Opinion: Liberty Media Takes The F1 Driving Seat

Robin Clarke, global head, Publicis Media Sport & Entertainment, looks into the future of Formula One following its multi-billion dollar takeover…

Formula One is one of the few truly global sports; at least that’s what the sales patter has been for as long as I can remember. Liberty Media and Chase Carey may finally make that a non-debatable point. Not immediately, but in the coming years. Most importantly they will have a long term vision; a roadmap for how to take a sport with tremendous heritage and fan base and land it firmly in the multiple connected screens owned by millennials and generations to follow. The chance to breathe new life and revenues into an already solid business was clearly too good to turn down.

F1 under Bernie Ecclestone has seen tremendous growth in the 40+ years he’s been at the helm; for this he should be applauded. CVC has also made a great investment with a strong return. But the last few years have seen the sport and its audiences flat line. Yes, it has been to new markets including Azerbaijan, Russia and India but it’s done so with a product and a platform that is somewhat in flux. Near constant regulatory changes to teams on car specifications, race qualification, budgets – the list goes on. The product has struggled to evolve successfully and that causes damage to the brand in reputation and profile. It seems stuck between the old model and the new world model.

Step up Liberty Media and Chase Carey.

F1 is referred to at the first instance as ‘sport and entertainment;’ the American way, the American model. Much will be made and it should rightfully excite those supporters of the sport that we now have a US media savvy investment company in the driving seat. Their track record in this space is strong and highly reputable; they understand consumer needs and the platform development required to make success happen. We can expect this to come in advancement of ideology, technology, personality and geography:

Ideology 
A clear vision and road map for the sport at a governance level; it’s already been mooted teams will be able to invest in the F1 property itself, creating more democracy amongst stakeholders and teams when it comes to the shares of the revenue spoils. Ultimately we know this will make all cars on the track more competitive and dilute the current scenario we find on the grid – Mercedes F1 winning 47 of the last 52 races.

Technology
Making the sport more clear, consistent and exciting for the teams and the audience by setting practices that stand the stress test of new consumers and fans, not just the avid supporters that exists in the current sphere. F1 is the world’s most high tech sport; that’s a selling point but in recent seasons it’s been a bone of contention and a barrier to entry for the casually interested viewer. On top of this it must also continue to address and invest in the demand for greener engines and less total emissions from the globe-trotting F1 calendar and its teams.

Personality
It’s entertainment, sport. We can expect to see a focus on bringing this to the fore for younger demographics and US audiences especially; with a wider format and genre entertainment that surrounds the main event. Some of this can come from within of course; aiding and promoting the big name drivers to entice new fans. Lewis Hamilton and shortly Max Verstappen by most accounts are big draws in the modern celebrity centric and star spangled world.

Geography
The intention to land the F1 platform in key markets with calendar consistency and growth to the fore. This will include breaking the US; the right venue with the right attendance demographic, teams, drivers, broadcast partners, digital outlets, social outlets and more. By making the investment and acquisition, Liberty Media must feel they are surely the ones to break the seal in the market that is ultimately their home base. Break the US and they will look back on this moment on time as a game changer for the sport and a game changer for Liberty Media; even at their current behemoth sizes.

Not everyone likes change. I fully believe they will here.