Abiteboul: The switch to Canal+ has killed F1 in France"

Television audiences are declining sharply worldwide, reaching 200 million fewer viewers in just seven years.

One of the main reasons is that F1 has now shifted in most countries to pay television instead of free channels. Cyril Abiteboul, the director of Renault Sport F1, uses the French example to show how such a change in broadcasting strategy has an impact on the French manufacturer, as he explains to the German newspaper Auto Motor und Sport: «The switch from TF1 to the pay-TV channel Canal Plus has killed interest in F1. We are a French manufacturer. It is clear that we primarily think of French sponsors. But we are told: “Formula 1 no longer exists in France.” It is now impossible to bring a French company into F1. It’s a vicious circle.»

If Bernie Ecclestone has decided to turn to these new broadcasters, it’s because they are willing to pay more for broadcasting rights than their free competitors, as they need to offer content justifying the subscription fee. But this is a short-term strategy: Bernie would no longer be obliged to sell television rights to pay-TV. He is currently forced to do so in order to increase the prize pool for the teams. This makes them happy in the short term, but not in the long term. A cost reduction could completely change the economic model of Formula 1. At present, we are trapped into allowing the teams’ share to be larger. This can only be a short-term income. But because of this, Formula 1’s long-term value will be damaged.

For him, the key lies in reducing costs since teams now find themselves in a situation where they invest more and more but are visible to fewer and fewer people: « In short, it is essential to reduce costs. Otherwise, Formula 1 will disappear. It’s not about whether Renault can afford it. We will be able to compete with the big teams. An automobile manufacturer can afford a Formula 1 at 200 or 300 million per year. But it’s a question of return on investment. We are investing more and more, and fewer and fewer people can see our sport. It makes no sense. We need to make Formula 1 a popular sport again. »

According to Cyril Abiteboul, team budgets should range between 100 and 150 million euros, which would have the merit of enabling greater competition between different teams: « One should be able to be competitive with 100 million euros. The biggest teams should not spend more than 150 million euros. The show would be better, in my opinion, which would allow us to attract more sponsors. »

In order to limit costs, the director of the French team believes there are two possibilities: either impose restrictions on cars with standardized parts or on what is used to build the car (personnel, size of simulators, and test benches). Cyril Abiteboul is well aware of the difficulties in implementing such a system but deems it necessary: « I’m not saying we should monitor everything. There is no perfect system. What I mean is that we need a model that is more sustainable than the current one. »

If we are used to this kind of statements from smaller teams, it is much less common for managers of larger teams. A sign that times are changing…

With the participation of www.racingbusiness.fr