Designing a track is not just about setting the scene for a gripping race – it’s about what’s going on around the edges, and for the rest of the year
Gone are the days when motor racing circuits were passion projects for wealthy individuals. Today, they’re big business and they need to generate revenue every day of the week.
The opportunities to make money from motor racing are bigger than ever before: the Netflix show ‘Drive to Survive’ has hooked a younger, much wider demographic, massively expanding the potential market. But the risks have grown too. When Formula 1 rolls into town, it’s like hosting the World Cup or the Olympic Games for a weekend. The flipside is that global events are vulnerable to turbulent geopolitics – underlined by the cancellation of this year’s Bahrain and Saudi Arabia Grands Prix due to conflict in the Middle East. That makes it even more important that a track can generate revenue outside of major events.
We always come to the table with ideas, because a client may not necessarily be thinking that way. If we only give them a race track, then we’re not doing our job as designers.”
Ben Willshire
Partner and Head of Motorsport Track Design
To explore the options, Ridge got together with our long-time collaborator and go-to industry expert Mark Hughes, director of Mrk1 Consulting and former operations director of the Brands Hatch, Bahrain and Yas Marina circuits (pictured below).
Make it big #1: Occupancy maxxing
Most new F1 circuits are state-backed projects: countries have long used the prestige and profile of F1 to drive tourism and investment. But there are only 24 Grand Prix events a year, and F1 is only one weekend for each track – adding up to a lot of potential downtime for some of the world’s most expensive sports venues.
FIA Grade 1 tracks cost hundreds of millions of pounds to build, and operators pay large sanction fees to host races. To recoup this investment, Ben and his team make sure there are multiple, flexible spaces that can each be rented out individually, from the paddock area to the media centre to the hospitality suites.
In fact, the “MICE” industry – meetings, incentives, conferences and exhibitions – is one of the biggest customers for racetracks, says Mark. “A track is no different to the NEC in Birmingham or a hotel with a conference space and meeting rooms.”
Just like hotels, racetracks are aiming for occupancy levels that are as high as possible. “At Brands Hatch, we operated 364 days a year and had a sales team focused on filling every piece of real estate. At Bahrain, in our busiest year we did 420 events. We’d have a conference in the Paddock Club, meetings in the VIP tower, and different groups driving the off-road course and the track. That’s the holy grail for racetracks.”
A track is no different to the NEC in Birmingham or a hotel with a conference space and meeting rooms.”
Mark Hughes
Director, Mrk1 Consulting
Make it big #2: Give people more reasons to stay
Motor racing circuits also generate value beyond their boundaries, as a magnet for tourism and related development. The Mandalika circuit in Indonesia already had a spectacular backdrop on the shores of Lombok Island, but the track was also purpose-designed to maximise its development potential: “We routed it so there could be hotels and resorts all the way round,” says Ben.
His team also led the masterplan for Lithuanian Motorsport Park (shown below), soon to be under construction, which doesn’t just have tracks for racing, karting and driver training, but an exhibition centre, concert venue, resort and hotel complex.
On a much larger scale, Abu Dhabi’s Yas Marina Circuit is just one component of Yas Island, a leisure destination that also includes theme parks, marinas, hotels and a huge shopping mall. This attracts 15 million visitors throughout the year, encouraging them to stay (and spend money) in the emirate for longer. Ridge and Mrk1 are currently working on an F1 destination in Saudi Arabia that is set to be even bigger.
Make it big #3: Invite some neighbours
Motor racing is the pinnacle of a massive global automotive industry – and many companies are keen to collocate close by in the hope that some of the stardust will rub off. At Silverstone, Ridge worked with landowner MEPC to masterplan a 130-acre business park and innovation campus that is home to F1 teams and startups, and continues to expand to meet demand.
We’re also designing the new Oro Station track in Canada as the anchor for a business park focused on technological excellence – although the automative sector is responsible for one third of Ontario’s exports, the province currently doesn’t have anything like this.
Make it big #4: Go exclusive
Oro Station is also an example of a lifestyle track, one of the fastest-growing types of motor racing circuit around the world. These are more akin to a private golf course than a Grand Prix venue. “There are a lot of wealthy people who don’t play golf but they do collect sports cars,” says Mark. “The only place they can safely drive them at speed is on a racetrack.”
This is a different commercial model, based not on attracting as many visitors as possible, but on selling exclusivity and luxury to a very select few. Joining fees can range from US$50,000 to US$300,000, with annual membership fees on top. For that, you and your family can enjoy perks such as exclusive track access, garage space and the chance to buy or rent properties around the circuit. “We design the tracks for the driving experience, rather than wheel-to-wheel competition,” says Ben. “It becomes a weekend hangout and somewhere to store your cars.”
The key, when we work with Ben and his team, is to look at how we can wrap commercial real estate around a race track, and to think outside of the box about all the other attractions that could complement it.”
Mark Hughes
Director, Mrk1 Consulting
Lifestyle tracks also offer a much higher level of hospitality – the difference between first or business class, and the regular gate areas at the airport. “We’re designing for a market that expects premium interiors and a seamless journey.”
There’s no doubt that successful motorsport venues are about a whole lot more than just the track – but exactly what that looks like is very much an open question. “There are so many ways to commercialise a race track,” says Ben. Mark agrees: “It really depends on the client, how much land they have, and what else is happening there. The key, when we work with Ben and his team, is to look at how we can wrap commercial real estate around a race track, and to think outside of the box about all the other attractions that could complement it.”
Let's talk
Ben Willshire is a Partner and head of Motorsport Track Design at Ridge. Contact him at benwillshire@ridge.co.uk
Mark Hughes is Director of Mrk1 Consulting.
