Winning Business

Author: Mark Gallagher

One of the most attractive aspects of Formula 1 racing is the relentless pursuit of excellence by everyone in the face of constant changes in technology, regulations, and the business environment. When I authored the first edition of this book, motorsport was on the verge of significant change following the decision to use hybrid engines in 2014. This was a costly process, and it diminished the excitement of Formula 1 races in the eyes of many analysts due to the drastic reduction in noise levels. Questions were also raised about the FIA's push towards making Grand Prix racing more sustainable by reducing fuel consumption, extending engine life, and developing technologies aimed at making Formula 1 cars somewhat similar to ordinary cars. Eight years have passed, and no one talks about this decision anymore; this is not only because the Formula 1 industry has already met—and even exceeded—the energy efficiency goals of these technical regulations, but also because the sport will soon end its complete reliance on fossil fuels. It is likely that in 2025, we will see Formula 1 race cars powered by synthetic fuels, most probably manufactured from the carbon dioxide that humanity has polluted the atmosphere with. The FIA, the organizer of the Formula 1 World Championship, aims to achieve net-zero carbon emissions by 2030, and each team has pledged to play its part in combating climate change. We have witnessed seismic events that reminded us that change is constantly underway and accelerating in this increasingly interconnected world. Under normal circumstances, the management change following CVC Capital's sale of Formula 1's commercial rights to Liberty Media in 2017 would have been widely discussed. Instead, our industry had to deal with the death of a driver during competition for the first time in over 20 years, accept the idea that it still has a long way to go in terms of diversity and inclusion, and learn how to adapt to the devastating impacts of the global pandemic.