Domenicali: Formula 1's exposure to global recession 'reduced'
F1 boss Stefano Domenicali says the sport isn't immune against an economic downturn, but long-term contracts as well...
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F1 boss Stefano Domenicali says the sport isn't immune against an economic downturn, but long-term contracts as well as Grand Prix racing's international presence protect it against the risks of a global recession.
With inflation still trending higher and energy prices showing no sign of significantly declining, warning signs continue to flash across world markets.
Therefore, the question of a global recession is no longer if, but when.
Addressing the impact of an economic slowdown on Formula 1, Domenicali acknowledged that the sport is closely monitoring the current downturn. But the Italian also struck a reassuring tone.
"First of all, being a world championship, we can spread around the world the risk of having this kind of situation to manage," Domenicali told Wall Street analysts last week during The Formula One Group's third quarter conference call.
"On the other hand, the fact that we have long-term agreements will reduce the exposure to this risk.
"What I can say and share with you is that we already see an incredible number of preregistration with regards to the ticketing of next year. So this is a good sign.
"In Europe, where I’m living, it is clear that this recession is taking place. But I think that the way that we are structured, the way that we have done the deals will protect us and will enable us to move forward in this direction.
"Therefore, I would say this kind of situation lets us think that we should be optimistic in this context that, of course, we monitor. But this is what we see today."
Formula 1's most recent numbers reflected the sport's continued growth, spurred on by its rising popularity which teams and promoters continue to embrace.
"The attendance increase is just magnificent in terms of what Formula 1 is bringing mainly to new audiences," he said.
"And that is true that the business model we are having with certain promoters is more related to the fact that there is a fee that they have to pay, there is the high-end Paddock Club that is on our side.
"And there’s – not a challenge – but the big opportunity to move forward is how we can maximise the revenue and monetise the revenue that we can take from the fact that Formula 1 has become more and more attractive.
"That’s really what we’re going to do in the future.
"We have a different way to do it, and I’m sure that we’re going to capitalise this growth in the best way that we can in the next couple of years."
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