Racing’s Second Revolution - Part 5: The Objections That Will Define (Or Crush) Motorsport’s Next Business Model
Cost optimization David Vaucher Cost optimization David Vaucher

Racing’s Second Revolution - Part 5: The Objections That Will Define (Or Crush) Motorsport’s Next Business Model

The sponsorship model has been in use in some form or another almost since Formula 1’s inception, and as imperfect as it is, it’s safe.

But is it really safer in the long-term?

Arguably not, because not doing anything is itself a choice, without the benefit of having a say in the potential consequences.

Ulimately, if anything derails Racing’s Second Revolution it won’t be technical factors, since everything we’ve talked about so far rests on well-known business fundamentals.

In this fifth and final installment of the Racing’s Second Revolution series, we’ll cover the aspect of any great change initiative that is never talked about directly until it’s too late, yet has the potential to derail new ideas from the start: resistance.

The main risk is nothing more complex than skepticism.

This article addresses that head-on, and while the feeling is always the same, there could be multiple reasons behind that doubt.

Here we’ll lay out nine likely objections that executives, series managers, and investors will raise when confronted with the idea of moving beyond sponsorship, and of course we’ll explain how each can be addressed with a reliance on facts rather than gut feel.

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Racing’s Second Revolution - Part 1: Why Motorsport Racing Teams Must Move Beyond Sponsorship
Revenue optimization David Vaucher Revenue optimization David Vaucher

Racing’s Second Revolution - Part 1: Why Motorsport Racing Teams Must Move Beyond Sponsorship

If you don’t have OEM support, sponsorship is effectively your only oxygen, and if a sponsor cuts back or disappears, the cycle starts all over again.

This is the fundamental problem: how sponsorship looks or is activated is of course going to follow Ron Dennis’s playbook and be much more polished than it was in the 1960’s, but it’s still the same paradigm, and remember, even Ron Dennis’s playbook is now nearing 50 years old!

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Finding Motorsports Sponsorship to Go Racing Is About to Get A Lot More Difficult

Finding Motorsports Sponsorship to Go Racing Is About to Get A Lot More Difficult

As costs increase, the cost for teams to make it to the track will increase. As this happens, it follows that the cost for a seat will increase as well.

Imagine that you had a plan to secure an amount to fund a season, and all of a suddent, that cost goes up 10%-20%, perhaps more.

How would you approach that?

More critically, we have to put ourselves in the shoes of sponsors. Whereas they might have been inclined to provide sponsorship to a driver or race team, are they as likely to scale - or even maintain - that support in a case where, for instance, their business has been greatly disrupted by the implementation of tariffs?

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How Tariffs Could Re-Shape the (Already Stressed) Economics of Racing and Motorsports

How Tariffs Could Re-Shape the (Already Stressed) Economics of Racing and Motorsports

One might not think that tariffs would come up often in paddock conversations, but increasingly, it appears that they should. For the last several decades, the motorsports industry has operated under a globalized paradigm, but geo-political developments are such that trade policies and cross-border regulations could play a significant role in shaping budgets, logistics, and long-term planning.

From international freight to spare parts and raw materials, tariffs are set to become a hidden cost driver—one that’s easy to overlook until it begins impacting performance or squeezing cash flow. Whether you compete domestically or internationally, understanding how tariffs affect racing operations is now a must for anyone managing a program.

This article breaks down how tariffs could affect motorsport, who’s most exposed, and what teams and drivers can do to stay resilient in the face of economic and geopolitical volatility.

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