Racing is a global sport and F1 has a huge influence on race lovers, but the costs of such an event are not easy to justify. There was a time when the phrase, win on Sunday, sell on Monday had a lot of significance. All the racing events were huge and supported by big names.
The whole industry was influenced by that phrase, and it convinced the industry to spend a huge amount of money to support sporting excellence. If you take a look back at the 1960s, you will see that it’s true, even though it seems a little naive today.
But, today as the world has evolved, the importance of the phrase has evolved too. Things have changed and today the motorsport budgets are handled by the marketers. It’s a part of their advertising budgets, which is used to build a good relationship with the audience and create brand awareness.
There are other things that they do too, that might seem a little odd, but then they spend a lot of money to produce expert analyses that support those things. There was once a document that was produced to justify the $30 million Infinity was spending for putting a sticker on the vehicles every year.
While we all know that F1 is very important for Ferrari if we go down the chain we would realize that the motorsport becomes expendable. Today, even the most important brand in the F1, Mercedes, is having a hard time justifying the involvement as being cost-neutral. There is no doubt that F1 is helping the brands to grow and is providing exposure that will help them reach out to new customers. It’s playing a big role in attracting customers towards its brands who would have purchased an Audi or BMW.
But, still, there could be a solution. The minds behind the industry need to stop thinking about the latest Powertrain trends and just focus on the current ones. Synthetic fuel, an environment-friendly version of diesel or petrol, might be very expensive today, but if extra hard work is put, it could become cost-effective.