When tools were finally downed at Donington Park a year ago, the noise could be heard throughout the motor racing world. It signalled defeat in a vain attempt to transform the famous track in the heart of England into a hi-tech circuit ready to stage the British Formula One grand prix for the following 17 years.
The image of the old course reduced to a building site was a reminder that the glory associated with staging glamorous international races can often cloud financial judgements. But the Donington experiment does not look like it will be repeated. Faced with the economic downturn, track developers are spreading their wings far and wide in the search for greater revenue streams and friendlier financial fields to pitch their fork.
The result has been an array of new circuits predominantly in Asia, where the credit crunch has carried least bite, while existing tracks have been forced into makeovers for a more flexible 21st century look. Jonathan Ashman, president of the World Touring Car Commission at motorsport’s governing body the FIA (Fédération Internationale de l’Automobile), says the stakes for track developers without the benefit of public investment have never been higher.
“You only have to look around the world to see how many Formula One tracks need subsidies as part of their business plan,” he told SportBusiness International. “At Donington it was very difficult to see how on Earth the sums would add up. If you’re trying to do it as a business and not as a national prestige project, it’s a very difficult job.”
Zak Brown, founder and CEO of Just Marketing International (JMI), lists three major changes to course structure in recent years. “Safety’s been the number one innovation,” he says. “Secondly, circuits have been built with better viewing grandstands and elevated track. Thirdly, tracks are designed with commercial flair so the track signage and exposure you get for corporate sponsors, as in Singapore, is spectacular compared to some of the older circuits.”
Brown uses the example of how JMI’s new signing Swiss bank UBS has been able to shine through. “[UBS] are branding start lights and curbs which has never been done before,” he says, predicting future commercial opportunities in onboard cameras and mobile phones dialling into a specific driver. “We say, there are 15 trackside sponsors, how can you be unique and different and not become clutter?”
Clive Bowen, managing director of Apex Circuit Design, believes the biggest change has been in the ‘mindset’, with track owners and visitors now viewing tracks as ‘entertainment or business destinations’.
“Theme parks and other sporting destinations have applied this theory for years,” he says. “It is something of a surprise to me that it’s so late in the day that this kind of philosophy is being applied to a motorsport venue. You need also to remember that, typically, over 90 per cent of a track’s revenue comes from non-motorsport circuit action.”
The Nurburgring in Germany, which houses the legendary Nordschleife as well as the grand prix track, was redeveloped last year and now enjoys 100 racing events and 200 other events, making it among the most used racetracks around. As well as Formula One, the World Superbike Championship and the Truck Grand Prix, there is also a spa, a range of services for corporate customers, the Rock at the Ring music festival and a theme park featuring the world’s fastest rollercoaster.
For a full rights focus, please see the latest issue of SportBusiness International out November 1.
