New boss of Formula 1 reveals plans for expansion into new American cities

FORMULA 1’s new boss has identified the new destinations that will host grands prix as part of his grand plans to shake up the sport.

Formula 1 may target several annual events in the USA.

FORMULA 1 was never going to stay stagnant for long after American media corporation Liberty Media purchased the motorsport giant.

You don’t buy out 100 per cent of the shares for a company in an $8 billion deal unless you envisage significant profit potential.

Now new chairman Chase Carey, formerly President of 21st Century Fox, has revealed a glimpse of how he plans to shake-up the racing series.

In an interview with formula1.com, Carey said the United States is the obvious market for the sport to target for immediate expansion.

Formula 1 has scheduled the United States Grand Prix at the Circuit of the Americas in Texas since signing a deal worth a reported $250 million to stage the race in Austin from 2012 to 2022.

Formula 1 has also attempted to previously break into the US sports market by hosting an event at the Indianapolis Speedway from 2000-07.

Carey said the sport has to aim higher and target the “great cities’ of America, including New York, Miami and Los Angeles.

“We clearly will have a plan to develop America, to be in the right market,” Carey said.

Formula 1 wants a larger piece of the American pie.

“There is a big untapped audience in the US. I don’t want to criticise the efforts in the past, because I don’t know the efforts in the past. Formula 1 is a great premium brand and that means to me that you want to be at a location like Los Angeles, New York or Miami. Ideally in the great cities in the world.”

He said Liberty Media has no plans to slash budgets in a bid for a quick pay day and is instead looking at getting a return on its investment through long-term development and growth of the sport.

“It’s about how to build long-term value,” he said.

“So the focus will be investing and building over time. That is the mindset that we bring and hopefully it will enable us to bring Formula 1 to the next level. Formula 1 is a great business, a great franchise and we want to build on that and I see that there is opportunity too for stepping up by investing in all sorts of areas — some of the historic areas in making the racing great, making tracks more exciting than ever; investing in marketing the sport so that it connects with fans in the right way; investing in new platforms — digital platforms — that really are able to connect to the fans with the information that they really want, taking advantage of everything that the sport has to offer.”

It seems unclear if Chase Carey is Bernie Ecclestone’s boss or pupil.

He said Formula 1 is ideally positioned to attract increasingly larger audiences around the world because it already has a global reach.

Carey believes even isolated sports markets like the United States will in coming years be more receptive to sports that have a global audience.

“There is no question that one of the truly distinguishing features of Formula 1 is that it is a global sport,” he said.

“And the world is growing more and more global — people are global, companies are global and there aren’t many platforms that match that global demand. Yes, you have the World Cup and the Olympics, but they are only every four years.

“Formula 1 is unique in being a global sport recognised around the world — and one that happens every year for nine months! That is an incredible strength that Formula 1 has the opportunity to build on.”

Originally published as New boss of Formula 1 reveals plans for expansion into new American cities