How F1 should consider its expansion strategy

The FIA’s expansion strategy must consider the sporting product, and specifically expansion’s impact on quality, jeopardy and connection (QJC).  

Andretti-Cadillac were strong bidders and it is no surprise they got the nod.  Their heritage in motorsport through Michael Andretti’s experience as a driver and Cadillac’s expertise in engineering means on-track performance was likely to be superior to other bidders, protecting the quality of the F1 product.  This may add to race jeopardy, and brings further connection in the US through both Andretti and the Cadillac brand. 

Conversely, the LKYSUNZ bid was based on building connection to fans in South East Asia.  While Asian brands account for only around 5% of F1 sponsorship deals – a fraction of the addressable market – performance concerns and related risks to race quality ultimately cost them.

Either way, the QJC framework provides a structured way to predict future commercial value based on the impact on the sporting product.

By Ben Marlow
Chief Strategy Officer 

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