Q&A: Circuit of the Americas president Jason Dial on F1 year 2 prep

1 Comment

As Circuit of the Americas in Austin prepares for its second United States Grand Prix, we had the opportunity to speak with new track president Jason Dial. Dial, a veteran of Procter & Gamble for nearly 20 years and most recently chief marketing officer for the Tampa Bay Buccaneers, has hit the ground running in his first month.

MST: Given your background, you see sports in several different contexts. How does a “race fan” compare to a “football fan,” per se?

Jason Dial: You realize going in that in F1, or in NASCAR, the fan is avid for different reasons. For a race, you’re usually backing a driver. NFL allegiance is usually skewed toward where you grew up, and since I grew up in Detroit, I was a Red Wings/Lions/Tigers/Pistons. Here, you’re a driver, and certainly in F1, a team fan.

MST: Last year’s race had the huge buildup, but it was also the first major event for a brand new facility. What were the pressures leading into that which you heard?

JD: I’ve been here a month, so I wasn’t here through the opening. But I heard things as simple as making sure the fences and gates were installed correctly, and making sure things were right from an ingress/egress standpoint.

Easy to forget, but 18 months ago this was fields. That’s when I tell people about seeing this place, that the staff worked around the clock to make it work.

This year it’s more planning, and making sure our transportation plan has sufficient infrastructure. We’re thankful that 94 percent said they’ll come back for another race; that’s the thing we need to see to grow our fan base 3-5 years down the road.

source:  MST: How has having 5-6 additional race weekends this year helped the preparation for this weekend? What are some of the great achievements?

JD: We’re celebrating our millionth fan in one year. And that’s an incredible feat on many levels, not just business operations, but really showcasing Austin. I was at Procter & Gamble for 18 and a half years, and you need time to develop a level of critical reach to justify an investment. We want people to say, “Wow, I’m going to Austin.”

MST: How does this race then avoid the so-called “sophomore slump” to sustain the promotional efforts for year two?

JD: I think first of all, 94 percent said they’d come back, but they didn’t say “come back next year.” What we’ve had to do is continue to build awareness and excitement, and expand the experience. We have the fan fest for instance, which is free, and magnifies the entertainment value of Austin. We’ve also built up our digital marketing fairly heavily.

We’re competing for everyone’s time and treasure. If we’re not compelling enough, people won’t come to Austin. F1 is amazing, but everything is amazing. We are integrating a lot more live music, because that is authentically Austin. It’s very important because this is the “live music capital of the world.”

Between the Longhorns (Texas game on Saturday), live music and entertainment, we need to expand our footprint. But having six stages, 12 blocks, music almost all around the clock all free downtown is great to have.

MST: Any concern about the UT game on Saturday?

JD: I don’t think it’s ideal and we tried to avoid the conflict, but to be honest some others come because they are in for the game and wouldn’t otherwise. The reality is that most hotels require a 4-night minimum. So what do you do for the other 3 days?

We know 55 percent of our fans bought tickets from outside the state of Texas. Over 50 percent are coming for first time. We have all 50 states and more than 40 countries in attendance. We’ve done a good job of creating compelling content.

MST: That will transition nicely into asking about ticket sales. Are they on course to match or exceed the first year?

JD: Yes. We’ll be up 30 percent on general admission this year, and new this year, people can buy just the race day ticket. It’s $129 for a GA and up; for $229, a reserved bleacher seat. Our attendance will be very strong, over 250,000 for the three days.

MST: What’s been your racing integration like?

JD: I think what’s great about our calendar of racing, is that it can be very different for different series. F1 versus vintage for instance? It’s pretty amazing to watch the muscle car era around the 3.4 mile track, where you’ve got a Shelby and a Sting Ray battling for the lead! That’s a different fan than the F1 fan.

We need to continue to appeal to a very diverse consumer. What we’re trying to do is think of Circuit of the Americas as an entertainment destination. And it’s always amazing to have (different generations) because that’s what everyone can relate to.

MST: Do you have a particular favorite part of the track?

JD: I’ve only been here a month to see the vintage race. But I’d say based on all the walkthroughs, I like Turn 1 the most, because you’ve got that hairpin after the rocketing up the hill. That one’s probably my favorite. Otherwise Turns 18/19 are very good if you’re elevated. There are several great general admission places.

The drivers love it. When you get drivers raving about the complexity, the challenge, the design, that’s when you know you’ve hit something special. It’s so amazing to watch them go through here. But then to have to break it down really fast, and put it in layman’s terms, I couldn’t believe how challenging it was with a 40 mph go kart up the hill! That gives you a brief idea of how tough it is.

MST: The USGP has, for several reasons, always struggled to “stick” at a single facility. What’s COTA’s “master plan” to ensuring OK, this is it for the next 5-10-15 years?

JD: We’re very confident and the big difference here is only 9,000 of our seats are permanent fixtures. We build to demand. We’re not bound by concrete. But we’re purpose-built for racing and other events as an entertainment destination.

This year you’ll see more high-end hospitality and GA. We’ll read our consumer reviews. That’s part of our DNA from P&G is asking what the consumer wants, and making sure we’re delighting them. People said they want to bring clients in. We have families that love general admission. We’ll be up 30 percent on that.

The calendar of events helps too. A lot of the places that struggled didn’t have 19 concerts to diversify. It’s a portfolio play.

We’re not just F1. We absolutely want to have F1 for foreseeable future, and it’s very important we do. From an international attraction play, we have to showcase how incredible of a brand F1 is.

But we want to make sure we grow our MotoGP event. We have the X Games coming in June. We’ll have another incredible other festival in May we’re getting ready to announce. And the versatility helps us with our television partners, NBC for F1 in this case, to be one of our strategic advantages.

How do we make sure we do this and market the hell out of it? We make it compelling, and sell it to the people.

Street race in Vietnam could lead Formula One’s Asia expansion

Formula One logo
Leave a comment

TOKYO (AP) — Formula One is expected to add more races in Asia, including a street circuit in the capital of Vietnam, a country with little auto racing history that is on the verge of getting a marquee event.

“We think Hanoi could come on in the next couple of years, and we’re working with the Hanoi government to that end,” Sean Bratches, Formula One’s managing director of commercial operations, told the Associated Press.

There is even speculation it could be on the schedule next season, which Bratches rebuffed.

Vietnam would join countries like Azerbaijan, Russia and Bahrain, which have Grand Prix races, little history in the sport, and authoritarian governments with deep pockets that serve F1 as it tries to expand into new markets.

“This (Hanoi) is a street race where we can go downtown, where we can activate a large fan base,” Bratches said. “And you have extraordinary iconography from a television standpoint.”

A second race in China is also likely and would join Shanghai on the F1 calendar. Bratches said deciding where to stage the GP will “be left to local Chinese partners” – Beijing is a strong candidate.

Bratches runs the commercial side of Formula One, which was acquired last year by U.S.-based Liberty Media from long-time operator Bernie Ecclestone.

Formula One’s long-term goal is to have 24-25 races – up from the present 21 – and arrange them in three geographical segments: Asia, Europe and the Americas. Bratches said the Europe-based races would stay in middle of the calendar, with Asia or the Americas opening or ending the season.

He said their positioning had not been decided, and getting this done will be slowed by current contracts that mandate specific places on the calendar for several races. This means eventually that all the races in Asia would be run together, as would races in Europe and the Americas.

The F1 schedule is now an inefficient jumble, allowing Bratches to take a good-natured poke at how the sport was run under Ecclestone.

“We’ve acquired an undermanaged asset that’s 67-years-old, but effectively a start-up,” Bratches said.

Early-season races in Australia and China this year were conducted either side of a trip to Bahrain in the Middle East. Late in the season Formula One returns to Asia with races in Japan and Singapore.

The Canadian GP this season is run in the middle of the European swing, separated by four months from the other races in the Americas – the United States, Mexico and Brazil. These three are followed by the season-ending race in Abu Dhabi, which means another trip across the globe.

“With the right economics, with the right structure and cadence of events across territories, 24 or 25 is probably where we’d like to be from a longer-term standpoint,” Bratches said.

Big changes are not likely to happen until the 2020 season ends. This is when many current rules and contracts expire as F1’s new owners try to redistribute some income to allow smaller teams to compete.

“There’s more interest than we have capacity in the schedule,” Bratches said, firing off Berlin, Paris or London as potentially attractive venues. “We want to be very selective.”

“Those cites from an economic impact standpoint would find us value, as do others around the world,” Bratches added. “It’s very important for us as we move forward to go to locations that are a credit to the Formula One brand.”

An expanded schedule would have to be approved by the teams, which will be stretched by the travel and the wear-and-tear on their crews. The burden will fall on the smaller teams, which have significantly smaller revenue compared with Ferrari, Mercedes or Red Bull.

Bratches also envisions another race in the U.S., joining the United States Grand Prix held annually in Austin, Texas. A street race in Miami is a strong candidate, as are possible venues like Las Vegas or New York.

“We see the United States and China as countries that could support two races,” he said.

Liberty Media has reported Formula One’s total annual revenue at $1.8 billion, generated by fees paid by promoters, broadcast rights, advertising and sponsorship. Race promotion fees also tend to be higher in Asia, which makes the area attractive – along with a largely untapped fan base.

In a four-year cycle, F1 generates more revenue than FIFA or the International Olympic Committee, which rely almost entirely on one-time showcase events.

Reports suggest Vietnamese promoters may pay between $50-60 million annually as a race fee, with those fees paid by the government. Bratches said 19 of 21 Formula One races are supported by government payments.

“The race promotion fee being derived from the government … is a model that has worked historically,” Bratches said.