Is Liberty Media’s gambling deal bad for Formula 1?
Formula 1 is one of the most popular motorsports in the world that has been generating for many years. Despite numerous opportunities, former Formula 1 owner Bernie Ecclestone refused to sell any of the advertising space to gambling companies. Since the ownership has changed, the nature of Formula 1’s relationship with gambling has done so as well.
The new owners of Formula 1, Liberty Media, secured a deal worth $100 Million back in September 2018 with Interregional Sports Group (ISG). The deal will allow this company to sell advertising space on Formula 1 race tracks to gambling companies. For years, Formula 1 has been a sport where betting was somewhat marginalized. Unlike many other sports, Formula 1 fans were not big fans of sports betting. That may all change with the introduction of gambling adverts on the racetracks.
We take a look at both sides of the story and try to weigh the advantages and downsides of Liberty Media’s deal. Keep reading for more insight that may help you make up your mind on whether the deal to sell advertising space to bookies on Formula 1 race tracks is a good idea.
Formula 1 vs. Other Sports
Michael Schumacher, Ferrari 166 F2 (1950)
First launched in 1950, Formula 1 is the world’s most prestigious motorsport. The sport has been developed from relative obscurity to worldwide popularity and today it is watched by millions of avid fans around the world.
Formula 1 was one of the few sports that had still not joined the trend of online gambling advertising. In many other sports, it is common practice for major online casinos and sports betting operators to advertise on stadiums, player jerseys, and club websites.
The English Premier League is a prime example of how online gambling operators are investing millions into getting their brands seen by sports fans around the world. Major teams like Everton, Newcastle, and West Ham all have standing deals with online bookmakers and casinos which earn millions of pounds per year.
Other sports, such as basketball, darts, snooker, and UFC have all been involved with selling advertising space to gambling companies and for the most part the fans of the sport have no issues with it. The biggest problem that Formula 1 fans have is the fact that it was one of the few sports where gambling was not a major part of the narrative. Even without heavy betting, Formula 1 has managed to thrive but now the sport may change in many ways as Formula 1 betting is likely to become much more common.
Good or Bad for the Sport?
The question of whether this newest deal that Liberty Media made with ISG is good or bad for Formula 1 as a sport has been a raging one since day one. The owners claim that it will bring much good to the sport and the teams involved. Still, thousands of angry fans worldwide have already expressed their discontent and are vigorously fighting against this decision.
Sean Bratches - Commercial Boss at Liberty
According to Sean Bratches, Managing Director of Formula 1 commercial operations, this deal will increase the overall revenue for the teams involved in Formula 1 competition. This, in turn, will make the spectacle of Formula 1 even more appealing to the fans.
In his , Bratches stated that there must be a balance between the way a sport makes its revenue and the way it serves its fans. In the mind of new Formula 1 owners, there is no conflict between the two in the aforementioned deal, which is why the deal was made and Liberty Media believe it will improve the sport overall.
However, many longtime fans of Formula 1 believe that adding in-play betting to Formula 1 races and advertising it during the actual races will make the sport all about betting and take away from the actual allure of the races.
Another concern is Formula 1 betting addiction. The new deal raises risk of many fans turning to gambling and possibly developing gambling problems, which is not the case that Liberty Media would want to associate themselves with. While the new Formula 1 owners refuse these claims and believe that such advertisements will not lead to people developing gambling issues, many sports critics suggest that it just may.
The Bottom Line
Liberty Media acquired Formula 1 in its entirety, so they have a full right to sell ad space to anyone they wish to, this goes without saying. However, the company will need to consider the implications of their newest marketing deal over the next five years for which the deal will be active and decide if it is worth it.
As it stands now, gambling advertising will become a major part of Formula 1 for the next five seasons and what happens next remains a mystery. With so many old fans bitter about Formula 1 turning to gambling advertising, only time will show if the sport’s viewership will grow or decline as a result of it.
✅ Check out more posts with related topics:
Formula 1 has, by way of its tv rights deals, turned itself into an exclusive sport. Ordinary people in Ireland and I assume many other places, can not afford the minimum €480.00 per year to watch what was for so many years a free to air spectacular. By watching the teams, and the tracks advertising plus the constant commercial breaks, are we the viewing fans not already contributing enough. Since 2010 the number of TV viewers has halved, even though the amount of air time the sport is given on TV has trebled.
Gambling is on a par with alcohol and tobacco in terms of its ability to cause social damage. F1 got rid of sponsorship from those sectors and I think gambling should be treated the same.
FI should not expose itself to this activity which is well known to be socially destructive. I am already offended that I must pay for a pleasure that was once free but to have advertising for a practice I despise forced into my lounge room with my family is more than annoying. F1 banned tobacco and alcohol advertising and to now promote gambling is unacceptable. It was always a fear that when an American organisation took over our great sport that it would be downgraded and tarnished by too much glitz and commercialism. It appears that this fear is being realised on several fronts.
Forget all the rhetoric from the Americans who purchased F1 from Bernie's group, this is all about gouging more money out of F1 for Liberty Media at the expense of what used to be the sport of Formula 1 and is now clearly a business unconnected with any form of sport. Typical American approach of placing money before any ethics. The teams won't benefit, despite all the rhetoric and fanfare, they will be left out in the cold while Liberty gouges more money out of F1 for their own benefit.
As has already been correctly stated, gambling rates with alcohol and tobacco when it comes to socially damaging and unacceptable practices. Governments in developed countries banned tobacco and alcohol advertising many years ago, F1 didn't ban it by choice. Unfortunately, the gambling lobby is pouring money (gamblers money) into government pockets to allow them to benefit from free advertising and to increase their already huge profit margins. It is sad that some members of the public are either brainwashed or not intelligent enough to understand why these companies make massive profits from the addiction of gamblers!
A very sad day for F1. Enzo would turn in his grave!
The nett result of the directional changes imposed on our sport will be a severe decline in F1 viewing figures and even worse, lower attendances at races. Morality and social responsibility should be joint prerogatives of business enterprises and Liberty Media should pay heed to the fan base without which the Sport would inevitably decline. Better still Liberty Media should find a new buyer, one that will support the fans as well as improving relations with teams and drivers.
✅ Checkout the latest 50 F1 Fans comments.