Crypto News: Money, power, car racing

Hi there! It's me, Hannah Elliott, your favorite automotive reporter here at Bloomberg Pursuits. Let's talk about the most exciting sport right now in America: Formula One.

This is the first year there will be three, count 'em three, F1 Grand Prix races on US soil. There's the Austin GP in October and the Las Vegas GP in November, and coming at us faster than 2022 champion Max Verstappen: the Formula 1 Crypto.com Miami Grand Prix weekend May 5–7.

That's the most F1 races to be held in any single country this year.

I won't bore you with all the details of why, since the 1950s, F1 tried and failed to hold a bonafide Grand Prix on US soil in places like California, Michigan and New York. Zoning, money, personality conflicts, politics, scheduling—there have been a lot of… issues. (Formula E, an electric version of F1, has barely fared better.)

The F1 Grand Prix of USA at Circuit of the Americas. The race in Austin was the first one on US shores in years. Photographer: Chris Graythen/Getty Images North America

Nor will I list all the reasons why F1 has long failed to capture the imagination of American sports fans in general.

Until recently the patchy TV coverage required low levels of neurotic obsession to follow, and there hasn't been a star American driver—or any American driver to podium—since Mario Andretti in the 1970s, which doesn't exactly help cultivate and energize fans. (Alexander Rossi was the closest we came in a while; he was training to enter F1 in 2015.)

But then, Miami happened. Photographer: Illustration: Viktor Hachmang

I'll just say this: The tide has changed.

Things started to coalesce in 2017, when billionaire John Malone's Liberty Media Corp. acquired F1 in a $4.4 billion deal and from there modernized the series. It hired the savvy and young Stefano Dominicali, who had run Ferrari's F1 team and later served as chief executive of Lamborghini, to operate as president and CEO.

It made race weekends more TV- and family-friendly, treating each Grand Prix like the Super Bowl, with famous entertainers, pyrotechnics, opulent parties and never-ending food and drink for those who could pay.

And pay they did—$3,000 a head—to party with Lebron James, Wayne Boich, Wyclef Jean and Dwyane Wade at Carbone Beach, back again in Miami. Photographer: John Parra/Getty Images North America

It allowed and promoted Netflix's Formula 1: Drive to Survive, a gossipy docuseries that turned F1 drivers like Verstappen, Lando Norris and Daniel Ricciardo into heroes, villains and everything in between. "Kardashians on wheels," is how Red Bull Team Principal Christian Horner described it to Bloomberg TV. (So wildly popular, Netflix hired the creators to do it again with golf and soon tennis.)

Average US viewership went up 56% in 2021 compared with the 2020 season. In 2022, F1 saw an average of more than a million viewers per race, according to data from Racer, up 28% over 2021.

Liberty Media has worked hard to modernize F1 in America, attracting top stars and talent to attend and perform at races. Yep, that's Brad Pitt at Austin last October. Photographer: Chris Graythen/Getty Images North America

The plan to revitalize Formula One worked so well that earlier this year Saudi Arabia's sovereign wealth fund tried to buy it for more than $20 billion—a logical deal considering the Middle East region will host four races this year. Saudi Aramco, the state-owned oil producer, also has a massive sponsorship deal.

All told, Liberty's F1 business has more than doubled in the past four years, giving it a market value of roughly $15.2 billion, according to Bloomberg data.

The first running of the Las Vegas Grand Prix will be Nov. 19. Photographer: Dan Istitene - Formula 1/Formula 1

So there's no way F1 organizers are going to ease their foot off the gas in Miami. Last year it brought an estimated $350 million in new spending to the city. Count on $5,000 passes for grandstand seats, $800,000 restaurant buy-outs, and $35,000 tables at Magic City's wildest clubs. (And that's just a taste of the action.)

Here's my prediction: All of that will be just a warm-up for the race in Vegas, a spectacle that will elevate F1 in the US to unparalleled heights. I can't wait to go watch.

Connect with me on Twitter and Instagram

With F1, Las Vegas Gears Up to Be the New Car Capital of America

With an upcoming Formula 1 race, a new elite car show, and a major aftermarket convention backed by big money, Sin City is roaring for attention from auto lovers.

Schumacher's $9.5 Million F1 Ferrari Is Tip of Valuable Car Market

Vintage race cars have become an extremely niche obsession for deep-pocketed collectors — who then race them.

F1 Want Women in the Cockpit for First Time Since 1976

With its new academy, the racing league is inviting women to train for the grand prix.

Formula One Miami Brings Racing, Legal Trouble, and $100,000 Tables at Clubs

Miami's first F1 race has faced strong resistance, but now luxury brands are going big.

How to Attend a Formula 1 Race Like a Pro

It doesn't have to cost a fortune and is a lot easier than you think.

Spring means the return of classic car auctions, the perfect convergence of money, power, beauty and status, often set on verdant golf courses at ritzy hotels.

Recent sales in Scottsdale, Arizona, and Amelia Island, Florida, set the tone for the biggest event of them all in August, Monterey Car Week and its associated auctions in Carmel, California.

This is the universe where multimillion-dollar Ferraris, Mercedes-Benzes and Porsches are sold to the highest bidders, and where a little known midwestern insurance company called Hagerty is trying to make a name for itself—as a lifestyle brand.

Collectible Lamborghinis at Amelia Island. Photographer: Sergio Fernandez for Bloomberg Businessweek

Over the past two years, the Traverse City, Michigan-based company has purchased a plethora of car shows, rallies, storage spaces and an auction house in an effort to corner the classic car market.

As you may imagine in a close-knit community with very wealthy participants, there are plenty of conflicted opinions. Some insiders welcome Hagerty's modernizing changes. Others criticize a coming monoculture in the charmingly quirky world of classic cars. Throw in allegations of bullying, conflicts of interest and a concerning amount of control of private customer data and you've got a rousing business story—enough for me to fill eight pages of Bloomberg Businessweek.

And it's still unfolding: Hagerty went public last year and has undergone two rounds of major layoffs since, the latest happening April 12, where 83 employees, or 4% of its workforce, including at least one 16-year veteran of the company, lost their jobs. (Hagerty had previously laid off 103 employees Dec. 1, 2022.)

It maintains a strong hold on the insurance side of the business, which still supplies 90% of its annual revenue. As increasing numbers of enthusiasts discover the joys of owning a vintage car, I expect this to be a story that plays out for years to come.

Why Classic Cars in Crazy Colors Are Crushing It at Auction

Hodinkee's Ben Clymer Restored a 1968 Ferrari in Rome During Covid

Insuring That $142 Million Mercedes Is Neither Cheap Nor Easy

Blue Chip Classic Car Prices Soften at Amelia Island Auctions

What a Bear Market and Strong Dollar Mean for Car Collectors

How a Midwestern Insurance Salesman Cornered the Classic Car Market

Succession, obviously. Also, David Coggins' newsletter, The Contender, which addresses everything the civilized adult should know: dressing, dining, traveling, creating and recreation.

I also love Lauren Sherman's new weekly reports for Puck, called Line Sheet, in which she dissects the business side of the fashion industry and all of its power players. Alexandra Codinha is another favorite for writing about culture, style, art and adventure—she writes her newsletter, Here We Go, with a lovely New Yorker-in-LA perspective.

Ann Peebles has been my favorite soundtrack lately in the morning. She's lesser known than Big Mama Thornton or Aretha Franklin but she has major chops. That catchy hook in Missy Elliott's "The Rain (Supa Dupa Fly)"—the "I can't stand the rain" bit—came from Peebles' song of the same name. Tina Turner also recorded it.

Then-Prince Charles and Lady Susan Hussey attend Royal Ascot last June. Americans are actually set to spend more than Brits at UK hotels during the coronation in May. Photographer: Max Mumby/Indigo/Getty Images Europe

Finally, with all the buzz about Charles's upcoming coronation, I just finished reading Lady Ann Glenconner's well-written Lady in Waiting, which is probably the closest first-hand account ever told of the lives and loves of Queen Elizabeth II and Princess Margaret, and their friends and family.

Glenconner writes with humility, wit, insightful detail and classy restraint about life in and among the British aristocracy. It's a fascinating world that seems extinct today.

Keep that curiosity coming on any topic via our question line (AskPursuits@bloomberg.net) or shoot us a DM on Instagram.

Talk about realistic expectations for going to F1 Miami instead of this dumb expensive sh-t.

Sure thing, @ericmintzer. F1 races are loud, hot (or cold, or rainy, depending on which country you're in at the moment) and confusing to watch if you're not on a prominent corner or have a view of the finish line. You've got to really love it—or be really curious—to be there.

Watching at home on TV is often a far better experience than actually being there, since you can watch replays, close-ups and listen to commentators to learn the minutia of the rules of racing.

Formula 1 race like a pro doesn't have to cost a fortune and is a lot easier than you think. Photographer: JEWEL SAMAD/AFP

F1 tracks are logistical nightmares, since, like airports, they are almost never located close to nice things such as decent hotels, good restaurants, museums, shops and cultural pursuits. (I've been going to them since 2013, and every time I go, I'm physically exhausted and emotionally spent by the time I get home.)

Parking and transportation are challenges for all except those who have the best, most expensive parking passes, VIP access to back-door entries—or helicopters.

Access was one of the biggest complaints I heard about the Miami race. It was too difficult to get from one area of the track to another, and some fans felt trapped in their section. So bring earplugs, a hat, sunglasses and sunscreen, and be prepared to walk a fair way to get to your seats. Save money by bringing your own plastic bottles of water and a packed lunch.

Niki Lauda driving at the F1 Monaco GP in Monte Carlo in 1987. Monaco is arguablythe easiest race to attend from a spectator perspective. Stock/https://www.alamy.com

You might be surprised to hear that despite its glamorous reputation, the Monaco Grand Prix is actually one of the most watchable, accessible races for spectators of all ilk, since it's run through the streets of the principality.

That means you can watch the race from almost anywhere, perching yourself on a balcony or a hill or a storefront, and you can see the pit garages and drivers from many vantage points. A few years back I wrote a guide to it; check it out.

Is the Paddock Pass worth it?

Yes. (See above, @gus.rgb.)

Is F1 growth in America coming at the expense of Indy and NASCAR?

The numbers indicate not, @sjvandus. According to Racer, which compiles viewership data, the 2022 Indycar season averaged a record total audience including streaming viewers of 1.3 million viewers across NBC, USA Network, Peacock and NBC Sports digital platforms. That is up from 1.24 million in 2021.

NASCAR averaged 3.03 million viewers across FOX, FS1, NBC and USA Network in 2022, up 2% from last year's 3 million, according to SportsMediaWatch. The year-over-year increase grows to 4% if you include the preseason exhibition race held at the Los Angeles Coliseum.

A rising tide lifts all ships, as the proverb goes.

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