The Business of Motorsport News for January 28, 2022 – Marketing to Gen Z and More

There is a lot to digest in this week’s Business of Motorsport round-up including news from various series and tracks around the world, the greater motorsport industry as well as an interesting survey that deals with marketing motorsport to the Gen Z demographic. If you are looking to market to this demographic, as you should, it’s time to embrace TikTok!

Formula 1

• After nine years with UPS as a major sponsor, Ferrari has replaced them with a new Ceva Logistics partnership. As part of the deal, Ceva Logistics will become Ferrari’s official logistics partner and receive branding on the side of the team’s car, as well as on the drivers’ race suits and teamwear. The agreement, which is set to last for multiple years, also spans Ferrari’s GT Racing involvement and the Ferrari Challenge.

• This is an interesting one and it is not crypto related. Red Bull Racing has announced an exclusive partnership with PokerStars. The partnership will see fans offered with promotions, competitions, exciting content and incredible experiences all across PokerStars various platforms including PokerStars Casino, PokerStars and PokerStars Sports.

• McLaren’s Executive Director of Racing Andrea Stella has revealed the impact of F1’s cost cap on the team. “In my specific area, which is obviously a portion of the overall way we spend the budget cap, I think the main impact really is that there’s a lot of millions going into the freight business, as an operational element of going racing,” he explained.” He goes on to elaborate on the other major costs that are impacted in McLaren’s racing boss reveals F1 cost cap impact.

• If you are looking for more detail about the ongoing ongoing saga of the VW Group’s dance with F1, I have two great articles for you.
  • Dieter Rencken goes into considerable detail at Racing News 365 about what is at stake in Revealed: All you need to know about Porsche and Audi entering F1.
  • Scott Mitchell at The Race then brings us up to date on where things stand in Red Bull-Porsche, McLaren-Audi – have VW’s F1 plans progressed?

NASCAR

• If the events of the last Grand Prix in Abu Dhabi piqued your interest into the FIA’s legal system and structures, you may be surprised to know that a NASCAR official has recently become part of that very same FIA legal machinery. Read Forbe’s An Under-The-Radar Nascar Executive Is Taking The Series To The Biggest Stage In Motorsports for the background behind Gary Crotty’s fascinating journey from Florida to Paris.

• NASCAR’s upcoming Clash at The Coliseum opens door for the series to stage international races once again according to officials. But the most fascinating part is the role that iRacing played in setting up the venue for this very interesting experiment that has even non-NASCAR fans curious.

Formula E

• Are late changes to regulations ever a good idea? The FIA believes so as Formula E rules have been changed so Maserati can use DS powertrains.

Supercars

• Supercars is undergoing a number of changes as it ushers in its Gen3 car and it is not all related to what will race on the track. Speed Cafe looks at how the 100 percent ownership model is helping Supercars.

• They also answer the question “Could Gen3 Supercars race in overseas competitions?“

Tracks

There have been a number of developments regarding some pretty prominent race tracks in the off season.

• Spa is in the middle of massive renovations as gravel gradually returns to Spa as circuit shows progress and run-off changes to Eau Rouge and Raidillon are in the process of being completed. Thankfully the essence of the track will remain the same, only be much safer.

• Iconic Australian track Albert Park has completed its recent modifications ahead of the return of the Australian Grand Prix this April. Organizers have said that the changes are aimed at creating more overtaking opportunities.

• COTA officals were blasted by both MotoGP and F1 racers for the bumps at the American track in 2021 and the owners are acting on the concerns. They are undertaking track resurfacing to fix the bumps before either series is scheduled to race there in 2022.

• Finally, a revitalization plan has been revealed for North Wilkesboro Speedway. “The future of North Wilkesboro Speedway is bright,” says president and CEO Marcus Smith. “There is a great opportunity to revive this fantastic venue to be, not just a racetrack, but a place that can host a lot of events, a place that people will come to from far away and enjoy the community, enjoy the region and enjoy special events.”

General Motorsport Industry News

• Cryptocurrency-based fan platform Iqoniq, a company that has a considerable number of partnerships with F1 and FE teams, has gone into liquidation. This is just after major sports sponsor Crypto.com lost $35 million in a hack involving 483 users on its platform.

• Speaking of all things crypto, SportsPro Media has an excellent article on how motorsport is embracing the NFT movement. “Our interest in this space is about fans”

• Williams Advanced Engineering, the technology focused spin-off of the Williams Racing Formula One team, has been acquired by FMG for US$220m. The battery technology arm will be used to help the Australian iron ore producer reach net zero carbon goals. Who says motorsport can’t make a difference?

• Maurizio Reggiani has been announced as the head of the Lamborghini motorsports division.

• SRO Motorsports America announced staff promotions and additions to strengthen its growth in North America. SRO is expanding the team to support growth and customer service in key areas – operations, team relations, marketing, and communications. The U.S. team will collaborate with global SRO counterparts in Europe, Asia, and Australia. Full details can be found here.

• A few weeks ago I linked to the the first 3 videos as part of BMW’s Mbedded video series which chronicles the manufacturer’s journey to LMDh. Episode 4, The Ultimate Test has now been released. You can watch it below.

• As it enters its sophomore year, the SRX series has named Don Hawk as their new CEO.

• IMSA has acquired Historic Sportscar Racing (HSR). This asset purchase adds historic racing into the IMSA portfolio. From the HSR press release: “With this weekend’s 60th Rolex 24 At Daytona serving as an appropriate backdrop, the International Motor Sports Association (IMSA) and Historic Sportscar Racing (HSR) announced this evening an arrangement bringing HSR’s popular events and iconic, vintage and historic sports cars from throughout more than 50 years of IMSA and beyond into the IMSA portfolio.“

• Finally, a new study was released that highlights motorsport’s problem in attracting future fandom, specifically with the Gen Z demographic. Essentially everybody in the motorsport ecosystem needs to market where these kids are active in places like TikTok if the sport wants to attract them to motorsport and away from their phones.