“Sports and the City
The next generation of sports venues is an integral part of the urban scene. That’s changing how they serve cities, sponsors, owners, teams, and fans.
Sports venues are in flux. The costs of building and operating them have shot up while the public’s appetite for funding them with tax revenues has zeroed out. That’s changing the game for sports franchises. Yet cost is not the only driver, says Gensler’s Ron Turner. “Sports venues today are focused on hospitality. They contain more clubs, food-and-beverage options, and retail offerings—and give fans more access to information about the game—than ever before.”
Sports venues are also focused on the city. Today’s stadiums and arenas are much more likely to be located in transit-friendly urban sports/entertainment districts than in peripheral one-use sites. They can host events beyond sports, building creatively on their associations with sponsor brands. Their synergy with the adjoining district generates new revenue streams for both. This
is a paradigm shift for the industry, turning sports venues into all-purpose entertainment centers.”
“The current operating structure of F1 is such that it gives nothing to race circuits except a global calling card. But it’s a card opens many, many doors….”
“F1 is controlled by Formula One Management (FOM), in which private equity firm CVC Partners holds 70% and financial services firm JP Morgan holds 20%. But the face, voice and spirit of FOM is minority shareholder Bernie Ecclestone-a diminutive, 80-year-old, with a clump of white hair.
He is the gregarious power broker who negotiates with teams and circuits, among others. He tends to give them a deal they resent, after they see what he has kept for the people he represents, but grudgingly play along because what is left is still a fair bit. Fom is the supreme power in the sport. So, it receives all revenues from the sale of TV and Internet rights, gaming rights, and event and track sponsorships.
And the $1.5 billion entity doesn’t pay a circuit to host an F1 race-the circuit pays it an annual fee. Since FOM is a private company, official numbers are unavailable, but it’s widely quoted that 50% of its revenues are divided among the teams in a certain formula. However, nothing from that central pool comes to circuits. Circuits reportedly pay FOM $35-45 million a year as licence fee; the initial contract is for five years. Jaypee will also spend $15-20 million in operational costs-track and event management, logistics, and transport. That’s a total operating cost of $50-65 million.”
via Why Jaypee invested $400 million in F1 race when the project will make the group lose $35 million every year – The Economic Times.
Through the eye of the Go Pro cameras . Surreal.
YouTube – GoPro 2010 Highlights: You in HD.