00:00The war in Iran has, of course, disrupted so much of the global economy, and that includes sports.
00:05Formula One races in Bahrain and Saudi Arabia have been postponed,
00:09but one of the world's most glamorous and lucrative sports franchises resumes this weekend in Miami.
00:15We're now Formula One Chief Executive and President Stefano Domenicali is here.
00:19Mr. Domenicali, thank you so much for joining us.
00:21Look, I'm an Italian, I've always been an F1 fan, but it's incredible the resurgence of F1,
00:26thanks to Netflix shows and all of the brouhaha around it.
00:30How do you continue keeping on that momentum, especially when now Americans are really into your sport?
00:36Well, Francine, I think that the duty of a company or a business that is always under pressure
00:42or thinking that the performance is part of our life is keep growing
00:46and making sure that all the opportunities that we have in front can be taken.
00:50Today, of course, you're right.
00:51We live in a great moment for our sport, and despite the economical and the crisis that we are living,
00:57we have the duty to keep, you know, our fans, our stakeholders still connected to our sport.
01:06And I think that there is a lot of things that we can do even better and stronger, but that's
01:10where we are.
01:11So where do you see the next opportunity for the franchise?
01:13The next opportunity for the franchise is to exploit the new market that has just started.
01:17For example, U.S. is one of them, which is the beginning of something that could be bigger and bigger.
01:22We need to get into the culture of the American fans, because the sport is culture.
01:26It's not only something that you go there and having fun.
01:29It's something that we need to keep being resilient to achieve that target.
01:33What does that look like?
01:34Does it change?
01:35It's looking good.
01:36You know, don't forget that a couple of years ago, we have only one race in the U.S., for
01:39example,
01:40with 60,000 people.
01:41Now we have three races with the average, for example, in Austin of 450,000 people.
01:46We are in Miami this weekend where everyone wants to come.
01:50We're going to be in Vegas in November.
01:51So the vibe is high, and the duty for us is to be resilient and relevant in American fans.
01:56You're teasing me.
01:57So more races in the U.S.?
01:59No, I don't think so.
02:00I don't think, well, I think that today the request and the money is very high also there,
02:04but as I said, we are worldwide sport.
02:07We need to respect that, and I think that already thinking that we are three races,
02:10it's a big number, but never say never.
02:12So you're also, I mean, partners are actually really flocking to, you know,
02:16Formula One in terms of partnerships.
02:18What do you think they're looking for in the sport?
02:20Well, you're right.
02:21I mean, the last five years we moved quite significantly in terms of not only quantity,
02:26but quality partners.
02:27I think that they recognize we can offer to all of them different objectives they want to achieve through us.
02:33I mean, visibility, experience, and a connection with an incredible and unique things that they can do together with us.
02:41That's what we are focusing, and that's why we are successful also with them.
02:45But has that changed?
02:46So is it investments that used to be in other sports,
02:48or do you think that just business is getting closer to sports full stop,
02:52that the experiences, that the guests experience, and the partnerships will grow and grow for sports in general?
02:57I think both, because we see the different parts that we have are coming from different sectors,
03:03we definitely have shifted a little bit from B2B business only to B2C.
03:09Now we are partners to attract younger audiences that are very, very important, common, as you know, in the world,
03:13and that's why I think that we are a sort of transversal problem that can be very good for everyone.
03:18You've had to postpone two races because of geopolitical concern.
03:22The world is getting more complicated.
03:24Are you expecting to, you know, how do you navigate that?
03:26Are you expecting more uncertainty to follow?
03:28Well, definitely.
03:30Our geopolitical risk is the highest that we have to face because we travel almost 12 months per year around
03:37the globe,
03:37and today the biggest effect is not only to have postponed or canceled two races in Bahrain and Jedha,
03:44but also the cost of fuel, the cost of logistics is getting higher and higher.
03:49That's something that we have to face, we have to manage.
03:50We are ready with plans.
03:52Of course, there are moments where we need to decide if, and hopefully not,
03:56the situation will not evolve how to react to that, but we have plans.
04:00So plans, for example, are you going to reschedule Bahrain, GP, and Saudi Arabia?
04:03I think that to reschedule completely to event is quite difficult because at the end of the year,
04:08our, you know, calendar is already quite full.
04:10We may recover one, but we need to wait and see how the situation will develop.
04:14I mean, we're talking about new races, and I know you're announcing circuits such as Portugal and Turkey
04:18also being added in 2027.
04:20How do you balance all of this?
04:22The balance is between traditional market, balanced with the street circuit, with traditional circuit.
04:27The balance is we can achieve that because there is a great demand, a great request,
04:32and the fact that all the countries that want to host F1 would love to have it put us in
04:39a great position
04:39because we can have long-term deal with them, but also ask them to invest
04:43because we don't have to forget, for us, the fans out of the center.
04:46Yeah, so what does that mean?
04:48Is it rotation?
04:48Is it new venues?
04:50Is there a percentage?
04:50Like, how do you think about, you know, trying to get the balance right?
04:53Because it is balance.
04:54I think that we already started next year to have a rotation with two European Grand Prix.
04:58We have, at the end of the year, actually, in August, the last event in Zamburg, in the Dutch.
05:05But, you know, we're going to have the next rotation of the calendar can happen after 2030.
05:12So it's a good stuff to talk because, as I said, we are in a privileged position to make the
05:17choice.
05:18Stephen Domenicali, I mean, some critics say that actually they worry about F1 teams having, you know,
05:24more than one interest or more interest than in one team.
05:27Like, how do you respond to that?
05:28Do you think there will be rules around it?
05:30Well, there is actually one exception that is Red Bull having the control of two teams
05:34because that's related to a historical situation.
05:37Red Bull did a lot for our sport, and it was a sort of recognition of what they did with
05:43us,
05:43but all the others are very clear, they have one ownership, and even if there could be potential,
05:48which is not clear yet, some financial investment, this is not related to any kind of governance to the team.
05:55So it's something that, for us, is very clear of the future.
05:58So one over to each team.
05:59So what you're telling me, it's a one-off and no one else could really do that?
06:03Correct.
06:04So there doesn't need to be an overhaul or rules being put in place or anything like that?
06:07No, no, because actually, once again, there is a lot of investors that would love to come in Formula 1.
06:13So the beauty of also their understanding with the actual team that are there to see what is the future,
06:19to be stronger in the next couple of years, is a relevant point for us.
06:23F1 Academy was, you know, I guess, put in place to also look at female drivers.
06:29Yeah.
06:29Do you see that like a Formula 2 or Formula 3 happening with meaningful impact?
06:35I think it will happen. It's already happening.
06:37I mean, we were the first not to talk but to invest in a sport that we believe has a
06:43reason to be there.
06:44We have today an incredible platform where 40%, for example, in the U.S. are female who attends on Formula
06:521.
06:53It will take time. It will take time because it's not given for granted that you will find an immediate
06:58talent that can be competing.
07:01For us, one thing is to give the possibility for the female to have the chance, but also the stopwatch
07:08is one.
07:08So we don't have to forget. It's not only a matter of passport or age or gender.
07:13It's a matter of being very strong and competitive.
07:15We want to give the platform for them to be able to compete and be able to also attract younger
07:23generations because we saw that as an effect.
07:25Yeah. And actually, it's incredible that you have Kimi Antonelli, who's only 19.
07:30Does that help?
07:31But when I speak to chief executives and business leaders, they always worry about catching the next generation.
07:36Yeah.
07:36You have a winner.
07:37We have a winner, and we have an incredible opportunity because we have now, in the last couple of years,
07:42the age of people falling for one has decreased dramatically in a positive way.
07:50So that's what we have today.
07:51We have a strong foundation.
07:53It's really because younger generation see them aspirational, and they want to follow this.
07:58They stay connected.
07:58They know better than me, and this is great.
08:01And it's also risk.
08:02I mean, it was risk-taking, right, choosing him to thrive.
08:04Yeah, it's a risk that I have to say in that respect Mercedes did a big call, and I think
08:11that Kimi has to be left under his journey to make sure that he can grow, but the effect has
08:18been phenomenal.
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