This article was last updated on April 16, 2022
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Since Max Verstappen controversially pipped Lewis Hamilton to the drivers’ championship in Abu Dhabi it has been revealed that the global motorsport series’ revenue last year was up by 87 per cent to US$2.14 billion, while its cumulative broadcast audience climbed to 1.55 billion.
Now, the question is whether Formula One can capitalise on that success in 2022, a year that was originally scheduled to feature a record-breaking 23 races, including returns to Australia, Canada, Japan and Singapore, as well as a Grand Prix in Miami for the first time.
Even before the first race in Bahrain on 20th March, however, Formula One’s calendar has shrunk from 23 races to 22. In the wake of Russia’s invasion of Ukraine, the series has cancelled the 2022 Russian Grand Prix and terminated its contract with the event promoter, reportedly costing the championship US$53 million. At the time of writing, it remains unclear whether or not Formula One will replace the race in Russia, although series chief executive Stefano Domenicali has said that it will be “no problem at all� to fill the gap created in the schedule.
Formula One will have to replace the Russian Grand Prix from 2022 onwards
On the track, 2022 will mark the start of a new technical era for Formula One as part of an overhaul originally planned for last year. It is hoped that the regulation changes will bring about more exciting racing, greater competitive balance and improved financial sustainability in the sport, with this season’s cost cap also dropping from US$145 million to US$140 million per team.
Looking to sponsorship, eight out of ten teams will enter the 2022 season with either a cryptocurrency partnership or non-fungible token (NFT) deal. Branded in some quarters as the new tobacco sponsorship owing to widespread ethical concerns, deals with brands from the crypto sector have become increasingly prevalent in Formula One over the past 12 months.
Among the most high-profile partnerships is Red Bull Racing’s deal with Bybit, which is reportedly worth a whopping US$150 million. Even Formula One itself has struck a deal with Crypto.com, which is paying a reported US$100 million to be the series’ official sprint event partner and was also recently announced as the title sponsor of the Miami Grand Prix. However, the risks of partnering with crypto firms were highlighted by the collapse of McLaren Racing’s agreement with Bitci after less than a year.
On the broadcast front, this will be the first season of Formula One’s new media rights deal in the Netherlands with Viaplay, the streaming service operated by Nordic Entertainment (Nent) Group. The series will also soon be turning its attention to its next broadcast deal in the US, where audiences have been steadily increasing on ESPN. The Disney-owned network has suggested it is keen to renew the partnership beyond the 2022 season, but Netflix has hinted that it is considering a surprise bid for the rights on the back of the success of Drive to Survive, which returns for a fourth season this month.
Finally, Formula One has also continued to see the benefits of its efforts in esports. The championship reported that its esports series generated more than 23 million views across its various digital platforms during 2021, a 103 per cent year-on-year (YoY) increase from 2020.
With all the numbers trending in the right direction, BlackBook Motorsport provides its annual Formula One preview of all the commercial details you need to know heading into the new season
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