Formula 1 Powerboat Tour Races are contested across North America. The series’ spectator base blends the brand loyalty of the Motorsports Fan with the buying power of the recreational boater. Formula 1 Powerboat Racing typically produces the biggest motorsport’s event of the year for the markets it visits. Through Live Fan Attendance and Media Coverage, Formula 1 Powerboat Racing reaches hundreds of thousands of consumers. Motorsports are recognized as one of the best marketing tools available. Even in today’s challenging economy, North American sports sponsorships were expected to grow 4.0 percent in 2016 to $21.4 billion. Sports sponsorships are expected to grow at a greater rate than other sponsor categories, including entertainment, causes, arts, festivals and organizations.
Motorsports represents 38% of all the sponsorship dollars spent on sports marketing, and is more than twice all the money spent in sponsorship of traditional professionals sports such as football, baseball, hockey and basketball. One in six sponsorship dollars spent in this country is spent on motorsports marketing. Owners of a recreational boats are middle-class Americans. Seventy-one percent of boat owners had a household income of less than $100,000 and half had a household income of less than $75,000. Recreational boating continues to be an important factor to the U.S.economy contributing $36.7 billion in direct sales of products and services in 2013 a three percent increase compared to 2012. Retail sales of new boats and engines in 2013 totaled $9.8 billion a five-year high and a 10 percent increase compared to 2012. Sales of new traditional powerboats grew 12 percent in 2013 to $6.5 billion.
There were 960 thousand traditional powerboats (new and pre-owned) sold in 2013 There were 532,170 new boats sold in 2013, corresponding retail value totaled $7.6 billion an increase of 11 percent from 2012. Formula One Boats racing is extremely sponsor- and spectator-friendly. At most events, the pit area is open to fans and guests of sponsors, giving them a personal experience with this exciting sport. Consumers who are racing fans bond with their sport and their favorite drivers. A survey conducted by Performance Research of Newport, R.I., found that more NASCAR racing fans are far more loyal to sponsors than are the fans of other major sports 71% of racing fans say they buy sponsor products. 38% of Major League Baseball fans say they buy sponsor products. 38% of National Basketball Association fans say they buy sponsor products. 30% of National Football League fans say they buy sponsor products. 28% of International Olympics fans say they buy sponsor products.
Benefits to the Hosting City and Surrounding Areas
There are many positive and value added benefits that come with hosting a Formula 1 Powerboat Racing event. Thousands of dollars in revenues can be expected to be generated from the hosting city and county over the course of the weekend event. What are some forms of revenue that can be expected to be generated in connection with a Formula 1 Powerboat Racing event?
HOTEL RESERVATIONS: The host and local hotels for the event can expect a huge boost during the week of the event with all participating teams traveling from across all regions of North America. All Formula 1 Powerboat Teams from all classes will require multiple rooms to lodge their drivers, crews and families. In addition to the teams, the S.P.O.R.T. Executives and officials will be on hand. A minimum of three or four days of stay can be expected to be required for all those attending. The Formula 1 Powerboats will also attract fans from outside the local area to attend the event.
RESTAURANT & BARS: As the case with most sporting events, just about all parties involved enjoy their evenings and spare times around town sight-seeing while enjoying dinners and drinks with the crews and families. Local Restaurants and bars get an even bigger boost from their city hosting a major sporting event. Thousands of dollars can be expected to be sent across the local businesses after the conclusion of racing each day. In addition, thousands can be expected to be spent by fans visiting from outside the region along with the local residents during the event.
LOCAL VENDORS: Local vendors displaying on site for the racing event will experience a weekend full of revenue generated from the various retail sales that are sold on site.
BOTTOM LINE: As we have seen, major sporting events bring more to a city than fan excitement. In addition to the thrills of racing action, the Formula 1 Powerboat Racing events routinely funnels hundreds of thousands of dollars – and sometimes millions – into the surrounding area in the form of hotel reservations, bar and restaurant sales, snack and party supplies, and local vendors. Far from being incidental, the location of a major motorsports event can be instrumental. We have enclosed the economic impact reports from similar Formula 1 Powerboat events.