also enjoying their sport.”
Quick Takes on the Business of Motorsport This Week
- How an F1 deal ‘unleashed the beast’: William Storey’s three failed bids to buy a football club (The Athletic)
- Getty Images Acquires Motorsport Images, a Specialist Motorsport Archive (Getty Images)
- Lewis Hamilton Is Changing Lanes (GQ)
- Connor Zilisch: F1 Makes NASCAR Look Like ‘the County Fair, almost’ (AutoWeek)
- Andretti’s AI SPAC deal sees stock price plunge (Sports Business Journal)
- The “fashion evolution” that transformed F1 drivers’ helmet designs (AutoSport)
- The Takeover of Sports is Here: An Inside Look at Investment Banks (Profluence Sports)
- Motorsport Games Reports Fourth Quarter & Full Year 2023 Financial Results (Business Insider)
- Arctos Closes Second Sports Team Investment Fund With $4.1B (Sportico)
- Corporate crime in sport: New offences & increased risks to sports organisations webinar (LawInSport)
- Thomas Jackermeier Dismissed From Fanatec CEO Role (Overtake)
Motorsport Law Roundup
A look at some of the legal and regulatory issues and analysis in Motorsport this week
FIA member clubs and sport federations of the Americas have recommended the governing body takes legal action against those it believes slandered the organization and its president Mohammed Ben Sulayem.
“That accusations of impropriety and unethical practices propagated by some members of the print and digital media were intended for the sole purpose of causing harm to the FIA and its leadership, particularly the President.”
The Athletic looks in detail at the case that Felipe Massa is pursuing against the FIA and F1 over the infamous crashgate.
“What Felipe is doing sets a strong precedent for athletes in motorsport. The way Formula One is structured, with the Concorde Agreement and political arrangement between big teams and FIA/FOM, leaves little to no room for drivers, the pawns that risk their lives on a weekly basis, to even become aware of relevant information, much less participating in key decisions,” Bernardo Viana, one of Massa’s lawyers said.”
Motorsport Sponsorship & Partnership News
Here are the latest motorsport sponsorship deals, partnerships and related analysis that were announced this week
- Travis Shumake Announces Lineup Of Sponsors For Top Fuel Debut (Dragzine)
- SRO Motorsports America Sets Sail on a Thrilling Voyage with Pershing Yachts (SRO)
- Nova Motorsport named sponsor and tire supplier for British Hillclimb Championship (PMW)
- Nick Halstead reveals Crazy Carts livery (Touring Car Times)
- How This Long-Time Sports Business Executive Is Revolutionizing The Way Brands Do Sponsorships (Vetted Sports)
- ERT Formula E Team announces partnership with luxury watchmaker Chronoswiss, highlighting Formula E’s growing appeal (ERT)
- Racer Industries to continue Motorsport Australia support (Motorsport Australia)
- Major Mercedes Sponsorship Comes To An End After Lewis Hamilton Exit (SI)
- Jack Daniel’s & McLaren Racing Launch Whiskey Collab For F1 Season (Maxim)
- Williams Racing renews ties with Jumeirah Hotels & Resorts (Williams F1)
- NXT Gen Cup and VARTA deepens successful partnership (NXT Gen Cup)
- Formula E partners with Aggreko for sustainable events power (Formula E)
- More Than Equal to use Kitman Labs for female motorsport drivers in development program (Sports Business Journal)
- RSL Inks Multi-Year Extension for Radio Le Mans (Sportscar365)
- BFGoodrich to back Motorsport Australia Off Road Championship in 2024 (Motorsport Australia)
The Business of Running a Race Team
3D printing has become a valuable tool for professional racing teams when it comes to making quick and affordable parts. Learn more with Matt Stone Racing’s Jack Bellotti in the video above.
Team & Manufacturer News
Here is a roundup of the latest team news from around the world of motorsport
- Proton Reveals World Challenge Colours (Daily Sportscar)
- Gounon to Spearhead Three-Car Climax Mercedes Squad (Sportscar365)
- JLOC Delays EVO2 Upgrade For No. 87 Car (Sportscar365)
- Brabham and Astuti join new Mercedes AMG GT4 team Love Racing (SpeedCafe)
- Organizational changes announced by McLaren, as Sanchez departs (PMW)
- Arden confirms rumoured FREC exit as Monolite races to fill seats (Formula Scout)
- Stewart-Haas’s NASCAR future in focus amid charter sales chatter (Sports Business Journal)
- Nitro Motorsports Set for Two-Car Effort at Sonoma Raceway for Toyota GR Cup North America Season Opener (RTD Media)
- Komatsu bullish on Haas trajectory (Racer)
- Stenhouse striving to turn JTG Daugherty into giant-killers (Racer)
- GT World Challenge News Notebook – Driver Switch For Garage 59, Liveries Launched (Daily Sportscar)
- Behind the scenes of the Juncos Racing, Purdue University partnership (Autosport)
- GT World Challenge Asia Notebook, Two Absolute Audis, Three Climax Racing AMGs! (Daily Sportscar)
- TJ Speed Motorsports Returns to NOLA (USFPro 2000)
- HIGHSPEED Etoile Racing formed, hopes to support women racers (Checkered Flag)
- Ligier European Series Notebook (Daily Sportscar)
- Xcel Motorsport joins ROKiT British F4 Championship with Zack Scoular as first confirmed driver (British F4)
- Van Berlo, Swearingin in Re-Focused ACI Motorsports Effort (Sportscar365)
- TPC Partners With Dream Racing for Two-Car Lambo GT2 Effort (Sportscar365)
- Random Vandals Racing Stepping Up To GT3 Racing In August
Motorsport Movers & Shakers
Former Formula 1 engineer Rob Smedley is turning his attention to helping motorsport become a more diverse environment, but says there’s still a long way to go as he explains in a piece he wrote for Autosport.
“We have to get girls turned on to this at five, six years old – the age they come into the Bambino karting category. At GKL, we’ve got a lot of ex-F1 engineers and we’ve tried to relay STEM learning through the context of motorsport. We’ve built an online learning platform where each kid can complete a course. Teaching them about forces, electricity, materials, and the things that are important for engineers and scientists, through the context of motorsport, the kids get really into it. I was surprised.”
Author: Mark Boudreau
Mark is the publisher of Motorsport Prospects. As a former lawyer, he applies his legal background and research skills to assist race drivers by showcasing the resources they need to make their motorsport careers happen.
