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INTERNATIONAL MOTORSPORTS MANAGEMENT |
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The Business of Motor Sport |
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How to get started……..
Where to start? - What type of Event? - How much to invest? These questions are particularly relevant in emerging economies where there is a limited motor sports tradition and infrastructure.
Event Format Formula One ™ is understandably at the top of everybody’s wish list but there are many other excellent international championships and racing series, open-wheelers as well as touring cars, which can provide excellent sporting spectacle and entertainment , thereby generating the desired media & PR impact to create superior events and significant tourism and business activity. IMM maintains contact with major international racing series and we assist our Clients in selecting the best possible event format.
Temporary Street Circuits Low investment—maximum impact To create maximum impact down-town temporary street circuits are ideal as the event is on the streets right in front of the people in a high-density area. Street circuit events often attract much larger spectator numbers than permanent circuits are likely to do, at least for the first few years, especially if it is in an emerging economy where there is limited tradition and understanding of the ins and outs of motor sport. Street circuits are built on a temporary basis, mainly for once-a-year events and are the cheapest and most effective way to get started. Apart from generating superior media impact they can create a city carnival atmosphere and provide significant opportunities for local retail and leisure outlets. Depending on local conditions temporary street circuits can be established for US$8-15 million.
Permanent Circuits Theme Parks—Sports & Leisure Precincts Permanent circuits require long term commitment and substantial investment, ranging from US$ 30 million up to several hundred million depending on the size of the project. Circuits are major projects, often developed some distance away from cities. They require a good transport infrastructure and also significant promotional activities in order to encourage spectators to travel some distance. This is an issue in emerging economies where people are not very familiar with motor sport. We strongly recommend that new circuit developments include much more than a multi-purpose racing circuit. Circuits can no longer survive from traditional motor racing events, driver training, corporate drive days and so on. They must become sports and leisure precincts and incorporate theme parks and other leisure and entertainment facilities in order to attract a much broader demographic base. If land size permits the site can also include a country club, golf course, hotel, casino and many other attractions as well as motor sport industry precincts relevant to area and region. Why not then build a theme and entertainment park and maybe a country club and leave out the racing circuit? This is a valid thought. However, the racing circuit and the hosting of international motor sports events receives significant media and television exposure thereby making the entire complex world famous. ………..Motor sport is therefore the tool which creates all the attention and promotion.
Business Opportunities and New Businesses Emerging
Major motor sports events together with the establishment of combined motor sports complexes, theme parks and leisure precincts can deliver significant opportunities to the local economy and generate substantial employment.
They will provide scope and economies of scale for local business to be part of all aspects of the supply chain and hence retain revenue within the region. This is especially true in the areas of tourism, travel and accommodation, advertising and promotion, media etc.
Apart from the tourism related activities there is likely to be increased economic activity in the areas of: · Transport & Logistics · General catering · General equipment hire · Printing and advertising · Cleaning and waste management · Maintenance and operation · IT &Telecommunications · Conferences and events (outside motor sport)
Entire new businesses are also likely to emerge from year round operation, especially in the areas of: · Event Management and Officials Training. · Driver Training and Road Safety · Catering · University Affiliation and practical management training (events and sports management) · Car Industry Support · R&D Automotive components · R&D Alternative Fuels
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Street Race action…. |
Governments, local businesses and the local community benefit from the business of motor sport.· International motor sports events are used as a tool to generate media impact, as well as growth in tourism, business and employment. · New businesses and whole new industries can also emerge as a result of hosting major motor sports events. |
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immsport.com |
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Spectator packed temporary down-town Street Circuit |
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One of the best street circuits events in the world, the Clipsal 500 in Australia—200,000+ spectators. |
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Suzuka Circuit, Japan. One of the first circuits to include a Theme Park. |
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Concept for low-cost permanent circuit. Designed as staged development to include other leisure facilities at a later stage. |
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Grand Stand Complex and main straight, Sepang International Circuit, Malaysia |
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Grand Stand Complex Bahrain International Circuit |