F1 boss Carey plans to drop races with “unattractive” agreements, threatening historic venues
Formula 1 boss Chase Carey says he will drop races that have “unattractive” agreements with the championship, and replace them with deals negotiated by the new management.
The only new race confirmed on Carey’s watch is Vietnam, which is scheduled for 2020. However, he has regularly stated there’s extensive interest from potential hosts, and that the calendar could extend to up to 25 races in the future.
Meanwhile the futures of several classic events, including the British Grand Prix at Silverstone, remain in doubt once deals negotiated by Bernie Ecclestone run out. Speaking during a conference call for Liberty investors, Carey stressed the new owners are working more closely with race promoters to put on a good show, suggesting that in the past events were “stale”. “The promotion end of our business has been viewed as more mature than other revenue streams in F1,” he said. “This perception was fuelled by a lack of investment or freshness by the prior regime in our events.
“Quite simply our events became stale, which led promoters to focus on costs as opposed to growth.
“We believe there is still potential growth, significant growth, in the promotion segment, during the next few years. The growth will be driven by three factors.
“First, we expect to expand our calendar beyond our current 21-race schedule.
“The expansion will be modest, but we have been excited by the number, quality and diversity of new locations interested in hosting a race.
“Second, we expect to replace a few existing races where we inherited unattractive agreements, with new events or agreements, that are better for racing and provide more value.
“Third, there is significant longterm value in our higher-end hospitality experience.
“Major events today increasingly rely on those customers willing and able to pay for unique and tailored experiences, both in the corporate and retail end.”