MIAMI GARDENS, Fla. — The Miami Grand Prix was the first major symbol of Formula 1’s expansion in the United States when it joined the calendar in 2022.
Now in its third year, the event has ironed out some of the early kinks to establish itself as one of the most important races on the calendar, serving as the first of three American rounds this season before Austin in October and the Las Vegas Grand in november. Price.
F1 has always had a reputation for spending a lot of money and having a big brand image. But as F1 teams attempt to capitalize on growing American interest, particularly from new sponsors and partners, Miami is an important start to the season.
As Red Bull Racing marketing director Oliver Hughes said: “This is where people want to come and do business. »
The increase in American spending
Growing fan interest in F1, fueled by the success of ‘Drive to Survive’, has transformed every aspect of the sport under Liberty Media. This includes making it much more attractive to brands looking for a wider reach than F1 could have previously offered.
The F1 boom has opened the door for more American companies to join the sport. According to Williams, there were 23 new brand partners among F1’s 10 teams at the start of this season, 48% of which were headquartered in the United States. Two-thirds of Williams’ key partners are based in the United States, and brands such as Duracell, Michelob Ultra and Kraken have started working with the team in recent years.
The growing importance of the American market also prompted Williams to establish a lasting foothold in the market by opening a sales office in New York, which is also the base of its owner, the investment company Dorilton Capital.
“There are some organizations where F1 maybe didn’t make sense, because it wasn’t really global because it wasn’t big enough in the United States,” James Bower said. , commercial director of Williams.. “Now it does, it makes F1 a more relevant proposition for them.” Bower cites the partnership with THG through its MyProtein brand, announced last year in Austin, as an example of a company that had “big ambitions in the United States, and the growth of F1 in the United States led them to come with us to exploit the United States more.
It’s a very different scenario to F1 before the Liberty Media takeover, when there was only one American race on the calendar and fans couldn’t access the sport in the same way.
“You were trying to convince anyone in the United States that F1 was something they should think about,” Hughes said. “A few years later, with the Drive to Survive factor, and suddenly all the American tech brands see that this is the perfect place to demonstrate our technology in action. »
Make the most of Miami
The influx of American brands has made Miami one of the busiest races of the year, particularly for the announcement of new partnerships.
Ferrari chose Miami to launch its new title sponsorship with HP, which included blue and white colors linked to a historic nod for the car’s livery this weekend. McLaren announced a new partnership with eBay, as did Williams with Keeper, a cybersecurity company.
Hughes’ own travel schedule reflects Miami’s added importance. He usually arrives at a race on a Thursday, but arrived in Miami on Tuesday. The team’s primary sponsor, Oracle, is based in the United States, and the team counts many other American brands among its sponsors, including Hard Rock and Visa. Its sister team, RB, has signed deals with Visa and Cash App as main partners as part of a rebrand for this year.
“It’s definitely a very business-friendly place,” Hughes said of Miami, noting Florida’s tax advantages for businesses and CEOs. “You just look at sports in general, the eyes of the United States, the direction sports is going, all the big deals right now are big American tech companies, whether it’s us with Oracle or another big American tech giant. technology. company in HP coming to Ferrari. McLaren has acquired a number of new technology companies in the United States. This certainly has a huge positive impact on the sport.
RB unveiled its Miami livery at an event Wednesday at a car wash near the Wynwood arts district. This unusual location was part of a push to try to connect with more Gen Z fans, especially given Cash App’s resonance among that demographic — the idea being that the livery looked to be applied to the car.
“We sit down, how can we communicate with this generation? » said Hughes. “Cash App brings a very different approach to everything. Custom liveries are nothing new, but when they say we’re going to create a livery, how do we unveil it, at some point? Car Wash? I don’t think we’ve ever seen an F1 car in a car wash before!
What F1 brings to Miami
Miami has not only given a lot to the F1 ecosystem since 2022; The F1 ecosystem has brought a lot to Miami.
According to an independent economic report commissioned by the Miami Grand Prix last year, the local economy benefited $449 million from the 2023 race, an increase of 29% compared to the first edition of the event. . Visitor spending in the Greater Miami area exceeded $195 million, up from $150 million in 2022, and provided employment opportunities reaching $150 million.
“We’ve generated almost $800 million in economic impact in the first two years, and we’re certainly proud of that,” said Tyler Epp, president of the Miami Grand Prix. “Is there an opportunity to continue to develop this? Of course, and we will continue to do so.
One area Miami is focusing on for its third year is expanding its fan base outside of South Florida, trying to attract a more international audience who might look to incorporate the race into a visit to Miami and help increase these expenses. “There’s nothing wrong with having that base,” Epp said. “We want to make sure that we are very welcoming to people who want to use Miami as a destination, and add the Grand Prix as another experience when they want to come.”
Epp said being part of the Miami Dolphins portfolio and hosting the race at Hard Rock Stadium, which remains busy outside of the soccer season with tennis, concerts and the final of this year’s Copa America tournament, gave a wealth of knowledge to promoters. exploit.
But he also felt the race continued to mature and learn what its fans wanted, especially after ironing out some of the initial issues from the first year. Drivers were unhappy with the track surface and layout, while off the track the hospitality provision was well below standard. By the second year, a new permanent garage had been built, while the paddock had been moved inside the stadium.
“In year three it starts to become a little more important, let’s explore who we are, what we do, and what we stand for, and engage in that a little bit,” Epp said. “That means listening to customers, listening to what’s meaningful to them and giving them a reason to come back.”
The growth outlook
F1 is now well established in the United States with races in Miami, Austin and Las Vegas. But amid a period of unprecedented dominance from Max Verstappen and Red Bull, concerns have been raised about how sustainable that growth will be if fans become disappointed with the on-track product.
F1 marketers remain optimistic that they can continue to grow in the United States, even in light of a 9.1% audience decline last year. “I don’t see any real slowdown in American interest at the moment,” Bower said. “Obviously there has been a narrative building around things like viewing figures, but we have a little paradox at the moment where Red Bull is doing an incredible job and is very competitive.
“But it’s also the closest championship in probably 10 years. I really think the championship continues to evolve and be very exciting and compelling, globally but particularly in the United States.”
Hughes said F1 getting “three bites of the cherry” every year in the United States was only good news for the sport, especially given the races’ placement on the calendar and their different identities . He praised Miami as “brilliant” and said Austin had “matured a lot” and felt the second edition of the Las Vegas race could be a new commercial milestone.
“I don’t think we’ve cracked Vegas yet,” Hughes said. “I think when we do it, it will be a different level.”
(Ferrari team member main photo: Chris Graythen/Getty Images)