NOVEMBER 9, 2022
F1 can cope with global recession says Domenicali
F1 CEO Stefano Domenicali thinks Formula 1 can weather a forthcoming global recession.
The sport's revenues have recently dropped, but Liberty Media says that is due to factors like the axing of the Russian GP.
"The attendance increase is just magnificent in terms of what Formula 1 is bringing mainly to new audiences," Domenicali told Wall Street financial analysts.
"What I can say and share with you is that we already see an incredible number of pre-registrations with regards to the ticketing of next year. So this is a good sign."
For the teams, though, costs are skyrocketing - despite the budget cap. Auto Motor und Sport claims inflation will force the cap to rise beyond $150 million to cope.
Domenicali admits the world is facing a recession.
"In Europe, where I'm living, it is clear that this recession is taking place," he said. "But I think that the way that we are structured, the way that we have done the deals, will protect us and will enable us to move forward in this direction.
"Being a world championship, we can spread around the world the risk of having this kind of situation to manage. On the other hand, the fact that we have long-term agreements will reduce the exposure to this risk.
"And there's not a challenge but a big opportunity to move forward in how we can maximise the revenue and monetise the revenue that we can take from the fact that Formula 1 has become more and more attractive," the Italian added.