Formula 1's Growing Allure: From Hollywood Stars to Investor Interest
How Formula 1 Attracts Fans and Investors
Silverstone - Brad Pitt races in a golden shining car, fellow actor Ryan Reynolds even invests in a racing team. However, it's not just Hollywood that is drawn to the ongoing Formula 1 boom.
"Apparently, Formula 1 is very interesting all over the world," former Formula 1 driver Timo Glock told the German Press Agency, adding with regret, "It's dramatic to see that we in Germany cannot benefit from it." Germany is once again absent from the 2024 racing calendar.
The Formula 1 itself is thriving as well. The filming of an expensive Hollywood movie with Brad Pitt before the Silverstone race this weekend is just one of many indications. Since its acquisition by US company Liberty Media, the racing series has managed to better cater to the needs of potential fans. The transformation is currently happening impressively fast, as stated by Formula 1 CEO Stefano Domenicali: "Things that seemed impossible a year ago can be achieved in an instant today."
Recently, Alpine Racing revealed its value to be around €826 million. The French racing team is currently in the midfield of Formula 1 and is far from winning a World Championship title. However, Canadian actor Reynolds and his colleague Rob McElhenney are still investing in the team, along with other investors, for a sum of €200 million.
"Previously known as a sport in which fortunes were squandered in a few years, often with little or no return, it appears that the numbers in Formula 1 are adding up," wrote the British newspaper "The Guardian" in response. Domenicali also recalls, "There were teams in the past that were sold for a pound, and now the market is offering almost billions, and they (the teams) are rejecting it. The more everything grows, the stronger the business foundation on which we work."
According to a recent analysis quoted by the sports business platform Spobis, an acquisition of the Ferrari team would cost around €2.85 billion, reflecting an increase in value of around 130% since 2018.
In the first quarter of this year alone, Formula 1 managed to increase its total revenues compared to the same period last year. From approximately €326.6 million from January 1 to March 31, 2022, revenues for the same period this year grew by $21 million to approximately €345.6 million.
Red Bull Team Principal Christian Horner already stated a few weeks ago in Miami that Formula 1 has never been in a stronger position. "We are experiencing new markets, new growth, new fans, and a new target audience of fans." According to the President of the International Automobile Federation, currently more than five teams have expressed their interest in joining Formula 1, although Mohammed Ben Sulayem admitted in an interview with the news agency AP that not all of them are serious contenders.
The New Formula 1 Approach: Accessible and Engaging
Glock believes that one of the reasons for the racing series' boom is that fans now have more insights than ever before. Formula 1 was long seen as unapproachable. "Allowing a glimpse behind the scenes has brought a lot of positive aspects to the sport," said Glock, referring to the Netflix series "Drive to Survive." However, he wishes that TV broadcasters were also allowed to show more to truly capture the essence. The former Formula 1 driver knows both sides, as the 41-year-old is also a TV expert for Sky.
The paddocks are no longer exclusive to a highly exclusive circle; often, there is a lot of hustle and bustle. This is especially true at Silverstone, where filming for the planned Hollywood film with Brad Pitt has begun. The crewFormula 1 Fans and Investors are Attracted by the Sport's Appeal
Silverstone - Brad Pitt speeds in a gleaming golden racing car, while fellow actor Ryan Reynolds invests in a racing team. However, it's not just Hollywood that is captivated by the current Formula 1 boom.
"Apparently, Formula 1 is generating significant interest worldwide," former Formula 1 driver Timo Glock revealed to the German Press Agency, although he expressed regret that "we in Germany cannot benefit from it." Germany's absence from the 2024 racing calendar is a cause for concern.
The Formula 1 itself is thriving under the ownership of US company Liberty Media. The filming of an expensive Hollywood movie featuring Brad Pitt at Silverstone this weekend is just one example of the sport's growing appeal. Formula 1 has been rapidly adapting to meet the needs of potential fans. Formula 1 CEO Stefano Domenicali recently remarked, "What seemed impossible a year ago can now be achieved in an instant."
Investor interest in the sport is also on the rise. Alpine Racing recently revealed a valuation of approximately €826 million. Despite Alpine's current position in the midfield of Formula 1, Canadian actor Ryan Reynolds and his colleague Rob McElhenney have invested €200 million in the team, alongside other investors.
The Guardian newspaper commented on the changing financial landscape of Formula 1, noting that it was previously a sport known for squandering fortunes with little return. However, the sport's economic figures are now proving favorable. Domenicali recalled past instances where teams were sold for a mere pound, whereas today the market is offering potential valuations reaching into the billions, which some teams are rejecting. The growth in all aspects of the sport is solidifying its business foundation.