Driving towards change: Race Car Drivers Call for Revenue Share from Race Tracks and Broadcasters

The world of motorsports is no stranger to speed, adrenaline, and high-stakes competition. But behind the wheel and beneath the roar of engines, a growing movement is quietly gaining momentum. Race car drivers, the beating heart of this sport, are increasingly raising their voices to demand a fair share of the revenue generated by race tracks and broadcast companies.

A Shift in the Dynamics

Traditionally, race car drivers have been compensated through sponsorships, team contracts (on occasion), t-shirt sales, and purse money. While these revenue streams remain crucial, there's a growing sense that the equation isn't entirely balanced.

Race tracks have long been central to the motorsports ecosystem. They provide the stage, the infrastructure, and ideally, significant financial gains through ticket sales, concessions, broadcasting rights, and partnerships. In this symbiotic relationship, drivers are the show, yet their slice of the pie has often paled in comparison.

The Driver's Perspective

So, why the push for a more equitable revenue share? It comes down to several key factors:

1. Risk and Investment: Race car drivers put their lives on the line every time they hit the track. They invest heavily in their careers, from training and equipment to the sheer dedication required to reach the professional level. Many feel that this level of commitment should be more directly rewarded.

2. Promotion and Branding: Drivers are often the face of the sport. They invest in building their personal brands, attracting sponsors, and engaging with fans. Their success contributes to the overall popularity of motorsports and the financial success of race tracks.

3. Fairness: At its core, the call for revenue sharing is a call for fairness. It's about recognizing the drivers as essential contributors to the sport's success and ensuring they are compensated accordingly.

Inroads and Challenges

One of the primary challenges is the lack of a standardized model for revenue sharing in motorsports. Unlike other sports, where players' associations negotiate on behalf of athletes, motorsports lacks a centralized governing body that represents drivers' interests.

Is there enough revenue to share?

It's no secret that operating a race track is difficult and expensive. With the growing rate of race tracks ceasing operation in America, is the margin of revenue sufficient to request a cut towards the drivers and race teams that make the event happen? It likely varies track to track, but it's hard to believe that an increase in attendance wouldn't open up the possibility for a revenue share towards the parties that made it happen.

Audience growth potential

If race tracks adopted Brian Brown's suggestion, would it be fruitful for them as well?

Possibly, yes.

It really comes down to audience growth potential. If drivers and race teams are incentivized financially to drive more fans to the race track, you would almost certainly see an increase in online participation from drivers and teams to get more fans to the facility. If drivers and teams could render a quantifiable increase in attendance through their social media and marketing, and the race tracks took a 5-10% haircut on each ticket sale through these means, it could improve overall revenue for the race track.

The catch

The inverse of this is of course: What if this initiative drives little new attendance, but a sizable portion of existing fans, that will show up no matter what, claim they're attending for a specific driver? Race tracks would then take that percentage hit with little to no gain. Also, tracking this type of initiative is a notably difficult logistical issue in itself, particularly with at-venue ticket sales; but not necessarily impossible.

The Road Ahead

The conversation around revenue sharing in motorsports is undeniably gaining traction. As more drivers speak out and share their experiences, the pressure on race tracks and governing bodies to address this issue is growing.

For the motorsports industry to thrive, it must recognize the value of its greatest assets - the drivers. A more equitable revenue-sharing model could not only reward the athletes who put their lives on the line but also fuel greater enthusiasm and engagement among fans.

Is there more that broadcast companies can do for racers?

The short answer is yes.

That isn't to say they haven't provided monumental value to the industry, just that there's more that can be done. Broadcast companies have driven grassroots motorsports in America to new heights in recent years, putting up millions of dollars in purse money, paying race tracks and sanctioning bodies for broadcasting rights, and spotlighting up-and-coming drivers in the sport. What more could they do?

The Power of Broadcast Data

Broadcast data encompasses a wide range of information captured during motorsports events. This includes not only the race results but also a myriad of metrics like audience viewership, viewer demographics and social media engagement. This wealth of data can be a game-changer in the pursuit of sponsorships for race car teams and drivers.

1. Understanding the Audience

Sponsors want to know that their investment will reach the right audience. Broadcast data goes beyond the track, offering insights into the demographics and preferences of viewers. This information helps teams and drivers tailor their sponsorship proposals to align with a sponsor's target audience.

For instance, if the data reveals a significant viewership among 35-55 year old males in the middle states, a company that targets such an audience may be more inclined to invest. This alignment of audience and brand can be a compelling selling point.

3. Enhancing Social Media Engagement

In today's digital age, social media is a powerful tool for engaging fans and attracting sponsors. Broadcast data includes social media metrics, such as engagement rates, reach, and impressions. Teams and drivers can use this data to demonstrate their online influence and fan engagement.

Sponsors are often looking for partners who can amplify their brand message through social media. High social media engagement, supported by broadcast data, can make a team or driver an attractive proposition.

4. Measuring Return on Investment (ROI)

Sponsors want to see a return on their investment. Broadcast data can track the exposure and visibility a sponsor receives during races. Metrics like on-screen time, logo visibility, and mentions can provide quantitative evidence of the value sponsors gain.

By analyzing this data and presenting it to sponsors, teams and drivers can showcase the real impact of the partnership, making it easier to retain sponsors for the long haul.

Conclusion

What can drivers and teams do right now?

If you race in events that are often broadcasted, try reaching out to the broadcast company to become an affiliate. They can offer a sign-up code that returns a percentage revenue back to you for each subscription rendered by your fans.

You can also reach out to your race tracks, sanctioning bodies, and relevant broadcast companies to see what data they can offer you. You never know what information is available until you really dig for it. Also, stay vocal on social media, nothing changes if everyone keeps quiet about the topic.