![In today's episode, I will be joined by CEO Stefano Domenicali and investor, Arman Gokgol-Kline. <br /> <br />To start the conversation, Arman and I frame the business of Formula One with a high-level overview of how the league operates and generates revenue. Then Arman joins me to speak to F1 CEO Stefano. We touch on Stefano’s own story growing up with Formula One, how the team, driver, and ownership worlds align, and what gets him most excited for the brand moving forward. Arman and I then wrap up by diving into the white space opportunities for F1 and what key lessons for builders and investors.<br /> <br />For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/33643069/gokgol-kline-formula-one-the-iconic-motor-sport<br />-----<br />Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br />Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br />Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss<br /> <br />Show Notes<br />[00:00:00] - Introduction<br />[00:03:00] - [First question] - The overall size of the F1 fanbase<br />[00:05:22] - Three key buckets of revenue and their percentage split<br />[00:07:21] - Business economics of the race tracks and promoter incentives<br />[00:11:22] - Thoughts on expanding the annual race and track count<br />[00:13:49] - Business economics of the race broadcasts<br />[00:18:59] - Business economics of sponsorships and partners<br />[00:21:21] - Where Stefano found his early passion for motorsport<br />[00:23:32] - What it was like to run an F1 team<br />[00:27:14] - Why they decided to open up social media to drivers and partnering with Netflix<br />[00:33:07] - The Concorde Agreements and what made 2021’s agreement unique<br />[00:35:24] - How the budget is so crucial to a driver and their engineering team’s success<br />[00:38:13] - Key factors define a great winning engineering team<br />[00:42:26] - What makes a driver great and stand out over time<br />[00:46:14] - Thoughts on the motorsport industry in a world aiming for environmental sustainability<br />[00:48:48] - What will be most different about F1 five years from now<br />[00:52:09] - Stefano’s most memorable moment across his entire career<br />[00:53:10] - Biggest whitespaces in F1 that present great monetization opportunities<br />[00:58:49] - Unique team dynamics and how teams are built and developed<br />[01:02:39] - The story of Lawrence Stroll and Aston Martin <br />[01:04:35] - Why BMW dropped out of F1 and why a manufacturer would choose to quit<br />[01:07:34] - Reasons why Porsche has never stepped into the motorsport space<br />[01:09:40] - Major costs centers of the business today<br />[01:11:25] - The history of Bernie Ecclestone And F1 racing<br />[01:14:08] - Lessons one could pull from F1 and unlocking value <br />[01:15:30] - Areas of content production that F1 has done well<br />[01:17:10] - Additional ways F1 could monetize the relationships between teams and fans<br />[01:21:25] - Lessons that business builders can take away from F1’s story<br />[01:23:00] - Lessons that investors can take away from F1’s story<br />[01:24:25] - Where to learn more; Drive to Survive; Concorde Commercial Agreement<br /><br />#businessbreakdowns #formula1](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
In today’s episode, I will be joined by CEO Stefano Domenicali and investor, Arman Gokgol-Kline.
To start the conversation, Arman and I frame the business of Formula One with a high-level overview of how the league operates and generates revenue. Then Arman joins me to speak to F1 CEO Stefano. We touch on Stefano’s own story growing up with Formula One, how the team, driver, and ownership worlds align, and what gets him most excited for the brand moving forward. Arman and I then wrap up by diving into the white space opportunities for F1 and what key lessons for builders and investors.
Show Notes
[00:00:00] – Introduction
[00:03:00] – [First question] – The overall size of the F1 fanbase
[00:05:22] – Three key buckets of revenue and their percentage split
[00:07:21] – Business economics of the race tracks and promoter incentives
[00:11:22] – Thoughts on expanding the annual race and track count
[00:13:49] – Business economics of the race broadcasts
[00:18:59] – Business economics of sponsorships and partners
[00:21:21] – Where Stefano found his early passion for motorsport
[00:23:32] – What it was like to run an F1 team
[00:27:14] – Why they decided to open up social media to drivers and partnering with Netflix
[00:33:07] – The Concorde Agreements and what made 2021’s agreement unique
[00:35:24] – How the budget is so crucial to a driver and their engineering team’s success
[00:38:13] – Key factors define a great winning engineering team
[00:42:26] – What makes a driver great and stand out over time
[00:46:14] – Thoughts on the motorsport industry in a world aiming for environmental sustainability
[00:48:48] – What will be most different about F1 five years from now
[00:52:09] – Stefano’s most memorable moment across his entire career
[00:53:10] – Biggest whitespaces in F1 that present great monetization opportunities
[00:58:49] – Unique team dynamics and how teams are built and developed
[01:02:39] – The story of Lawrence Stroll and Aston Martin
[01:04:35] – Why BMW dropped out of F1 and why a manufacturer would choose to quit
[01:07:34] – Reasons why Porsche has never stepped into the motorsport space
[01:09:40] – Major costs centers of the business today
[01:11:25] – The history of Bernie Ecclestone And F1 racing
[01:14:08] – Lessons one could pull from F1 and unlocking value
[01:15:30] – Areas of content production that F1 has done well
[01:17:10] – Additional ways F1 could monetize the relationships between teams and fans
[01:21:25] – Lessons that business builders can take away from F1’s story
[01:23:00] – Lessons that investors can take away from F1’s story
[01:24:25] – Where to learn more; Drive to Survive; Concorde Commercial Agreement