WILMETTE, Ill. — With the racing season winding down, organizations are assessing their performance and charting the course toward the future.
In this month’s edition of the Business of Speed, we examine how sanctioning bodies navigated through last year’s shutdown because of the COVID-19 pandemic and laid the foundation to continue moving forward.
During the shutdown, sanctioning body officials took the initiative and made drastic changes from a scheduling standpoint. Part of the strategy was to mix it up — new venues, circuit configurations and date modifications.
Most of the races on this season’s calendars were run with a few minor exceptions. Officials remained flexible and made changes deemed necessary by municipal officials due to health concerns.
From a minimal admissions revenue standpoint for the prior year, race track operators knew fans would be in the stands, but at what level remained a concern entering the season. Therefore, they knew the traditional playbook was not going to be effective.
Tracks had to consider a broad range of potential revenue solutions.
They needed to grow the fan base. This meant reaching out to meet the needs of groups that have not traditionally attended motorsports events.
Officials hoped to increase visibility and ease accessibility to motorsports through outreach and promotion. The goal was to inspire new and diverse groups to be part of the racing community.
The key to success would be to develop, retain and strengthen the fan relationship on a year-round, two-way basis. The result leads to ticket and merchandise purchases during the season.
It’s a relationship that must be built on trust. This means the tracks, teams and drivers will meet the physical, emotional, financial and digital needs of their supporters.
Once the foundation is solidified, track operators and sanctioning body officials have an unprecedented opportunity to embrace all fan groups from casual followers to fanatics.
Technology is important on and off the track. The use of information for data monetization to generate revenue cannot be underestimated in today’s business climate.
Analytics are being used to guide decision-making and support marketing efforts. Tech platforms and artificial intelligence help racing entities understand fan sentiment and behavior.
The result is connecting with fans in ways that create a better fan experience and generate new sources of revenue.
Sports and entertainment have a unique role in society; they have a platform in which they promote positive change. This has become more evident over the last few years.
Series officials, teams and drivers have embraced this critical role in addressing issues related to inequality and injustice. They are becoming part of the culture and operations.
It is not an easy task since the target is always moving with shifting societal dynamics and trends.
Being proactive with decisions on social justice is not without its controversy. It can often lead to unwanted news headlines and can create fallout within various segments of the racing community.
Working with its key stakeholders and partners, the motorsports industry was able to move forward and produce positive results. New teams and sponsors entered the sport and deepened their commitments to it.
Fresh initiatives such as driver development and internship programs tend to grow opportunities at all levels of the sport.
Over an 18-month period, motorsports took the unprecedented initiative to reevaluate certain aspects of its business model to build a new future. It is not easy to continually reinvent the way that a spectator business thinks and operates.
Bold moves and the willingness to try new things — that’s what racing is all about.