Former Ferrari boss Stefano Domenicali, currently the chief executive officer of Formula 1, is confident the sport is in a good position to resist the effects of a recession in Britain and Europe that economists have warned about.
The series’ commercial rights holder, Liberty Media, is located in the United Kindom, just as most of its teams, while the rest, including Scuderia Ferrari, have their bases in other European countries. Nine of the 24 Grands Prix on the 2023 Formula 1 calendar are scheduled to take place in Europe.
The Bank of England warned Thursday that the U.K. is facing its longest recession since records began, as the economic downturn expected to last well into 2024. The central bank described the outlook for Britain’s economy as “very challenging,” noting that unemployment would likely double to 6.5% during the country’s two-year slump.
In a discussion with Formula 1’s parent company Liberty Media a few days ago, Stefano Domenicali confirmed that the sport is keeping an eye on developments but feels it can weather the challenging times ahead.
“First of all, being a world championship, we can spread around the world the risk of having this kind of situation to manage. On the other hand, the fact that we have long-term agreements will reduce the exposure to this risk. What I can say and share with you is that we already see an incredible number of preregistration with regards to the ticketing of next year. So this is a good sign.” – the former Ferrari boss explained.
Show your support for Scuderia Ferrari with official merchandise collection! Click here to enter the F1 online Store and shop securely! And also get your F1 tickets for every race with VIP hospitality and unparalleled insider access. Click here for the best offers to support Charles and Carlos from the track!
Stefano Domenicali admitted that “in Europe, where I’m living, it is clear that this recession is taking place. But I think that the way that we are structured, the way that we have done the deals will protect us and will enable us to move forward in this direction. Therefore I would say this kind of situation lets us think that we should be optimistic in this context that, of course, we monitor. But this is what we see today.” – he pointed out.
One key positive aspect for Formula 1 is the fact that the sport has seen continued growth in audiences attending its events throughout the current championship, as the F1 chief executive officer feels the series will be able to generate more earnings in the following seasons by capitalizing on its worldwide growing popularity:
“The attendance increase is just magnificent in terms of what Formula 1 is bringing mainly to new audiences. And that is true that the business model we are having with certain promoters is more related to the fact that there is a fee that they have to pay, there is the high-end Paddock Club that is on our side. And there’s – not a challenge – but the big opportunity to move forward is how we can maximise the revenue and monetise the revenue that we can take from the fact that Formula 1 has become more and more attractive. That’s really what we’re going to do in the future. We have a different way to do it, and I’m sure that we’re going to capitalise this growth in the best way that we can in the next couple of years.” – Formula 1 chief executive officer Stefano Domenicali concluded.
Leave a Reply