Money, visibility, sportwashing: When Formula 1 takes on an air of geopolitics

If, for several years, so many new countries have been joining the Formula 1 calendar, it is not a coincidence. Indeed, the acquisition of Formula 1 in January 2017 by the Americans of Liberty Media, for 8 billion dollars, allowed the top category of motor sport to enter another dimension. Faced with a severe lack of visibility and therefore low attractiveness, this acquisition had a clear objective: to reposition Formula 1 as a media and entertainment brand, as stated by Sean Bratches, former commercial director of Formula 1 in 2017.

And if this bet was ambitious, the success is gigantic. At the heart of this new strategy is the partnership with Netflix and the series “Drive to Survive,” whose first season was aired in March 2019. Thanks to its storytelling and behind-the-scenes vision of Formula 1, the series is a real hit and continues to attract younger fans. This new enthusiasm for Formula 1 has also translated into increased audiences for broadcasters: in 2021, there was a 48% increase in audience in France and a 58% increase in the United States.

This strategic development has also been accompanied by the emergence of certain continents, which were previously underexploited. While this is the case for the United States with no less than three Grand Prix, the Middle East is the most glaring example of this new direction taken by Formula 1.

Formula 1, at the heart of an economic diversification strategy for Gulf countries

The Middle East is at a crossroads: the Gulf states account for nearly 50% of global oil exports, and diversifying their economies is necessary. Formula 1 has thus become a driver for the development and economic diversification of these countries.

Thus, the Vision 2030 projects of Saudi Arabia and Qatar National Vision 2030 testify to this desire to change horizons, with sports at the heart of these new strategies. And while football occupies an important place for Gulf countries, is Formula 1 also undergoing a change of dimension, as evidenced by the estimated amount of investment by Saudi Arabia between 2020 and 2030 in the discipline: 1.4 billion dollars. The Wahhabi kingdom asserts its short and medium-term ambition. These ambitions are confirmed for the Gulf states with long-term contracts for their Grand Prix: until 2036 for Bahrain, 2032 for Qatar, and 2030 for Abu Dhabi and Saudi Arabia.

The investments from the Gulf States allow Formula 1 to generate enormous revenues, to the point where the top category of motor sports can no longer do without the Middle East, which contributes to financing a portion of the rest of the season. The involvement of these countries is total.

A matter of visibility, marketing, and sponsorship

A true means of diversifying an economy that is too dependent on oil, Formula 1 also provides Middle Eastern countries with increased visibility. “Putting on the map” were the words of Sheikh Hamad al Thani, father of the current Emir of Qatar, in 2004. This phrase reflects the desire of these states to integrate into the world and make their region a competitive space. In an era where Formula 1 is reaching record numbers, this positioning of Gulf States is not surprising at all; it is an opportunity not to be missed.

However, acquiring this visibility must be maintained, it is not enough to have a Formula 1 Grand Prix, it must be used. This is where marketing and sponsorship come into play. In 2021, a holding company (Saudi Sports Company) was created by Saudi Arabia and its Ministry of Sports, with the aim of acquiring worldwide television rights. We also talk about positioning marketing strategy, the ability to exist through sports, by hosting major recurring competitions. Qatar is part of this dynamic, with the Losail circuit, which hosts both Moto GP and Formula 1. But by hosting major competitions, and particularly a Grand Prix, what could be better than having a spokesperson. With Guanyu Zhou arriving in Formula 1 in 2022, China has found its asset to shine. Although he has still not been able to race in his home Grand Prix, this should be done in 2024. However, this does not prevent China from benefiting from commercial advantages and developing the image of Formula 1 in its country through its driver. A winning strategy that also benefits the development of Formula 1, and guarantees visibility that allows China to firmly establish itself in the premier category of motorsports.

Sponsorship is also an essential element in gaining visibility. Today, Formula 1 is supported by major sponsors, which the whole world gets to see during races. While Rolex is an essential sponsor, it is indeed Middle Eastern sponsors that have established themselves in recent years, such as Qatar Airways and Aramco, the Saudi Arabian oil company. The Gulf States continue on their path and continue to establish themselves as the new Eldorado of Formula 1.

An intra-regional competition

Faced with tensions that revolve around the region, competition also takes place through sports. Indeed, Formula 1 is also a means for these states to assert themselves on the regional and international stage. Thus, the organization of a Formula 1 Grand Prix allows each one to show the extent of its influence and domination.

These states all want to develop their international image through sport. A problem that Simon Chadwick, specialist in the relationship between sport, geopolitics, and economics, does not fail to highlight: « These countries are in competition with each other on all fronts. If one of them opens an art museum, the other will want to do the same. If one invests in a football team, the other will do the same. The same goes for sports events. They copy each other because the image they convey is very important to them. »

Sport and Formula 1, nonetheless, remain an indirect means of competition for these Middle Eastern countries, as the influence and visibility on the international stage are essential for them to become true powers.

Sportwashing: States seeking to improve their image

However, not everything is clean on the CV of these states and this strategy as a whole is not innocuous. On the contrary, they are even accused of “sportwashing”: the act of enhancing their image through the use of sports.

The disregard for human rights is notably at the center of these criticisms. Hashem Hashem, an activist from Amnesty International, stated in 2021: “« These sports events are used to portray an admirable image after years of scandalous violations of human rights, such as censorship, restrictions on freedom of movement for women and activists, and torture inflicted without trial on opponents.” »

If Formula 1 wants to go to these countries to change mentalities, as explained by its boss, Stefano Domenicali, it is nevertheless the drivers who have taken a stand so far. During the 2021 Qatar Grand Prix, seven-time world champion Lewis Hamilton wore a helmet with LGBT flag colors in an effort to show his support for people facing these discriminations.

The situation is the same in China, which will return to the calendar in 2024. While the country is facing international opposition regarding the concerning situation of the Uighurs, the Formula 1 authorities are pleased with the return of China and its Shanghai International Circuit. Azerbaijan is also at the center of discussions: Formula 1 cannot ignore the situation in the country with Armenia in the Nagorno-Karabakh region. The organization of a Formula 1 Grand Prix should not overshadow the political situation in a country, let alone contribute to whitewashing any questionable situation. From this perspective, Formula 1 still has work to do in order not to serve the interests of states engaged in misconduct.

Undeniably, Formula 1 is attractive. A true instrument of power, both economic and strategic, the top category of motor racing allows states with ambition to assert themselves and build an image on the international stage. Sport in general serves as the flagship of state development strategies, and as French geopolitologist Pascal Boniface reminds us, no one can deny that sport is a geopolitical issue.