I am a big Formula One fan. Have been for quite a few years and it looks like it well be moving to a pay per view structure here in the UK. After having been on free to air for so long this is a shame. Fans such as my self well no longer be able to watch their favourite team or driver competing unless they shell out an extortionate sum of money to Sky for the privilege.
Sure Liberty Media who now own Formula One, the FIA and the teams well make a lot of money but that well be at the cost of viewers. The reduced viewing figures well make it less attractive to advertisers and so they well look else where.
This weekend is the British Grand Prix. This may well be one of the last at Silverstone as they are activating the break clause in their contract. The contract expires in 2019. This is the historic home of Formula One here in the UK having hosted the first race way back in 1950. It has hosted Formula One every year since 1987 and is one of the longest running Formula One circuits in the world.
The cost of attending a Grand Prix at Silverstone has got the point now that it has become untenable. A couple of years back we looked at going as it was a big number year birthday wise for me. For two people just to get into the track with out seating was in excess of three hundred pounds. That did not include food, drink or travel to and from the circuit. Add those costs in and you are looking at well over four hundred pounds. That cost was justified by Silverstone as down to the fee they had to pay Formula One to host the Grand Prix. I do not know of many other sports, if any, that charge the venue a fee to allow them to host an event. If you tried to have a party for example at a local venue you would not say to them you pay us money and we well come to you. That just does not happen. The payment structure is wrong. Formula One management should hire the circuit and then split the profit from ticket sales and merchandising with the course. The course provides a venue and the staff with every one making money. I understand that Silverstone are loosing between two and three million pounds every time they host the Grand Prix. Formula One are driving them to bankruptcy as they are for many other circuits around the world. Yet they still have countries queuing up to host one.
Formula One is in danger of becoming a marginalised sport consigned to pay view and the history books. Killed off by its insatiable greed for money. With tracks in far flung countries with little to no motor sport heritage and little to no fan base. Paid for by governments trying to show that they have what it takes to make it on the world stage. The event running there for a couple of years only for it to disappear from the calendar.
I shall watch the British Grand Prix this weekend. Saddened by the knowledge that this may well be one of the last that I see. I refuse to pay Sky for the privilege of watching a sport that I have been effectively priced out off attending all so a chosen few can make more money than they know what to do with.
I understand that Formula One is a business and as such exists to make money. But at what cost? If you price out of the market your own fan base. Then switch to a pay for view system reducing that fan base even further. The advertisers well see it as less of a draw as the potential market is shrinking. It is then only a matter of time before they look else where to spend their advertising budgets. Some thing needs to be done as that shrinking income and fan base well affect the teams. They well find it harder to attract the sponsorship that they need. It is then a downward spiral. Less sponsorship and more teams well go under. Less teams less excitement as the same big teams win week in week out. The fan base shrinks further leading to less advertising and so it goes on around and around.
What should Formula One do? How can they sort these issues out? I have no idea but then I am not in a position to do any thing about any way. What I do know is that in its present form it is on a downward spiral. A downward spiral created purely by greed. Formula One should how ever be held up as an example of what not to do. Of how to kill the goose that lays the golden eggs. As a fan I find it saddening that a sport I have enjoyed for many many years is now on the brink of becoming a minority sport. A sport purely for the elites to enjoy at their purpose built circuits in what ever country is able to stump up the money. Watched by a crowd who are not interested in the slightest with the spectacle or the racing in a country that has no motor sport heritage. Its only claim to Formula One being that it has a seemingly bottomless pockets of cash.
It is sad news that Silverstone is possibly destined to join the long list of old school circuits that were once a staple of Formula One. There are very few who have held more races. Those being Monaco and Monza. Both of which are still active.
MaHathawayBlog 