F1’s global expansion continues with Azerbaijan and Mexico

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The Formula 1 circus could be coming to a town near you soon, that is, if it isn’t already. Despite failed expeditions to India, Korea and Valencia in Spain, the sport just keeps going global.

The latest additions to the set list? Azerbaijan and Mexico. Two countries with contrasting reputations in motorsport, and they have subsequently met very different responses from the F1 community following their confirmation over the past three days.

The Mexican Grand Prix is an event that will be welcomed back with open arms next November, most probably going back-to-back with the United States Grand Prix at the Circuit of the Americas. The race was last held back in 1992 at Mexico City’s Autodromo Hermanos Rodriguez – named after legendary drivers Ricardo and Pedro Rodriguez – but was dropped for 1993.

Like we’ve seen in the United States, Formula 1 has enjoyed a revival in Mexico over the past few years. Much of this has been down to the success of Sergio Perez and Esteban Gutierrez, who currently race for Force India and Sauber. Unsurprisingly, they were pretty pleased with the news when speaking to the press earlier this week, with Gutierrez calling it a “dream come true”. Many of the team principals in F1 are also pleased with the news.

“It’s great to be going back to Mexico,” said Red Bull team principal Christian Horner. “Certainly my memories of Mexico were Nigel Mansell’s move on the outside of Gerhard Berger into the last turn; I just hope that corner is left intact. I think it’s fantastic for Formula 1 to be going back to Mexico.”

“The more the Formula 1 canvas expands across the world, the better it is for the sport and the teams and the sponsors,” Force India owner Vijay Mallya explained. “As far as new countries are concerned, like Mexico and Azerbaijan, fantastic news.”

Azerbaijan is more of a puzzler, given that it is a nation with very little motorsport heritage. The Grand Prix of Europe will be hosted in the capital, Baku, at a street circuit around the city, but this will not be its first major racing event. In fact, the city has hosted the Baku World Challenge, an event for GT cars, in 2012 and 2013. However, this is still very new territory for Formula 1.

If there isn’t a great legacy for racing there, why not create one? “If there’s no history of motorsport in Azerbaijan, one can always hope to create interest in Formula 1 with its attendant benefits,” Mallya said.

So we’re off to Baku in 2016, but might not be going to Monza the year after? Is it really right for the sport to be cutting classic circuits in favor of new venues?

“I think it’s all about balance,” Horner explained. “It’s about keeping the historical events and also bringing new events. I think Formula 1 has done a good job of that over the past few years. If there isn’t any interest in Formula 1, like we saw last weekend [in Germany], then why not go to a new market that is crying out for Formula 1?”

Is Azerbaijan really crying out for Formula 1, though? Hockenheim was slated last weekend for only bringing 52,000 fans through its gates for the German Grand Prix, but would Baku better that figure?

Some new races have unquestionably been a huge success, with Singapore being the best example. Baku seems a little more obscure and uncertain, though. Similar words of gold were spouted about the races in India (2011-2013) and Korea (2010-2013), which have since dropped off the calendar. The marketing and organization for the Baku race must learn from past mistakes.

There is a great focus in F1 at the moment about ‘fan engagement’, and how it can be achieved. There is a very simple trade-off: fan engagement versus profits. Want to fill the grandstands? Make the tickets cheap, but you’ll lose revenue.

There are some venues that are affected less than others. As Christian Horner pointed out, the three races before Germany – Canada, Austria, Great Britain – were all sell-outs and huge successes. It is likely that Mexico would join this group. For a show-run in Mexico City a few years ago, 200,000 fans turned out. It is this kind of market that F1 is right to be targeting.

As things stand for 2015, we’ll have a twenty race calendar featuring the existing nineteen plus Mexico. For 2016, the figure may rise to 21, or even 22 if New Jersey can get its act together. Some races may drop off the schedule, too. There is indeed a very fine balance between the old circuits and the new.

As the Austrian Grand Prix proved, it is sometimes possible to revisit old ideas to make progress. Mexico is another example of this, and the Autodromo Hermanos Rodriguez is set to play host to a great event next year. Baku will most probably fall into the same category as the other new-fangled races – Abu Dhabi, China, Bahrain, Singapore – that lack the charm and appeal of others, but instead revolve around lavish settings and facilities.

Azerbaijan may sound like an odd place to go to now, but so did Abu Dhabi; so did Singapore; so did Bahrain. Baku could yet prove to be a hit in Formula 1, but if it does indeed come at the cost of a legendary event such as the Italian Grand Prix at Monza, it would only be to the detriment of the sport.

‘Game-changing’ multi-year agreement will take INDYCAR, NBC Sports ‘to the next level’


NEW YORK – As the fourth Nor’easter in three weeks bore down on the Big Apple, it was tough to spot people that were clearly in a good mood.

But Jon Miller, president of programming for NBC Sports and NBCSN, was clearly in a good mood.

On Wednesday morning at 10 am ET, we all found out why: NBC will become the exclusive home of the IndyCar Series and the Indianapolis 500, starting in 2019.

The new three-year deal not only makes “The Greatest Spectacle in Racing” part of the network’s “Championship Season” – its collection of high-profile championship events from May to July – but also reaffirms NBC’s status as the home of motorsports television in the United States.

That status is something Miller doesn’t take for granted.

“It’s important people know that storytelling is in our DNA, and motorsports lends itself very well to storytelling,” Miller said as he, INDYCAR CEO Mark Miles and driver James Hinchcliffe made a snowy trek to the New York Stock Exchange to promote the deal on CNBC’s “Squawk on the Street.”

“We’ve had great success with the second half of the entire NASCAR season, and then we’ve had half of the IndyCar package [since 2009] … But we never had the real meat of the series and that didn’t set anybody up for success.

“Having the entire package of IndyCar now – all 17 races, qualifying, practice, you name it – really sets IndyCar on a strong path and solidifies NBC’s position as the home of motorsports. I think it becomes a property much like the Premier League, the NHL, and even the Olympics and the Triple Crown. We have 100 percent of the media opportunity and we can put all those great assets behind it.”

With the storm no doubt keeping some traders home, the floor of the NYSE was relatively subdued. But that made it no less important to be at the heart of Wall Street. Miles and his team are pursuing a new title sponsor for the IndyCar Series to replace Verizon, which will fully focus its efforts in the series with the powerhouse Team Penske going forward in 2019.

The new deal – which includes 8 races per year on the NBC network (with the remaining races going to NBCSN), live streaming of all races, and a direct-to-consumer package with NBC Sports Gold – gave Miles plenty to push for any potential backers. As for Hinchcliffe, he held his own nicely in an interview that also explored IndyCar’s global ambitions, the impact of technology on the sport, and of course, his spin around the ballroom on “Dancing with the Stars.”

On the ride back to 30 Rock, Miles was confident that NBC can play a big role in attracting a sponsor that can help the series keep growing.

“With respect to our work in finding the best title sponsor, it’s really important – and this has not been talked about much – but we expect to work with hand in glove with NBC’s sales,” he explained. “We have the opportunity to create packages which are both broadcast sponsorship and series sponsorship, I think, in a way that doesn’t come along very often.

“Usually, the media deal and the sponsorship deal doesn’t align like this, so we’re really excited about the offering we’ll have and the approach to the market we can take.”

Should the partnership with NBC bear fruit on that front and others, it will only add to the upswing that the IndyCar Series has had in recent years.

Hinchcliffe has been a witness to that. He entered the series in 2011, when it was trying to find its footing after the sport’s reunification three years earlier. After 13 years of CART vs. the Indy Racing League, getting everything back under one roof was not a smooth process.

But fast-forward seven years, and things have changed for the better. TV ratings and digital viewers have gone up. Race scheduling has become more stable and enhanced with the return of traditional open-wheel markets. And this year’s debut of the universal aero kit aims to pump up the action on the track, while also giving the cars a cleaner, meaner look.

Now, with NBC all in, Hinchcliffe is bullish on his sport’s future.

“This is a game-changing thing for us,” he declared. “If you look at the last four or five years, we’ve seen a steady growth in pretty much every measureable metric that there is – in a time where, globally, motorsports is in a bit of a downturn.

“The fact that IndyCar was able to rally against a global dip in motorsports interest, attendance, sponsorship – it speaks volumes to what we have been doing and this is just gonna take us to that next level.”