This is why you love F1 | Sidebean

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1:03Wealthy old men and broke teenagers have one thing common. They're both essential for business, but this Wealthy old guy did not give a damn about teenagers. And his mentality was slowly but surely killing formula one. So how did this sport go from this teenage fading Wealthy Boomer to the success that it is today? You guys have clearly asked for it, so we are delivering. This is company forensics F1. Before we go on with the video, as much as we love making these YouTube videos, this is not what pays the bills and keeps the lights on. At Slideswing Wealth companies raise capital by telling better stories. We can crawl the web to find investors for you, or we keep track of investor conversations. We help create slides for those investors. We help you run financial modeling. We help you keep track of your SaaS expenses. And all of this is part of our suite of tools called Slightly. A tool for startups and founders that you can sign up for free at SlipBeen.com.

2:05I wasn't a huge racing fan, but I did love drive to survive. I mean, I'm not the only one. Tons of people now follow formula one and it's not by chance. But if you watched Formula One in the early 2010s, things weren't like this back then. In fact, it was pre-boring. It was the fastest sport on earth, and it was heaven for nerds and racing fans alike. But it was dull. It had no passion, and that's all thanks to Barney Eclestone. Eclestone became a one-man empire that controlled anything and everything related to F1. He viewed F1 as a sport of numbers, and there's no denying his impact in this sport. Under his control, F1 became a global sport with races worldwide and millions of fans. It created the icons that we know today. And people respected Barney. Eclestone failed as a racing pilot, but was good at making money in real estate and selling bikes. And with a passion for racing, but no talent, he just chose to manage teams. And then he bought his own team, won many races, and hired some of the biggest names in Formula One during the 70s and 80s.

3:05His first team was so successful that he sold it for 5 million when he had purchased it for 120k. That's how good he was as a business man. And then of course he would take this knowledge and then move up the ranks in F1 in 78 Eclestone along with Max Mosley, negotiated rights with the FIA, which by the way hated him. But they just couldn't keep him contained. Among the things that he controlled were, for example, the commercial and the distribution rights of Formula One, and he knew that there was a massive potential there to make money and to keep the teams happy. Eclestone leveraged TV rights that benefited both F1 as a sport and the racing teams. And of course he also got a massive cut of these deals. And that's how he turned this small and niche sport into the global phenomenon of the 90s and the 2000s. But Eclestone wasn't perfect. Eclestone stirs the pot every now and then. He's not only shared laughs with controversial figures, but he just can't keep his mouth shut. And he was very emphatic on one thing. If I was in Challenger the World, I think I'd put Mr. Putin in Challenger the World.

4:06So this is this old-school guy. He's 91 at the shooting of this video. But his recipe had worked for decades and so he is a billionaire. But it's not like he cares about and he'll end cool things. And that unfortunately showed. Eclestone was a tyrant. He light controlling communications so it wasn't unusual for him to ask teams to delete this or to change that. But that's not all. The main man also insisted that drivers refrain from being too vocal on social media. Eclestone hated social media. His audience was something else. And he wasn't wrong. Back then 70-year-olds with a lot of money watched a lot of F1. At one point only 14% of the F1 audience were below 25 years old. But Eclestone saw by TV and nothing else. But this had a major problem. And to better tell this story, who else that YouTube's come on? F1 wasn't the problem was. It was very difficult for anyone other than the super hardcore fan who understood all of the new ones, all of the build up to the race to jump on TV on a Sunday.

5:11Watch the race and understand really what was going on. So that's why from 2008 to 2016 F1 had lost 33% of its viewers. Plus all millionaires, they tend to die quickly. But F1 had a lot of promise and one company knew and understood this. Change is inevitable even if it meant replacing Eclestone. The purists love what he had done and after all he had been there for four years. But he just couldn't beat time. 2017 the ownership of Formula One group finally exchanged hands. The new owner was Liberty Media. This is a giant that you've never heard of. But I bet that you know, Series XM and the Atlanta Raves. Well Liberty owns them and now they own Formula One. And the price for this was $4.5 billion. That's of course shit done of money, but there is a lot of promise in this sport. The changing of the guard couldn't have been more evident and more quick. After 40 years, Eclestone was no longer in Formula One and Liberty gave him a role that he didn't even understand. But don't feel bad for him. Now that wasn't the only immediate change. Liberty Media made it clear that things were going to be different now, even if fans weren't expecting much.

6:16Oh, it's new ownership. Okay, I mean, there's maybe a lot more that F1 could be capable of, but I didn't realize given where it is now in 2022. The potential for F1 was so much higher than even I thought it was going to be, especially amongst kind of a younger audience talking about it. Because I was the only kid at school like I knew who was into F1 at all. It was all, you know, it was everyone's dads and uncles. You know, I didn't anticipate it, but it would have the impact that it has, but it's been pretty incredible. To much debate, they revamped the logo they created and you see him for the sport and they made it clear. Everyone would no longer be a sport. Now it's entertainment. Now let's give Eclestone quit. He was right in one thing. Holt fans were true fans. This episode is brought to you by Welch's Fruit Snacks. Back to school season can be tough on parents. But choosing a snack you and your kids can both get behind doesn't have to be. Stock up on Welch's Fruit Snacks, made with whole fruit, and now made with no artificial dyes.

7:20It's a snack kids already love, and one you can feel good about giving them. Go back to school with Welch's Fruit Snacks, now made with no artificial dyes. Payday bars have a bone to pick with the other candy bars, enough with the toppings and layers and stuff. Payday bars are just salty, crunchy peanuts and sweet caramel. Delicious! Payday, peanut caramel bar! Instagram teen accounts come with automatic protections that limit who can contact teens. The content they can see and the time they spend on the app. Learn more about teen accounts and Instagram's ongoing work to protect teens online at Instagram.com slash teen accounts. But there was nothing between them and those who didn't care about everyone. There were no cash flow fans, and cash flow fans are worth big money even if they're broke teenagers. And these fans watched short videos, they watched clips, other beats and pieces, but they won't watch an entire race.

8:22So Liberty Media understood the assignment, and it was what Eccleston had done wrong all these years. Social Media, understanding social media. Social media made me more of a fan because it really gave us that insight that we'd never have before. F1s a ridiculously complicated sport from a technical point of view, and that's completely ignoring the human, the driver experiences in the paddock go into these different parts of the country, or mingling the relationships between these drivers. And this is of course what Liberty Media did and has been doing, but it's not a guessing game. They analyzed months of data and concluded that a short bit of content goes a long way, much more than a two hour race. And that means this. With more content every day, fans could now interact more. Liberty Media also educated the casual fan through data and history and personalities. So more and more, fans went from casual to much more than that. Formula One YouTube channel is one of the best out there.

9:28It's the perfect example of this Liberty Media's technological revolution. Every race has and has always had more than 90 cameras, 140 microphones, and this endless data screen. So it's as close as you can get, but then there was this big elephant in the room. Liberty Media tackled the one topic that Eccleston hated, and it makes perfect sense. How are you not going to exploit profiles such as Lewis Hamilton? It's not only about the big names, social media allowed fans to feel closer to the other characters that didn't make the podium. Instead of barring their personal social media accounts, Liberty Media went crazy with it. And the question, who's behind the master plan? Well, there's this guy. This is Chase Carey. Epic mustache aside, Carey is this media genius with experience in Giants like Directive V. Liberty Media appointed him a CEO, and it was his vision in part the one that revolutionized this sport, or entertainment channel. And then there's this guy. So Sean was all of things commercial, but he took a step further, made enormous efforts to overhaul sponsors, and now these include crypto companies and even Google. And there are other changes as well. F1 had a new website packed with data and an app for diehard fans to pay and get more information about behind the scenes content.

10:33And for all of those who dreamt of being an F1 pilot but never had the chance, then there's erasing. F1 has partnered with several companies to expand the F1 esport series, even hiring big names in the gaming industry. In 2021, this digital league saw record viewership with 23 million views growing 103% from 2020. So there it is. In the Ecclestone era, Drive to Survive would have been impossible. But Liberty Media went there. Action. The Doctor series revealed the drama and golfing F1 from near death experiences to friendships and rivalries. This is unlike anything that we've seen in raising. And of course people love it. It introduced a whole bunch of new people to the sport. This series wasn't only about going fast, it showed us a human side that people loved. So the casual fan now had a reason to watch the race on Sundays. Drive to Survive was also vital in reaching the one market that had eluded Formula One for years. The US. This land was dominated by NASCAR and baseball and they refused to embrace these. Similarly, the elitist sport but the documentary has begun to change that as well.

11:35There's been a concerted effort from F1 in its past to try and capture the American audience. Seemingly always felt because this clearly an appetite for motor racing in the USA. It doesn't know question. Since Drive to Survive premiered, viewership increased in the US and more fans enrolled in the Formula One app. In addition, viewership increased 56% in 2021 compared to 2020. To help this, Liberty Media has used this experience to draw in big names and to turn them into real fans. Liberty Media has been clear that they want to make every race and every event as big as the Super World. It's on its way to accomplish that, honestly. And this of course leads to question. Is this the right path? Sure, F1 has grown to overcome the senile attitude of the early 2010s but its recipe has made it more successful than others. These are all the major sports that you can think of and there it is in the first place, Formula One. So of course, those broke teenagers where in the end a gold mine. Of course, some purists, those old men that barely loved so much,

12:35might not be the biggest fans of where Formula One is heading today. It just might be too bold and well, too young for them. But that's honestly perfect for the future. Mr. President, my company told me the explosion on our rig along to per second. Causing massive water displacement and triggering the tsunami. They all heat the blame all may. Tom Cruise is. Digger, don't listen to this mess. And Digger is gonna dig us out. From the director of Birdman and the Revenant. What would happen if I stopped doing it? You stole it! You freeze the deck, that's what! With great power, comes great deniability. I'm not the Earth, Danny. Digger, see the train long on. Only in years until we're second rated R. Under 1790, without a parent. Push your limits, train with precision, see the results. At Equinox, that type of performance loving. Iconic spaces that inspire. Personal training, backed by real data.

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