Formula One: From Humble Beginnings to Billion Dollar Business

The first Formula One world championship raceTechnological advancements continued to be
took place at Silverstone race track in Britain inmade throughout the late 70’s and 80’s
1950 and was won by Italian Giuseppe Farina, whoincluding the introduction and subsequent banning
only just managed to defeat his Argentine teamof turbocharged engines. Perhaps one of the
mate Juan Manual Fangio. However, Fangio wonmore significant developments were electronic
the championship five times over the next tendriver aids, with the first active suspension
years, earning him the title of “grandsystem being used by Lotus in 1982, followed by
master” of Formula One from many motora progression to semi-automatic gearboxes and
sport enthusiasts.traction control. Despite complaints that new
During this initial period, Formula One was almosttechnologies were determining the outcome of
entirely dominated by teams run by carraces more than the drivers’ skill, a move to
manufacturers, including Ferrari and Mercedesban the new electronic aids proved fruitless as it
Benz. However, over the next 20 years the sportwas discovered that a ban on such aids was hard
of Formula One changed dramatically with theto police.
introduction of not only engineering innovationsThe teams of McLaren and Williams dominated
such as fuel injection and aluminium chassis butthroughout the 80s and into the 90s, with the
also instances of sponsorship in the sport - therivalry between F1 legends Ayrton Senna and
first being when Lotus painted Imperial TobaccoAlain Prost capturing fans' attention all over the
livery on their cars in 1968. Lotus was also theworld until Prost’s retirement in 1993.
first team to introduce ground effectSenna’s death during the San Marino Grand
aerodynamics that helped the cars increase theirPrix in 1994 also made Formula One authorities
cornering speeds by providing tremendous downlook more closely at driver safety standards - a
force.move which has ensured no further driver
Significant business decisions were made duringfatalities in the sport since that day.
the 1970s, when a man by the name of BernieThe dawn of the new millennium was also a new
Ecclestone rearranged the way Formuladawn for Formula One as Michael Schumacher, a
One’s commercial rights were managed.skilful German driver, began his dominance of the
Ecclestone gained a seat on the Formula Onesport, eventually winning an unprecedented five
Constructors Association following his purchase ofconsecutive driver championships with his team,
the Brabham team in 1971, before becoming theFerrari, picking up six constructers championships.
president of the association in 1978.During this time racing authorities made a number
Ecclestone began offering Formula One as aof changes to the rules regarding the qualifying
package to circuit owners they could either takeformat for races, the points scoring system and
or leave, when previously the circuit ownersmore besides. These changes were designed to
negotiated with the teams individually andincrease safety and combat the spiralling cost of
controlled the teams’ income. In return forFormula One.
this package, almost all circuit owners had toBut, despite worryingly low viewing figures for
surrender trackside advertising, thus beginning theracing seasons in the early 2000s, the future of
big money business of Formula One sponsorshipthe sport looks bright, with Bernie Ecclestone
that has seen tobacco companies, car credit andorganising a number of races in new countries,
consumer finance companies and oil companiesexpanding Formula One into new areas of the
among numerous corporate sponsors all spendingglobe and attracting new teams and drivers, all
millions of pounds to have their names and logoslooking to pit their wits against the big boys of
on the cars and alongside the racetrack.the sport.