F1 has a global reach cricket would die for; so can F1 challenge cricket? - The Economic Times
Viewed from Mumbai, it is easy to imagine cricket dominating the global sports landscape. But wake up in Manchester, next to the ageing Old Trafford cricket ground, and you’re more likely to see cricket as a fading force. And if you’re from Munich or Milan, the chances are that you probably won’t even have heard of the sport. The same is not true of Formula One. F1 has a global reach cricket would die for. It offers some unique business practices, too. Kevin Alavy measures cricket against F1
By virtue of its British roots, the appeal of cricket is principally focused on the Commonwealth. F1 has been much more successful in building its global fan base by virtue of a number of factors.
Most importantly, the basic principles of the sport are far easier to understand (even if its nuances such as the DRS remain as impenetrable to outsiders as the LBW law).
F1 also has a far more simplistic base appeal - to drive as quickly as possible - something to which even a young kid can aspire. The inherent advantages of F1 from a commercialisation perspective have been maximised by the sport’s organisers, Formula One Management.
They have provided a unifying force over the past 30 years, working with the teams and the circuits to optimise the sport’s appeal. A key part of their commercial strategy has been to ensure as much visibility as possible for F1.
By striking broadcast deals with free-to-air broadcasters wherever possible right around the world, they have helped to keep the sport top of mind. By contrast, in major cricketing nations such as England and New Zealand there are literally zero hours of free-to-air live cricket coverage during the course of a year.
These differences help explain why F1 is a far more lucrative sport than cricket. F1 offers global reach to sponsors, with fans right around the world.
Very importantly, that includes tens of millions of fans in key emerging markets such as Brazil and China, as well as across the developed world.
By contrast, cricket doesn’t provide a global platform to brands. There are zero audiences for cricket in major economies such as France, Germany, Italy, Brazil and Russia. The perception of an upmarket audience for F1 also helps the sport’s finances.
In particular, the corporate hospitality opportunities in the paddock generate huge revenues. This helps to explain the huge sponsorship deals that are struck.
For example, Philip Morris’s sponsorship of the McLaren team is reportedly worth over $1 billion over 10 years.
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