Motorsport is undergoing a significant transformation.
That was the overwhelming consensus across a series of panels at the 12th edition of the BlackBook Motorsport Forum, which saw over 400 attendees descend on the Mercure London Earls Court hotel.
Institutional capital is flowing into the space at an unprecedented rate, audiences are becoming younger and more diverse, and commercial models are evolving beyond traditional sponsorship.
At the same time, the rise of digital platforms and data is redefining how fans connect with teams, while the sport itself is expanding into a broader cultural and lifestyle proposition.
After listening in as the likes of Formula One, Cadillac, LVMH, McLaren and Lego appeared on stage, BlackBook Motorsport picks out four key takeaways that emerged and outlines what opportunities lie ahead.
1. Motorsport is an investable asset class
Lewis Hamilton once called it a billionaire boys’ club, but Formula One has been opening its doors to institutional capital, leading to minority investments from entities looking to cash in on the sport’s growth. That interest has also started to extend to wider motorsport, adding credibility to the theory that a rising tide lifts all boats.
Indeed, private equity firms and sovereign wealth funds are now actively reshaping the financial architecture of the sport. According to industry analyst Elis Jones, the former heads of sports at Goldman Sachs, this shift is being driven by a search for diversification.
“We have seen a demand and a need for diversification of capital,” he said. “People want to put that money to work in different places.”
Jones also said that Covid helped to demonstrate “the resilience of the industry”, further strengthening the appeal to investors, who are also being drawn by the scarcity value. With a limited number of teams and franchises available, valuations have surged in Formula One, and Jones believes MotoGP will see a similar trend soon.
“If you think that the media cash flows are the most solid, you want to get as close to those as possible,” Jones added.
MotoGP’s Tech3 outfit sold to a consortium led by former Haas Formula One boss Günther Steiner for around US$50 million earlier this year (Image credit: Getty Images)
2. Motorsport is reaching younger, more diverse and global audiences
Netflix’s Drive to Survive has been commended for bringing new audiences not just to Formula One, but motorsport as a whole. In doing so, it has helped accelerate a broader cultural shift that has positioned motorsport at the intersection of entertainment, fashion and technology.
This has led to significant fan growth. The US alone already has 52 million fans and the audience is growing “ten to 15 per cent year-on-year”, according to Cadillac’s Dinger, who noted “only 21 per cent” are aligned with a team, creating significant untapped commercial potential.
Meanwhile, James Bunbury, director of partnerships at the McLaren Formula One team, noted a “meteoric rise” in both the number of fans and “the demographics that are engaging with it”. Sponsors are equally aware of this shift, with Emily Jacobs, vice president for licensing at the Lego Group, pointing to “a rapid growth both globally [and] around the diversity of the fandom”.
That cultural relevance is also reshaping Formula One as a product. The race weekend itself has become a multidimensional experience, with Silverstone’s transformation of the British Grand Prix into a festival of entertainment a notable example.
As Jonny Haworth, director of commercial partnerships at Formula One put it, a fan’s day “won’t always be about watching racing, it could be about anything else – it could be food related, it could be music related”.
This is particularly appealing to brands. Deborah Wajsbrot, head of growth partnerships at Audi title partner Revolut, described Formula One as “the fastest-growing global sport”, with partners no longer being drawn just by reach, but by the opportunity to position themselves “as a lifestyle brand” meeting audiences “at their passion points”.
For Formula One specifically, that growth creates a new challenge. Bunbury highlighted that “about one per cent of fans will actually ever get to a Formula One race on any given year”, illustrating that the sport now has a vast global community it must continue to serve away from the racetrack.
The British Grand Prix has transformed into an entertainment festival in recent years, with musical acts like Raye (above), Sam Fender and Fatboy Slim performing during race weekends (Image credit: Getty Images)
3. Partnerships have evolved into integrated ecosystems
The traditional sponsorship model of slapping a logo on a car and expecting passive exposure to deliver return on investment is no longer fit for purpose. In truth, it hasn’t been for some time, but it appears the wider sponsorship ecosystem has caught up.
For rights holders, the goal of a partnership is now “to create an ecosystem that has mutual value for everyone”, according to Haworth.
This gives brands the opportunity to collaborate and create deeper, more personal experiences for fans, moving beyond traditional advertising.
Brands are responding accordingly. As Wajsbrot told attendees, brands now demand “integrated marketing campaigns that go beyond traditional advertising” which are global in reach but tailored to local markets.
Teams are also responding by expanding their commercial propositions to meet demand. Those able to offer visibility across multiple series can provide attractive options for brands seeking different routes to market.
McLaren, for example, compete in Formula One, IndyCar and the World Endurance Championship. Cadillac, through its TWG ownership, offers similar breadth with the addition of Formula E, and Dinger acknowledged that ecosystem “gives more opportunities for our brands and partners to play” across the portfolio.
The TWG Motorsports portfolio includes the World Endurance Championship, Formula One, Formula E, and IndyCar (clockwise from top-left), offering both reach and flexibility for partners (Image credit: Getty Images, Formula E)
4. Teams and rights holders are becoming media and data businesses
The adjustment to younger, more diverse audiences and the demand for deeper brand integration has forced a fundamental shift in how teams and series operate. Increasingly, they are viewing themselves as storytellers rather than just sports organisations.
Teams are investing heavily in owned platforms. From digital memberships to immersive content offerings, McLaren’s Bunbury said the goal is to create “an opportunity for people to become closer to the team”.
While Formula One teams are face increasing restrictions on what they can post, other motorsport series are capitalising on greater accessibility.
Stephen Blackmore, director of Triple Eight – known as Red Bull Ampol Racing in the Supercars championship for sponsorship reasons – said the team has invested significant time in short-form content, introducing fans “to other parts of our team, not just our drivers but our engineers”.
Data sits alongside content as a growing priority. To that end, Blackmore highlighted that engagement strategies are increasingly “data driven” and focused on finding the fan and understanding what they want – enabling more targeted and meaningful interactions.
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