On the Dark Road and Why Formula 1 Needs the World

The performance of a company is reflected in its sales; in linking to one market eliminates potential profit and expansion. 

Victoria Secret was making some money in the beginning, however that income seems like a lost dream if today’s profit levels are viewed.  Expanding into newer markets guaranteed that company greater profit, potential income, and stability.

F1, as a company, must follow suit; yes one must tread softly among potential markets before picking out the ultimate prize, but it cannot shy away from further trophies.  One of the smartest moves in F1 mirrored the ever present European character of expansionism.

In avoiding the 1930's American idea of isolationism, F1 has managed to establish itself as the pinnacle and the most recognized form of auto racing. F1 needs other markets to maintain that position to not fade away aw a relic of the past.  F1 needs not only Europe, but it needs the entire world.

If one considers F1 as a corporate entity, a company, it becomes far easier to really see where it is heading, and perhaps understand its true nature. 

F1 indeed is a company, it has its CEO, its presidents of the different divisions that make up the business, or as they are known, the team principals.  While they compete amongst each other for the ultimate prize, they work together towards the colon goal, its survival, and profit. And present as well as future stability. 

All the goals are related; the performance as well as competition among its departments stimulates growth, while the unpredictable success of the different departments in their drive towards the championship adds to the value and potential of the company.  Being able to compete on the world stage is vital to F1; its presence in one market rather than all would not only make F1 a failure, it would make the sport obsolete quite quickly.

Essentially, by limiting its presence to the European market, it would satisfy the many European race fans, however the character of F1 would be lost, but more importantly it would fail as both a sport and a business model. 

There are sports leagues out there, NASCAR being the best example, that have flourished in America because it is truly American; US motorsports fans have embraced the sport because the product was not only conceived in America, it used American products.  The US is a proud nation, and NASCAR has benefitted by playing on the idea of a pro-American sport.

Baseball, NFL, and even Basketball to some extent, have gained huge support because they have American character and hence are aimed at Americans; “why should we spread to the world if we are the best nation in the world, and if they are better, let them come and challenge us on our own diamonds, ovals, and fields.”

Yet, even NASCAR and the NFL are finding out that by adopting isolationism as its economic approach limits its potential, income, and potential for future expansion.  The failure of keeping within one market has been realize by the NFL, and NASCAR; NFL has held games outside of the United States, in both England and Canada; NHL now opens its seasons in Europe; NASCAR has held races in Canada, and is considering Mexico as its future market, and is in talks with the DTM. 

If a company believes in its product it will look outside of the market it has succeeded in.  If there is a market for potential income why not target it?

More importantly, by limiting itself to geographical borders and staying within such confines means a company is staying within the confines of a specific market, rather than realizing its potential, spreading out, increasing profit, and expanding further.

Staying within the confines also has a negative effect on the company; sponsors wanting global exposure will withdraw their funding, as their potential for exposure is dictated by a company’s decisions and its global presence. 

Red Bull understands that fact; F1 targets global markets, but has little presence in the heartland of the United States, so the company entered NASCAR as well as MLS; it has no exposure in winter so it has signed ski jumpers Adam Malysz and Morgenstern, skiers Svindal, Kraus.  Red Bull wants exposure in the youth market, so Travis Pastrana, Tanner Hall, Tadeusz Blazusiak, and Tanel Leok are all under their wing.  If the Red Bull site is examined there are thirty four pages of athletes, each representing a certain sport, and hence a specific market that Red Bull has gained exposure in.

In spreading out, Red Bull has become one of the most recognizable companies.  Just as F1, Red Bull understands that limiting itself to one market results in lost potential; several years ago a specific Canadian corporate travel company lost a few clients because they did not have the global presence their competition enjoyed.  The company may have offered a superior product in Canada, but by being forced to limit themselves to being competitive in the Canadian market only, the company was losing out on potential income and opportunities.

Sponsors with ties to F1 are aware just how much exposure is worth; not only do the sponsors seek greater exposure through presence in F1, they also switch from team to team looking for greater access to viewers; Etihad once sponsored Midland but the team’s misfortune, uncertainty on future, lack of current stability, as well as a lack of exposure resulted in the sponsorship switch to Ferrari.

Eddie Jordan still maintains that Vodafone was going to sign with Jordan GP rather than Ferrari; if the rumor is true Ferrari’s name, position in F1, and place on the grid vs. Jordan’s, certainly made the decision who to sponsor easier.

It is the global presence of F1 that makes it appetizing to current and potential sponsors.  F1’s place in sports, as well as society will attract global as well as local sponsors, seeking greater exposure.  While F1 provides such exposure for these companies, it is also these companies that provide equal or greater exposure for F1; Formula one can gain exposure among people who have never heard of it through a company’s sponsorship of a team and the sport.

The influx of new fans, combined with ones already established as the sports followers, presents a very enticing opportunity to sponsors looking for greater exposure and hence better sales, and greater exposure is not achieved through investment into a company with presence in a single market. 

Essentially F1 benefits through access to supporters of specific sponsors, and sponsors benefit from F1’s global presence.  In having access to a global following F1 expands its exposure, and presence, but while F1 remains a business, it is first and foremost a sport. The economic or business side of the F1 is not the only reason why F1 must remain global.

Stadium in Japan are filled to the brims, Cuban, Dominican, Canadian, and Puerto Rican boys dream of the following that these Japanese superstars enjoy, and bask in similar glory years later.

It is not F1 that is in question, it is baseball, and while baseball experiences a huge following in Japan, Cuba, America, and several other nations, the actual series that identifies its championship as the World Series is played between the two North American teams.

The argument could be that the team comprise of World Athletes playing for private teams, hence this is indeed a world series.  These are not teams representing America or Canada, but then again neither NHL, nor NBA calls their championship a World something.  In the end the World Series is nothing more than a competition among two clubs vying for a championship of North America ignorant to the existence of outside leagues or countries.

And it is this scenario that F1 must avoid.  F1 must cling to its sports roots and World Motor race competition; F1 needs to be relevant, in sports teams, as a world competitor.

Because it is the character of global competition that gives F1 Relevance.  Nations are represented in all positions within the teams, and each individual position is dictated by their professional experience.

F1, wherever it goes, does have a following; it could be a thousand people in China, five million in Brazil, or maybe two hundred thousand in Montreal, but the fact remains that there is a following.  Fans will line up for ours to get Lewis Hamilton’s autograph, and others walk the race track to collect rubber marbles from the Grand Prix.

When Robert Kubica crashed Italian fans drove for miles to wait outside the hospital; fans have earned themselves three hundred dollar speeding tickets rushing across two provinces to a qualifying session; others get up at four in the morning to watch the season opener.

Regardless the hurdle, fans will overcome it to participate in F1, to be near their favorite driver, to be a part of the F1 circus.

The business may be the brain of F1, but it is the human factor that is its heart.  Without one or the other an animal cannot evolve to its potential; without the hear F1 would die, and without the brain the sport would be outperformed.

Perhaps NASCAR’s greatest decision was to consider non-US races.  People watching in front of their TVs wanted to smell, hear, feel the American Motor-racing experience.  BY not allowing this opportunity the sport would survive, but only while its popularity lasted in the US.  If it waned there, the sport would eventually die.

IF F1 remained solely European the sport would be dismissed as ski jumping has been by outside of Japan and Europe.  Some fans may argue such a following is enough, but is it?

By becoming a world competition the sport has grown in character.  Suddenly fans became passionate about the racing, and teams such as Honda, Super Aguri, Footwork, and Eagle were born. 

Japanese manufacturers saw the sport as a vehicle to advertise; American teams saw it as a way to promote economic stability and American culture, etc.  Regardless of where a team has come from, its participation in the sport has provided excitement to what may have previously been subdued. 

Inheres by non-European teams has led to the East meeting the West, and West meeting the East.  The understood potential has evolved a simple demo race has evolved into one of the most sophisticated and luxurious races, and has led to the birth do Ferrari World.

The World character of F1 makes the competition relevant as well as exciting.  A French privateer can win the Monaco Grand Prix; an Austrian team wins both championships, and for the first time Dabrowski’s March can sound through the PA speakers.  The promise of “equal” competition guarantees F1 a global future; an Italian team has as much an opportunity to win the championship as a British, French, or Austrian team does.

Through maintaining a global image and character F1 invites Venezuelan, Polish, Israeli, Spanish, German, and drivers of many other nations, thereby improving the viewership numbers, while at the same time bringing the world to F1.

The sport must retain its name, and not lose its character of world championship by limiting the nations represented to only two, by mailing itself a series contested by the few; it must remain a global championship.

In recognizing the world as a battlefield for the championship, the series grows in its following, as well as relevance.  How many race series can compete with F1 in terms of the number of countries represented through past and present Grand Prix locations, drivers, mechanics, team principals, and other team members?

F1’s advancement cannot seize, F1 needs to look forward, to move forward.  F1 needs to expand to newer markets, newer countries; to bring its excitement to more race hungry fans, to remain an actual World Championship in spirit, not just the title name. 

F1 cannot sacrifice its roots, or its oldest cathedrals.