Formula 1 CEO Chase Carey hasn’t ruled out making contracts similar to that made for the Miami Grand Prix with other races in the future.
Though the street race in Florida has been pushed back until 2020 in the face of local opposition, the potential deal between Liberty Media and promoter Stephen Ross is still creating a lot of buzz with his counterparts at other Grands Prix.
The model being considered is a break away from the typical model of a straight fee to the commercial rights holder with both parties taking on risk by looking to optimise revenue from other sources, whether it be corporate or sponsorship.
Unsurprisingly, that has struck a chord with races that have been struggling financially for years, such as the British and German Grand Prix’s, who see the Miami model as a possible alternative the multi-million sums they currently have to pay.
“Realistically every race is unique,” said Carey in a conference call with investors after revealing another disappointing quarter of financial results.
“I think each one we’d look at in the specific terms. I think people don’t realise that frequently these events have a lot more moving parts than just a fee, there are hospitality components, sponsorship components, other components around it.
“But you look at each on their merits. What are the direct economic benefits and certainties? We’re not afraid of risk, if we believe there’s an upside to the risk. We obviously can afford that.”
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Carey has looked to forge a closer relationship with race promoters including the first-ever collective meeting to share ideas on how to improve the experience each race provides, however, he insists the idea of sharing the costs is not going to become the norm.
“We’re not going to turn the model upside down, but if the returns justify the risks, I think we’d look at it,” he continued.
“We’d look at that conservatively, so we’d want to be comfortable, and again I think we’re not looking to transform our model, but we’d look at each one based on the unique characteristics of that event.”
Looking forward, the Liberty chief remains very upbeat about the future of the F1 calendar, teasing a few newcomers.
“We’re already turning our energies to the 2020 calendar, and we’re particularly excited about a number of opportunities to add new events that we believe will really capture fans’ imagination and be widely supported.
“In fact, we are actively discussing opportunities on four continents. A potential race in Miami is one of those.”
