New York F1 Race Makes Plans for Ticket Prices

ny f1

Below is a news summary by Kimmy Klipsch, an Entertainment Management student at Missouri State University.

(from Sports Business Journal, March 26, 2012) The organizers of the Formula One Grand Prix of America race, which will be held in June 2013 along the Hudson River in the New York-New Jersey market, have begun the search for a title sponsor. The main title sponsor must be willing to pay $15 million and develop preliminary pricing for ticket and hospitality packages.

Leo Hindery, the race’s promoter and founder of InterMedia Partners, said that the event’s three primary revenue streams will be sponsorship, general ticket sales and hospitality. Under the terms of agreement with Formula One, race officials will have three sponsorships to sell: a title sponsorship and two official partnerships. The three companies that sign on to those deals will be featured in pre-race promotions and trackside signage that will be visible on the Formula One worldwide broadcast.

They will have more sponsors at this race than other races in the world, simply because this race is in New York. Because of this, organizers have hired SJX Partners to assist with sponsorship sales. The sales team hopes to find a sponsor by June so that they can announce the sponsor with one year to go before the race.

Race organizers have also begun outlining ticket pricing with a current plan to offer three-day hospitality packages that cost $3,000 to $4,000 per person. Included in those packages are seat locations above the pit area and catered food and drink. Three-day general admission will be sold for an average price of $400 to $450.

 

The race track course will take place along the Hudson River.

One new aspect that New York race organizers are discussing is creating ancillary events that turn the week before the F1 race into a celebration similar to the one that precedes the Super Bowl. Tom Cotter, president of Grand Prix of America, said that if this gets approved, the organizers would need to sell additional sponsorships around that celebration as well.

Hindery and all the race organizers hope to iron out all plans and sponsorships by this spring. One key point Hindery made was that they all need to respect their sponsors to ensure they want to remain sponsors for the year leading up to the event.