In this video, I will be talking about how every F1 fan can invest in their favorite sport. I will explain why Formula One Group (FWONA) has become very popular in recent years and how it can become even bigger in the future. You can find the video below.
Change of guard
Liberty Media acquired F1 in 2017, and since then Formula One Group has been a publicly listed company. However, it is a tracking stock, meaning this allows you to invest in the Formula One part of the Liberty Media business without being exposed to the rest of its business.
Since 2017, Liberty Media has been pushing hard to bring F1 to more people, especially in the U.S. CEO Stefano Domenicali said:
We have an incredible opportunity to develop new markets. Next year we will be in Miami. The United States of America represents one big challenge for us that we need to make sure we take in a good way.
The rise in popularity has been nothing but extraordinary since the takeover.
Rise in popularity
F1 has become the fastest-growing sport on social media. How did they do it?
- A YouTube channel where fans can watch highlights, on-track interviews, technical analysis, and more.
- Drive to Survive on Netflix and a realistic video game by Electronic Arts.
- F1 TV, a streaming channel offering different angles, sound bites, and more data during and after the races.
And as for increased interest in the U.S., since 2012 there's been a Grand Prix in Austin, and starting next year there will be a second one in Miami, where tickets are almost sold out. What would make F1 a huge success in the U.S. is an American driver. Take Christian Pulisic, for example, a young American who joined Chelsea. The year he joined, his jersey outsold that of Cristiano Ronaldo in the U.S.
For the time being, whatever Liberty Media is doing, it's working. The company is playing the long game.
For the full insights, watch the video below.
*Stock prices used were the closing prices of Oct. 13, 2021. The video was published on Oct. 14, 2021.