Tire Business’ Post

https://lnkd.in/dd6qNsDB This is a fascinating piece from Samuel Agini of the Financial Times regarding Formula E’s ambitions to sell the twelve-team franchise in the near future.   Building on a recent interview with Formula E CEO Jeff Dodds, the article talks to the aspirations of the championship to attract new high-end car makers to the series with the Championship making the twelve-team franchise available for in the region of €20m-€30M.   The article goes on to draw comparisons with recent Formula One team valuations, which today stand upwards of €1BN. Valuations which have skyrocketed in part due to the successful implementation of an operational budget cap of $140M per season.   Adding my own perspective to the article, whilst Formula E will determine the ticket size of the twelve spot on the grid. The €20-€30M investment buys you just that, a spot on the grid. You then have to build a team, establish customer power unit relationships, if that is your chosen route, or develop your own powertrain. Whilst the team and manufacturer operating budget represents 10% of that which a Formula One team, this is no small undertaking. “high-end” carmakers referenced in the piece would do well to partner with existing teams on the Formula E grid rather than going it alone.   Further to this point, Investment firms exploring motorsports involvement would benefit from including  Formula E in their analysis of the sports property landscape. While Formula One can today boast Billion dollar team valuations, little more than six years ago, teams would change hands for a fraction of this value. This rate of growth, whilst impressive, is unlikely to be sustained. Formula One audiences have plateaued, it should not be unexpected that valuation, both at a team and championship level, will do the same.   Formula E, by contrast, has seen an incredible start to the season, with audiences up 40%. While the base valuation is lower, the scope for growth is far greater. #FormulaE #Formula1 #Valuation #SportsInvestment #SportsBusiness

🔶 Automotive Racing Tires market Size and Industry Growth 🔶 The Automotive Racing Tires Market is a dynamic and highly specialized segment within the broader automotive industry. Racing tires are not mere rubber components; they represent the critical interface between high-performance racing vehicles and the track. The market for these specialized tires is a testament to the relentless pursuit of speed, performance, and safety in the world of motorsports. Key Global Automotive Racing Tires Industry Players Pirelli Continental Hankook Tire Bridgestone Americas The Goodyear Tire & Rubber Company Hoosier Racing Tire Corp. Michelin Cooper Tire & Rubber Company Europe Ltd. Kumho Tire Maxxis Tires Philippines Mickey Thompson Toyo Tires Nitto Tire U.S.A., Inc. KENDA RUBBER INDUSTRIAL COMPANY LIMITED Co. Ltd. Vishay Intertechnology, Inc. #market #marketresearch #metastat #metastatinsights #Industryanalysis #industry #keyplayers #researchreport #marketreport Read More: https://bit.ly/47C9p7D

UPDATE 3:35pm ET: Front Row Motorsports just officially announced that they have purchased one of the SHR charters. So, officially, that is one of the four now gone. ORIGINAL POST: I've had several people reach out to me for my opinion, so here is my two cents -- By now, the world knows that Stewart-Haas Racing is closing down at the end of this season. My heart is broken for all of the SHR employees. This is always the sad part of the racing family. The big question now is what will happen with the four NASCAR Cup Series charters owned by SHR and how much are they really worth. The rumor mill says the charters are worth about $40 million each. However, there is no charter deal in place with the teams and NASCAR and they seem very far apart. There is no TV deal with the teams and NASCAR and they seem very far apart. My thoughts are this for what it is worth and I could be completely off my rocker -- If SHR leases the charters as other charter owners have done instead of selling them right now until the new charter and TV deal is negotiated and finalized between the teams and NASCAR, the possible advantages: 1. Leasing would provide an opportunity for an entity such as JR Motorsports, a new team owner, or a new manufacturer (Honda or Dodge) to come in to the Cup Series at a more manageable cost to "test the waters" for a sustainable business model moving forward. Additionally, this would provide the opportunity for the teams to build corporate partnerships (sponsorships) based on a "known" instead of an "unknown" of whether the team will have a charter and starting position for a specific term. 2. Leasing would provide the opportunity for SHR to potentially monetize the charters even more with a "lease with option to buy" scenario based on how the charter and TV deal play out -- could make them worth more than $40M. Right now, it is an "unknown" scenario which could make the charters worth less in the eyes of an investor. 3. Potentially, NASCAR could be in violation of their own contract with the networks for at least a 36-car field if the charters are not sold and in place on time. This makes the "lease with option to buy" scenario an advantage as it would not violate the contract terms for a 36-car field. Your thoughts? #racing #motorsports

Is Formula One considering a Chicago Grand Prix?: Filed under: Motorsports Continue reading Is Formula One considering a Chicago Grand Prix? Is Formula One considering a Chicago Grand Prix? originally appeared on Autoblog on Tue, 30 Jan 2024 12:38:00 EST. Please see our terms for use of feeds. Permalink |  Email this |  Comments #car #cars #awesome

Did You Know About the 107% Rule in F1? Formula 1 racing is filled with thrilling moments, but behind the excitement, there are strict rules that ensure fairness and safety. One such rule is the 107% rule, a lesser-known yet fascinating regulation. What is the 107% Rule? The 107% rule ensures that all cars on the grid are fast enough to compete safely. Here's how it works: - Qualifying Benchmark: During the qualifying session, any driver whose best lap time exceeds 107% of the fastest time set in that session will not be allowed to start the race. - Example: If the fastest lap time in qualifying is 1 minute and 40 seconds (100 seconds), any driver with a lap time above 1 minute and 47 seconds (107 seconds) will be disqualified from starting the race. Why Does it Matter? - Safety: Slow cars can be dangerous on the track, both for themselves and others. The rule ensures that only competitive cars are racing. - Fair Competition: It keeps the race exciting and fair by making sure all cars are within a competitive range. Exceptions to the Rule Sometimes, there are exceptions: - Special Circumstances: If a driver faces unexpected issues like bad weather or technical problems during qualifying, race stewards might still allow them to race. - Past Performance: If a driver has shown competitive times in practice sessions, they might get a pass even if they miss the 107% mark in qualifying. Why You Should Care The 107% rule isn't just a quirky fact about racing; it holds a powerful lesson for business. Just like F1 teams ensure their cars and drivers are top-notch to compete, you should aim to build a team of A-players in your business. - High Standards: By setting a high bar, like the 107% rule, you ensure that everyone on your team is performing at their best. This drives the entire team forward, fostering a culture of excellence. - Safety and Efficiency: Having top performers means fewer mistakes and smoother operations, much like having only the fastest cars ensures a safer race. - Competitive Edge: In business, just like in racing, staying ahead of the competition requires having the best team. A-players bring innovation, dedication, and the drive to win. So, as you watch the next Grand Prix, remember the 107% rule and think about how you can apply its principles to build a team that’s ready to take the lead in your industry.

Williams Racing have reduced the number of partners, but the partnership network is now solid. In 2022 the Williams Racing Formula 1 team had 27 partners. Some of them were linked to the Latifi family and some of the partners were Dorilton portfolio companies, such as Versa Integrity Group, Honibe and MEI Rigging & Crating. Bang & Olufsen left after the 2022 season to partner with Scuderia Ferrari and French Thales, known for developing defence systems used in Ukraine, left Formula 1. Those Dorilton "portfolio partners" are now gone, even though Dorilton have kept the Dorilton Ventures brand on the partnership network. The number of partners have been reduced to 17, so 10 less than 2022. Gulf, moving from McLaren, Anheuser-Busch brand Michelob Ultra, US-crypto company Kraken and financial giant Stephens are some of the strong partners on the 2024 Williams network. But I guess two of the partners the Williams team are especially proud of are Japanese Komatsu and German Puma. Getting Komatsu back to F1 and Williams was probably one of the greatest achievements in a while for the Williams partnership team. Overall, I would describe the current Williams Racing partnership network as solid and "healthy" and a network looking stronger and stronger. Well done 🙌 💪

Formula 1 achieves substantial year-on-year growth for third quarter, earns $887m. Formula 1, the pinnacle of motor racing, has revved up an impressive year-on-year growth of 24 percent during the third quarter ending on September 30, 2023. The financial results, disclosed by Liberty Media, the series' parent company, reveal a substantial boost in income, with F1's... Read more: https://hubs.li/Q02861NC0 #Formula1 #SportsBusiness #FinancialResults #YearOnYearGrowth

FIA Insights - Formula 1 Austrian GP Track Limits Updates We have made significant changes at the Red Bull Ring to address track limits at Turns 9 and 10. The installation of a 2.5m gravel strip behind the kerbs at these turns is a key development, acting as a natural deterrent to prevent drivers from gaining an unfair advantage by running wide. To further improve clarity and enforcement, we've introduced a new blue line behind the kerbs. This helps officials to easily identify when a driver exceeds the track limits, ensuring consistent and transparent decision-making during the race. These updates reflect our commitment to maintaining the integrity of the sport and responding to feedback from drivers and teams. We believe these changes will lead to more exciting and fair racing at the Red Bull Ring. Learn more about these changes: https://lnkd.in/ewWa73Jt

Sergio Perez has much to celebrate: a new Red Bull Racing contract and a 20-year journey with Telmex/América Móvil. Perez has likely heard the term "pay driver" many times, but the Telmex-Sergio Perez partnership stands as one of the most longstanding and prosperous in Formula 1 history. The Mexican Telmex/America Movil group of companies has supported Sergio "Checo" Perez, 34, for two decades. It all began when Carlos Slim Domit, son of billionaire Mexican businessman Carlos Slim Helú, saw a 14-year-old Checo Perez racing in karting. Carlos Slim Helú acquired Telmex from the Mexican government in 1990, the year Checo Perez was born. A consortium led by Slim won the auction for 20.4% of Telmex for $1,734 million, leading to the formation of Grupo Carso. Red Bull Racing’s partner, América Móvil, was established in 2000 as an independent company from Telmex. In 2010, América Móvil and Telmex merged, and the Slim family now controls 53.2% of América Móvil. Telcel, a wireless telecommunications company owned by América Móvil and founded in 1984, is part of the Red Bull Racing Partnership network. Another América Móvil brand in the network is Claro, a telecommunications operator spanning over 18 countries. In Central and Eastern Europe, América Móvil operates under the A1 brand. We have also seen the Infinitum brand, an internet operator, on the Red Bull Racing car. This relationship exemplifies a great partnership. Sergio a "pay driver"? I don't think so, not at Red Bull Racing 😀 📷 Photo: Red Bull Racing