Formula One is undoubtedly one of the biggest motorsports series in the world. A report by the series boasted that the sport had a global TV audience over 1.5 billion people in 2021.
According to figures released by ESPN, the U.S. viewership of Formula 1 races across its networks averaged 1.21 million viewers per race in 2022, up 28% from 2021 and the first in U.S. television history to average 1 million or more viewers per race.
Related: Porsche unveiled a million-dollar car you can’t drive on the streets
With Formula 1 gluing Americans to their screens during races, or with the Netflix reality series Drive to Survive, the sport is keen to take advantage of its new audience. Though the 2023 Formula 1 season has three races taking place in the United States; the most for any one country — there is one place in the sport where Americans are not represented.
Of the ten teams currently competing in this year’s Formula 1 World Championship, three teams are of British origin, two of Italian origin and one each of Swiss, French, German, Austrian and American origin. The lone American team is the North Carolina-headquartered Haas F1 team, which is related to the Stewart-Haas team that competes in NASCAR; however, they will not be the only ones waving the Stars and Stripes on the grid for long.
Another American (might) join the race
View the original article to see embedded media.
The Fédération Internationale de l'Automobile (FIA); Formula 1’s governing body announced in a statement that it is backing a bid by Andretti Formula Racing to enter a team as part of the series, subject to approval by Formula One Management, its commercial rights holder.
This development comes after the FIA started a formal application process earlier this year, which sought to identify new teams looking to enter cars in the series starting in 2025-2027. After months of deliberation that involved two other entities getting their applications rejected, FIA president Mohammed Ben Suyalem had much to say about Andretti’s application.
“Andretti Formula Racing LLC was the only entity which fulfills the selection criteria that was set in all material respects,” said Ben Suyalem. “I congratulate Michael Andretti and his team on a thorough submission. I also want to thank all prospective teams for their interest and participation.”
More Technology:
- The company behind ChatGPT is now facing a massive lawsuit
- Prominent EV company says latest deal will be the first of many
- Apple makes a big new move with Elon Musk's Twitter
Andretti Global, which submitted the bid to the FIA under Andretti Formula Racing, announced in January that it intends to compete in Formula 1 in partnership with General Motors' (GM) -) Cadillac brand. Renault (RNSDF) -) -owned Alpine has also stated that it will supply the Andretti-Cadillac team with engines if it wins approval from Formula One Management.
Barriers to entry
Though the FIA have approved Andretti-Cadillac’s application, there are still more bureaucratic hoops to jump before they can go racing; notably, the team awaits approval from Formula One Management.
Some of the teams on the Formula One grid have not been very receptive of Andretti-Cadillac’s attempt to join the series as its 11th team, as they are wary that expanding the grid may dilute their already fat revenues.
In 2021, Liberty Media, which owns the commercial rights of Formula One through Formula One Management, have imposed a whopping $200 million entry fee into any entity seeking to enter Formula One, which would be split amongst the existing ten teams as compensation. Other teams have expressed that $500 million is a more appropriate number, as they feel that the existing fee is not enough.
In an interview to Forbes, former Formula One driver and Andretti Global owner Michael Andretti has expressed that the pushback his team is experiencing is “all about money.”
“It’s all about greed and looking at themselves and not looking at what is best for the overall growth of the series,” Andretti told Forbes.
In the same interview, Andretti said that he has the support of Zak Brown, the CEO of McLaren Racing, which operates a principal team on the Formula One grid.
FIA president Mohammed Ben Suyalem has expressed support for Andretti-Cadillac’s bid in the past.
“It is surprising that there has been some adverse reaction to the Cadillac and Andretti Global news," Ben Suyalem wrote in a January tweet. "We should be encouraging prospective entries from global manufacturers like GM and thoroughbred racers like Andretti and others."
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
