•In Britain political awareness of the importance of the motorsport industry has grown in recent years especially during the Blair tenure. Frank Williams was knighted in 1999.•Political pressure on Formula One has also strengthened abroad, with other countries gaining the right to host the races.•The Asian Countries: China, Indonesia, Malaysia and Korea represent important markets for Formula One’s sponsors, the Tobacco firms
•MIA is an Accredited Trade Organisation for motorsport UK Trade & Investment (UKTI)•MIA is a member of the Confederation of British Industry (CBI) – provides members access to the “Voice of Industry”.•Works with the UK/EU Parliaments to support the sectors long-term role in the economy•Close dialogue with UK politicians – MIA is joint secretary of the All Party Motor Group•Works with UK Regional Development Authorities – promoting motorsport industry
Other factors of Politics:•EU enlargement•The euro•International trade•Taxation role
•Formula One flotation by Private equity firm delayed until 2014 as a result of a market turmoil and a legal battle engulfing its chief executive, Bernie Ecclestone. •The floatation was expected to reduce theuncertainty about the economic environment felt by constructors, improving the teams revenues from broadcasting. •Major financial institutions are taking equity stakes in constructors that were traditionally taken by Tobacco sponsorship. In 1998
•CVC had 63% stake in Formula One, but in May 2012 a $1.6 billion deal with Waddell & Reed, BlackRock, and Norway’s Norges Bank Investment Management, saw the private equity firm’s share reduced to 35%. •Annual turnover = ₤6 billion ( with £3.6 billion exported) •Motorsport Valley® – major source of value-added to the UK economy – R&D spend •of ~30% of turnover > UK Pharmaceutical and IT industries. •Events management, public relations, marketing, sponsorship and support functions ~ ₤1.7 billion / year of Industry total.
Other economic factors:•Mergers and acquisitions reducing constructors and sponsors •Interest rate exchange rates•National income•Inflation•Unemployment•~4,500 companies involved in UK Motorsport and Performance Engineering Industry•38,500 full and part-time motorsport jobs of which 25,000 are engineers •Sources of research for industry to discover new markets and develop fresh opportunities•2200 companies achieved > 50% of their sales from motorsport engineering and services (MES), 75% of which were established between 1980 and 2000.
There are no genuinely ‘definitive’ current statistics available, despite endless requests over the past decade by MIA to Government – Department of Business Innovation and Skills – all of which have been rejected. The only definitive national figures ever produced were those in the MIA’s ‘National Survey of Motorsport Engineering and Services (MES) 2000’, which stated, at that date…
•First Concorde agreement of 1981 between FOCA (Bernie Ecclestone) and FISA (Max Mosley) sealed worldwide involvement.•Ageing population•Attitudes to work.•Income distribution•Networking dinners – key speakers from the Sport and Industry •Supports educational initiatives including Formula Schools and career advice •Technology Transfer events – with Defence, Marine and Aerospace industries •Events to improve knowledge of critical issues
•The UK = pole position•Formula One – technological pinnacle of world motorsport – all the constructors (with the exception of BMW-Sauber, Ferrari, Toro Rosso and HRT) are based in the UK. •UK is a small country with firms throughout Scotland, Wales and Northern Ireland supplying the global Industry with leading-edge technology used in Formula One and the majority of the world’s racing categories.
•Members from motorsport, high performance engineering and tuning companies; race and rally teams; governing bodies; motorsport services; research organisations; race circuits; Universities and colleges…
•‘Motorsport Valley®’, The largest concentration of UK motorsport firms with Oxford at its centre.•A wealth of motorsport companies whose precision engineering and advanced technology skills are increasingly exploited by the mainstream automotive industry. •Cutting-edge performance engineering, competitive, ‘can do’ and rapid production culture embedded in this Industry.
•Companies from other industry sectors – such as Defence, Marine and Aerospace – have also learned to turn to the motorsport industry whenlooking to accelerate the solution of their engineering problems and provide competitive advantage over their competitors.
•A supporting services include specialised legal, financial and insurance capabilities, has also built up around these world-class design and manufacturing businesses.
•Environmental issues and the impact of F1 is influencing the FIA •Aligning the Formula One fuel regulations relating to future environmentally friendly commercial fuels.•Planting 25 000 trees in Mexico, to recycle the carbon dioxide generated by the sport.•MIA-Promotes & encourages energy efficient technologies in motorsport through the MIA’s ‘Cleaner Racing’ initiative, first conceived in 2001
Other aspects•Global warming issues
•In 1997 Karel van Miert, the European Competition Commissioner, investigated the contracts that loink F1, FIA, Constructors and the Broadcasting companies. This is where the floatation of Formula One was initially postponed. •The Eurpean Working Time Directive was introduced on 1st October 1998. If employees took up there legal right to refuse to sign the waiver the viability of the industry could be questioned.
Other Legal aspects•Competition law•Health and safety•Employment law
BookMartin Beck-Burridg, Britain’s Winning Formula: Achieving World Leadership in Motorsports, Macmillan business,