Liberty Media Ousts Bernie Eccleston

Audible subscribers can listen to all episodes of businessus wars ad free right now. Join Audible today by downloading the Audible app It's october sixteenth, nineteen ninety seven at ten Downing Street London Rain tap softly against the windows of a drawing room. Inside, a small group huddles around a polished table Prime Minister Tony Blair leans back in his armchair, sleeves rolled slightly above the cuffs He's only five months into the job, but he already looks comfortable in the role Opposite him sit two men who in their own world wield as much influence as any prime minister Motorsport powerower brokers Bernie Ecclston and Max Mly. sixty six year old Ecclsteston is small, quiet, and almost motionless but the intensity in his eyes suggests a man accustomed to getting what he wants Still. It's his ally Moseley who does most of the talking The problem is the European Union Prime Minister Blair smiles faintly. You won't believe how often I hear that mostly doesn't return the smile The European Commission's draft directive would completely ban tobacco advertising and sports. If it goes through as written, Formula One will lose the majority of its sponsorship income overnight Well, how much are we talking here onene hundred fifty million pounds every season Eccleston cuts in Prime Minister, F one contributes nine hundred million pounds a year to British exports If the tobacco money goes, those exports could be lost Well, why can't the teams just find other sponsors They could, just not at the same price mostly nods in agreement F one is one of the last truly global platforms the cigarette companies still have That's why they pay a premium But if you're opposeed to plug will be forced to go where the money is Meaning We'll have to race in markets without those restrictions. East Asia, the Middle East you're saying You'd leave Europe Well, we'd have no choice And that will hurt the British economy. Most of the teams are based here in Britain and they provide fifty thousand high skill jobs plus thousands more part time jobs If the sport does move east, those jobs will go with it s room falls quiet Blair taps a finger lightly against the arm of his chair, then turns to Ecclston. So what exactly are you asking Mosley answers before Eccleston can speak We're asking you to recognize the economic reality Ecclston remained silent. He doesn't need to say anything because everyone in the room understands the deeper context. Months earlier, Ecclsteston donated one million pounds to Blair's reelection campaign Now, he seems to expect something in return Blair stands, bringing the meeting to a close Well thank you for coming in We recognize the problems and we willll think about what you've said The following day, The Prime Minister quietly instructs his ministers to find a way to exempt Formula one from the proposed ban on tobacco advertising Tw months later. The European directive passes with One exception Milla one in the media questions swirl about whether Eccleston bought influence with Britain's new government whatever the politics looks like Eccleston got the outcome he wanted. Tco money continues to flow into Formula onene Once again Eccleston has stitched together a solution The business of Formula One is becoming increasingly tangled held together mostly by his personal deal makers He works For now But the entire empire depends on one man. And all that could unravel a moment Eccleston is no longer there to hold it together and that moment. may come sooner than he thinks rom Audible Originals, I'm David Bown and this is Business W I'm Raza Jeoffrey, and in the new season of The Spy Who, we go back in time to meet Benedict Arnold, the spy who betrayed the American Revolution. As America fights for freedom from Britain, Arnold emerges as one of the rebel's greatest generals. But when his loyalty is pushed to the limit, he turns spy and devises a plot to shatter the rebellion and make George Washington Follow the Spy Wh now, wherever you listen to podcasts. You can also listen to the full season of the Sy Wh who betrayed the American Revolution early and ad free on Audible When a charming neurosurgeon rode into western towns selling a persona of confidence and care Patients trusted him cowboy boots in the operating room and became sought after by patients He promised to heal them Instead, he left a trail of broken bodies. This is a story of greed, betrayal, and a fight for justice. Listen to Dr. Death, the cowboy, wherever you get your podcasts, or binge the entire series right now, only with Autumn In the last episode, two motorsport empires emerged on opposite sides of the Atlantic. In the United States, NASCAR grew out of southern bootleggers outrunning the law with trunks full of illegal alcohol. That soon became the nation's biggest motorsport But in Europe Another iconic championship was taking shape and at the center of it, Bernie Eccst A former used car salesman who rose from team owner to the undisputed power broker Formula one He transformed the sport from a loose collection of European races into a global spectacle that tours the world Now As the twenty first century approaches The paths of NASCAR and Formula onene are about to diverge Racing is more global than ever The media landscape is changing and the tobacco money that fueled motorsports for decades is under threat To survive these challenges, the two sports will pursue V different strategies This is episode two Pedal to the medal It's the late nineteen nineties in a quiet wood paneled office in London. Bernie Eccleston sinks into a deep leather armchair His small frame almost swallowed by it Ccross from him, his lawyer's desk is buried beneath papers It's a familiar setting Over the past few years, Eccleston has kept his legal advisors busy. But today, feels different He's now in his mid sixties, and the strain of running Formula onene is beginning to show warned that the relentless pace of travel, negotiations and race weekends is taking a toll on his health and in particular on his heart Surgeons have told him he needs major surgery And that started Eccleston thinking about something he's rarely had to confront before his own mortality across the room. The lawyer flips through a document then clears his throat He has more bad news to deliver If Eccleston were to die suddenly, his fortune would be subject to British inheritance taxes Bill could be enormous. forcing his family to sell the business he spent decades building. with his lawyers's warning ringing in his ears and the clock ticking Ecclston starts looking for a way to ensure that his fortune goes to his family, not the government his solution is to float his Formula One assets on the stock market Over the years, Eccleston has constructed a web of companies collectively known as the Formula One Group Together, they control the sport's commercial rights, television deals, race contracts, sponsorship arrangements Eclson believes the whole operation could be worth as much as four billion dollars. too unlock that value. He partners with investment bank Solomon Bothers. prepare an initial public offering but almost immediately He runs into a proble The stock market doesn't operate like Formula onene Ecclston Seun's detailed contracts. He prefers quick negotiations and verbal understandings And this vagueness is a deliberate strategy by leaving deals slightly undefined Tams, race promoters and broadcasters can never quite pin him down No one is ever entirely sure where they stand And that uncertainty usually gives Ecleston the upper hand But now that ambiguity is working against him. The formula one group is a sprawling web of entities across multiple jurisdictions built on fuzzy deals Solomon Bothers can't even fully map the business and without clear ownership investors struggle to put a price on what investors might actually be buying with the IPO stallling and Eccleston wanting a quicker solution Pivots Instead of selling shares to the public, he looks for another way to unlock the value of the business and cash in hand now before he dies and the tax bill comes due He turns to Robin Saunders, an American financier based in London Together, they pursue a different strategy a massive debt deal. The plan is to sell bonds to banks using Formula One's future earnings as collateral Investors lend money now and get repaid with interest over time. When negotiations conclude Banks are willing to lend one point four billion but they add a crucial condition The entire deal depends on Ecclston continuing to run Formula one. trouble is. He hasn't been entirely honest about how long that might be It's late M, nineteen ninety nine in London, England. Morning light spills through the tall windows of a high rise office On the desk sits a half empty champagne bottle a smattering of glasses and Binder labeled Formula O Group bond offering Financier Robin Saunders stands by the window rubbing her temples A nearly two years of negotiations Several banks have now agreed to lend one point four billion dollars against the future revenues of Formula One The bonds are sold work is signed But Eclon didn't show up to the celebration last night which is strange He never misses the chance to take a victory Saunders reaches across her desk and picks up the phone Robins Honers of familiar voice answers Good morning, Robin Bernie, I was wondering where you disappeared too last night By. You see Robin. Really not What do you mean, Naughty I u Didn't quite tell the whole truth My health Saunders feels a chill creep down her spine What do you mean you didn't tell the whole truth have to have a triple heart bypass. You what I'm having heart surgery. When? twoo o'clock. Today, the day after the bond sale And you didn't think to mention this before. Saunders stares at the floor, her mind racing. The banks bought more than a billion dollars of bonds on one key assumption that Eccleston would still be around to run Formula one if he dies on the operating table, the entire deal could unravel. The banks will want answers, laawsuits will rain down, and her career will be shredded. Bernie, you assured me you were in good health. I am Mostly, I just thought it might complicate things if I mentioned it earlier. Saunders closes her eyes Of course he did. For Eccleston, information is power But he's keeping silent on this could destroy everything. She inhales deeply, forcing herself to stay calm Bernie. Yes I hope the surgery goes well. Know this If you make it out alive I'm gonna kill you myself Tisserss relief. The surgery goes off without a hitch Ecclston wastes little time getting back to work and with his heart and tax troubles behind him He sets out to make Formula one even bigger. urn of the twenty first century The F one Championship calendar has seventeen races that are mostly concentrated in Europe For many observers, this already feels like a full schedule But Eccleston disagrees More races means more revenue And with the United States proving resistant to Formula one He starts looking for growth elsewhere like the rapidly growing economies in Asia and the oil rich nations of the Middle East The governments of these regions are eager to raise their international profile Posting a Grand Prix would do exactly that. And for autocratic regimes facing criticism over their human rights records A Fmula one race would also serve as a powerful public relations opportunity Ecclston understands this dynamic and intends to profit from it Because unlike Formula One's historic European circuits, which are often run by cash strapped local promoters The new hosts are willing to pay enormous fees for the privilege of staging a race It's the early two thousands in Eccleston is not for the first time in his life. meeting with royalty Across from him is a tall man in a white robe and red checkered headdress Salman bin Hamad al Khalifa. Crown prrince of Brain The prince leans forward, eyes fixed on Eccleston Bernie, I want Formula onene in Bahrain Ecleston gives a polite smile Well, that's wonderful, your Highness, of course. But I'm sure you're not the only one Lebanon, Dubai and Egypt are interested too I know Fan will do it properly It's an expensive proposition And we are prepared to pay more than thirty million dollars a year And we will cover the costs of flying in the teams and all the technical equipment Eccleston raises an eyebrow. That's serious money. Still He shakes his head slightly. I don't doubt you have the financial resources. But you don't have a track. Then we will build one. Where exactly? In the desert. You're talking more than a hundred million dollars there. The prince nods as if discussing the price of lunch. That's acceptable. Ecclston strokes his chin thoughtfully. You do understand that if Bahrain joins the calendar others in the regions will want the same. H? That's exactly why we must move first. Eccleston studies him for a moment. Weighing the numbers and the implications of the deal Finally He extends his hand. All right, it's a deal. Bahrain is only the beginning of Formula O's advance East accross Asia More governments line up with offers that are hard for Ecclston to refuse Among them is China which wants the prestige of hosting a grand Prix in Shanghai China's proposal closely matches Bahrain's A hosting fee of around thirty million dollars per race plus the full cost of constructing a brand new circuit. and staging the events. In two thousand four, both Bahrain and China joined the championship calendar No expense is spared. the newly built Bahrain International Circuit There's an enormous permanent paddock Eliminating the need for teams to ship their motorhomes halfway around the world The High grip racing surface is meticulously engineered from stone imported from England Bahrainis even spray the surrounding dunes with a sticky adhesive prevents sand from blowing onto the track When the races finally beganough The Grandstands aren't packed in both Bahrain and Shanghai Thousands of seats sit empty But Ecclsteston isn't worried He believes these countries represent the future of the global economy Their middle classes are growing and their cities are expanding By bringing Formula One to these markets early Ecclston is planting the sport's flag there before its rivals This is a very different strategy from the one being used. byy another giant racing series across the pond while Formula One is charging ahead internationally In the United States NASCR beginning to wobble after decades of booming popularity car racing barreling toward a crisis As Americans, we're constantly grappling with a fundamental question. Do we settle for the world as it is Or do we strive to create the world as it should be Our answers tend to ebb and flow through the decades But once Just after a war that nearly tore us apart We came as close as we've come to answering it And it's a story worth a closer look I'm Michelle Obama, and I'm proud to announce Higher Ground's new podcast Reconstruction. The unfinished promise. Guided by bestselling author, Malcolm Gladwell, and featuring my husband, Barack Obama, this limited series uncovers the untold stories of reconstruction what they mean for us today and how our past can shape the future we choose to build. Reconstruction, the Unfinished promise, is available now on audible or wherever you get your podcast. Whether you're exploring your current fascinations or discovering new ones, Audible has all the stories that willll introduce you to your most fascinating self. Tap into a whole new world of heated conversations with a Sucy romantasy series. 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Sign up now to become a member and get any audio book every month Plus exclusive podcasts. pllans now start at eight dollars ninety nine cents Audible Be fascinated, be fascinating It's february two thousand one justust over three years before Formula One's debut race in Bahrain And the crowds watching the Daytona five hundred are in shock For years, Dale Earnhartt Sr. has been NASCAR's defining figure A seven time champion with seventy six NASCR cup race wins across four decades. to millions of fans Dale Earnhartt Sr. is NASCAR tough, fearless. deeply connected to the sport's blue collar roots But while battling for the podium, Earnhardartt was caught in a three car crash on the final turn. Now His car sits surrounded by safety crews as ambulances race towards the scene And it's clear something is terribly wrong A short time later NASCAR announces that Earnhart is dead. His death leaves a hole that's impossible to fill Earnhardt wasn't just any driver. He was NASCAR's biggest star. twoo years later Earnhard' son Dale Earnhardt Jr. finishes third in the standings. offering fans a familiar name at the top of the leaderbard. The championship itself feels anticlimactic Kensetith cruises to the title despite only winning One race out of thirty six his steady run of top ten finishes built a lead so commanding that the last few races barely mattered Fans lose interest And television viewership drops by twenty two percent Point system is becoming a problem for NASCAR. But it didn't fail overnight This is what happens when a business confuses a star for a system. NASCAR's growth had been fueled in large part. by a single larger than life figure Dale Earnhartt gave NASCAR its identity and its edge But with her own heart gone weakness in NASCAR's point system is completely exposed Sponsors soon noticed the drop in viewership After thirty years, tobacco giant RJ. Reynolds ends its deal to name the championship after its cigarette brand Winston After a hurried search Wireless operator Nextel steps in as the new title sponsor But with ratings sliding and corporate partners growing nervous NASCAR needs something more dramatic than a new championship sponsor The task falls to newly installed CEO Brian Franz Grandson of NASCAR founder, Bill Francez Sror Within weeks of taking the top job He implements the biggest change to the sport in decades The chase for the cup The new format moves the sport toward an end of season playoff system similar to the NFL or the NBA. Drivers spend the first part of the season. battling to qualify for the chase Then the championship is decided over the final ten races Suddenly Every race matters again The chase promises drama right through to the final lap. That should keep fans watching until the end of the season. of the chase is immediate In its first year, five drivers head into the final race with a chance to win the championship Millions tune in to see who takes the title producing a forty seven percent increase in viewership the chase restoring excitement to NASCAR's core product France turns to a second challenge NASCAR has been an all American sport. Drivers have traveled abroad for occasional exhibition races, but the NASCAR Cup has been a strictly US affair. Still France can't ignore what's happening elsehere across the globe Formula One is pushing aggressively into new markets France begins to wonder whether stock car racing should follow which creates a dilemma NASCAR is deeply tied to U. S. culture. taking it abroad risks shattering that carefully constructed image France finds a middle ground He partners with a Mexican entertainment giant to launch NASCR, Mexico Although the series bears NASCAR branding It's run independently from the US. competition with almost exclusively Mexican drivers and teams. Three years later, NASCAR purchases a Canadian stock car series and also rebrands it with a NASCAR name Once again The move expands NASCAR's footprint without diluting its core product You know, until now NASCAR and Formula One have followed roughly similar paths But now those strategies are beginning to diverge Even though it's expanding to neighboring countries, NASCAR isn't trying to make itself global Unlike Formula One NASCAR was never conceived as a worldwide sport But Brian France doesn't want to ignore the international business opportunities and giving Mexico and Canada their own versions of NASCAR kind of solves that problem France isn't scaling NASCAR He's cloning it. Scaling stretches your core product into new markets, often diluting what made it special Cloning, on the other hand, builds parallel versions tailored to different markets You can move more slowly, you can make tweaks and adjust for local conditions. When your brand is as tightly tied to culture as NASCAR. Trying to export it wholesale risks breaking the very thing that made it successful Coning That lets you grow without losing your identity but across the Atlantic Formula One is heading in a very different direction. Instead of adapting to local markets Eccleston is pushing the sport outward turning it into a truly global spectacle. Behind the scenes, the business of Formula One. is becoming increasingly complicated It's two thousand five at a private club in London In a quiet corner of the dining room, private equity investor Donald Mackenzie pours himself a glass of wine Across the table is Formula one seventy five year old boss, Bernie Eccleston They met for the first time a few months ago and hit it off Since then, they've had a few dinners together and McKenzie has joined Eccleston's network of informal advisors But today, Eccleston is barely touching his plate of grilled fish Instead, he gestures with his fork, stabbing the air as he vinents his frustrations Selling those bonds was a bloody disaster The grid's falling apart. Teams are coming and going like busses Jaguar pulled out Honda threatens to do the same every other week Everyone says it's too expensive And they're racing Same story every Sunday Michael Schumacher wins again Fans are bored stiff Mcenzie nods but can't get a word in Eclston's on a row The EU is still after us over tobacco sponsorship If they manage to ban that, half the money disappears overnight. And America's a lost cause. You saw the Macced Indianapolis, right? Only six cars started the recent United States Grand Prix after tire problems forced the rest of the field to withdraw It was yet another embarrassing setback for Formula One in the United States And for Recleston It's the final straw And That's when I realized we're never cracking America I'm not even going to try anymore. Eccleston leans forward worst part. Bloody banks I spend my life answering to them They don't even understand the sport, but they don't trust me to run it either. So that's Formula onene today, a total mess MackKenzie sits back thoughtfully This kind of downbeat talk doesn't scare him private equity firm CVC Capital specializes in distressed assets You know, Bernie, I'm Hearing something else, I think What I'm hearing is that you've got a global sport Watched in hundreds of countries Massive television reach, incredible brand. But it's a business that's not being managed properly. you're hamstrg by the people above you. exactly McKenzie folds his napkin leaving a neat crease Why don't I buy it? You Yeah Take it off the bank's hands sayay out of your hair, give you a Chance to fix the business, add value For the first time all lunch Ecclston's mood l liifts No interference None. Well, how do I know I can trust you MackKenzie reaches into his jacket pocket and slides a card across the table. Why don't you call the people at MotoGP? We've owned it since nineteen ninety eight. If you like what they tell you Give me a call The first chance he gets, Eccleston makes that call And he likes what he hears. CVC Capital has taken a hands off approach with MotoGP They retain the motorcycle racing Championship's pre acquisition leadership. while funding new initiatives to help it grow This is exactly the kind of owner Eccleston wants for Formula One Soon A deal is dropp CVC buys the Fmula O group from the banks for two billion dollars Eccleston remains as CEO Even with a more accommodating owner One troublesome group remains. the teams. One year later June two thousand seven in Surrey England It's a quiet afternoon inside a small coffee shop The kind that smells faintly of warm plastic and crisp white paper Behind the counter, the store owner works through a stack of documents, feeding pages one by one into a humming machine. A woman steps inside, carrying a thick bundle of papers held together with binder clips She sets the pile on the counter with a dull heavy thud Her request is simple. She needs these documents scanned and transferred onto a CD RM. The employee glances down at the pile. It's enormous Nearly eight hundred pages It'll take a while, but It's good for business He removes the clips and begins straightening the pages for the scanner, but as he flips through the first few sheets, something catches his eye A logo Ferrari's prancing horse The copy shop's owner is a devoted Formula One fan Curiosity gets the better of us. He flicks forward a few more pages and sees Technical drawings Sematics detailed measurements The inner workings of a Formula One car Trying to sound casual, he asks the customer whether she works for Ferrari She hesitates for a moment before explaining that her husband does She leaves Promising to return in a few hours to pick up the papers and the CD ROM But something about the exchange lingers. Once she's gone The store owner sits down at his computer. and types her name into Google Within seconds he finds her. and his jaw drops Her husband doesn't work for Ferrari. He's the chief engineer at Ferrari's biggest rival in F one. McLaren The shop owner searches for a contact address for Ferrari's Formula one team B He opens a blank email and begins typing The discovery that McLaren has obtained confidential Ferrari blueprints triggers one of the biggest scandals in the history of Formula One Subsequent investigations reveal what happened McLaren's chief engineer received nearly eight hundred pages of technical data. on Ferrari's car from a disgruntled Ferrari mechanic Fallout is enormous A months of hearing M Claren is handed a record breaking fine and stripped of its team points for the season By Gate It is only the first in a series of controversies that dominate headlines over the next year During the two thousand eight Singapore Grand Prix The Renault F one team instructs driver Nelson PK Jr. who deliberately crash his car. The resulting safety car bunches up the field allowing PK's teammate Fernando Alonso who had already pitted for fresh tires. pull ahead of rivals who now face a losing choice and lose their position or stay out on worn rubber When racing resumes, Alonso surges to victory crash Perfectly timed When the scheme comes to light It becomes known as Crashgate and it further undermines confidence in Formula One's integrity The scandals aren't limited to the teams either In two thousand eight The British tabloid newspaper publishes a sensational article about Max mostly under the headline F one boss has Sick Nazi orgy with five hookers The story carries particular weight because Mosley's father led the British Union of Fascists in the nineteen thirties Mosley later sues the newspaper for invading his privacy and for libel and wins a partial victory in court Eccleston only adds fuel to the controversy. In a newspaper interview, he argues that democracy hasn't achieved much He then goes on to praise Adolf Hitler as an example of a leader who was able to quote things done Unsurprisingly. The remarks trigger widespread outrage. further tarnishing the sports image. Eccleston seems powerless to stop the scandals And increasingly, he's making headlines himself As the negative stories pile up An uncomfortable question begins circulating inside Formula One's owner, CVC Capital is Bernie Ecclston. The man who built Formula One Now the person holding it back and across the Atlantic NASCAR faces its own uncomfortable questions because boost it got from the chase for the cup. is alady running out of gas. I'm Raza Jaffrey, and in the new season of the Spy Wh, open the file on Benedict Arnold. The spy who betrayed the American Revolution America is fighting to free itself from the British Empire And one of its foreost generals was Benedict A He's a smugger turned battlefield hero admired for his aggressive tactics But when a war wound, A new wife, debts and politics test his loyalty to the Max Turn spy and devises a plot to shatter the revolution and help Britain capture rebel commander in chief, General George Washington And that plot would make him the most infamous traitor in US history Follow the Sy Who now, wherever you listen to podcasts You can also listen to the full season of the spy who betrayed the American Revolution early and ad free on Audible There are people you're told to trust, lawyers, teachers, especially doctors. But what happens when you put your life in someone's hands and they betray you? The hit podcast doctor Death is back. and this season is unlike any other. doctor Death, the cowboy, is the story of a charming neurosurgeon who rode into western towns selling a persona of confidence and care He wore cowboy boots in the operating room and became sought after by patients He promised to heal them. Instead, he left a trail of broken bodies This season is about a doctor who was never truly held accountable for the patients whose lives he ruined A story of greed, betrayal, and a fight for justice that will leave you questioning who to trust Listen to Dr. Death, the cowboy, wherever you get your podcasts. or binge the entire series right now, only with Audible It's two thousand six. and NASCAR has slipped back into reverse The momentum created by the chase for the Cup didn't last long Just two years after its introduction, the novelty wears off leaving NASCAR's bosses facing a troubling reality fans are drifting away again The chase isn't enough to fix the underlying problem which is the NASCAR He isn't capturing the imagination of the next generation of race fans Attendance att tracts is down sharply. For the first time in years, many races fail to sell out Fewer than half the events on the calendar fill the bleachers Television ratings are also sliding, dropping by six and a hal percent in two thousand six. compared with the previous year For a sport heavily dependent on TV money ate sponsorship. trend is alarming Worried about the sports direction, NASCR CEO Brian France attempts another reset. In two thousand seven, the organization introduces a radically redesigned race car It's called Car of tomorrow The new machine is largely a response to the death of Dale Earnhart Sr. whose fatal crash in two thousand one exposed the dangers drivers face on the track The car of tomorrow. is wider and taller than its predecessor. Its roll cage is moved farther back, while the driver's seat shifts toward the center. to create a larger protective crumple zone during side impact Energy absorbing materials are used throughout the chassis From a safety perspective The design works Drivers are able to walk away from crashes that might previously have caused serious injuries But fans car looks The boxy design earns it an unflattering nickname The flying brick worse still The standardized chassis means the Chevrolet, forward and dodge entries look almost identical For many longtime supporters, the visual identity of the competing brands is part of NASCAR's appeal Now, that's gone. Even the first car of toomorrow race winner Kyle Bush. calls the new cars terrible and says they suck Tomorrow, e So here's the problem NASCAR's core appeal is baked into its name, stock CR The machines in Victory Lane are supposed to look like something sitting in your driveway That's the magic racing as brand identity. Detroit used to have a phrase for it win on Sunday, sell on Monday But if this is supposed to be the carb tomorrow, then to a lot of fans Monday suddenly looks a whole lot more pressing withith Americans falling out of love with the sport NASCAR launches a new advertising campaign featuring drivers speaking directly to the camera. Maybe you know who we are, but do you know who we really are We're ladies. And not so gentle men We're a mad scientist. where outlaws turn heroes. We're part athlettees. astronaut. and all'll show off. The message targets younger people who aren't already fans And it's a necessary shift in focus too NASCAR's largely white and southern fan base is aging. Just fourteen percent of NASCAR's fans are under thirty five, compared to forty four percent of the audience watching F one If the sport doesn't bring in younger fans and soon Its audience will literally start dying off It's a problem Formula One doesn't face to the same extent Thanks and no small to its most famous driver It's may twenty fifteen in New York City. and the steps of the Metropolitan Museum of Art have been transformed into the world's most glamorous red carpet It's the Met Gala, one of fashion's biggest nights Camera flashes light up the streets as celebrities file past the photographers Kanye West and Kim Kardashian posed together as photographers shout their names. A few steps away, Beyonce glides up the carpet And among the movie stars, music icons and fashion royalty, a new celebrity appears. Tw time Formula one world Champion Louis Hamilton dressed in a stylish blue waistcoat and jacket Hamilton pauses halfway up the famous staircasees, cameras fire from every direction It's a sign of just how far the British driver's fame now stretches Formula One finally has an A lister registers in the US But while Hamilton is Formula One's most recognizable star, He's also clashing with the very organization he represents Hamilton loves sharing his life online Millions follow his posts on Instagram, where he uploads behind the scenes and In car footage from race weekends But almost every time he posts Formula One's lawyers send him cease and desist letters, demanding his posts be taken down. to Formula One's longtime boss, Bernie Eclston Social media Alien concept Now in his eighties, he sees little point in chasing younger fans online In one interview, he dismisses the idea outright, arguing that young audiences aren't worth the effort because They quote don't buy Rolex. Wow. Here's a classic case of optimizing for your current customer at the expense of your future ones High end sponsors may value older, wealthier audiences. Everyone gets that G depends on who's coming next, not who's already there. There are a lot of brands that get this wrong. Davidson and you listening ignoring younger consumers doesn't protect a business caps it and Eccleston's outdated beliefs are about to collide with the new realities After seven years of ownership, CVC Capital has dramatically increased Formula One's value Eccleston has continued expanding the championship