WEBVTT - Down to Business

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<v Speaker 1>I will be plugging in a back heating pad.

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<v Speaker 2>It's nassy.

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<v Speaker 1>I'm not trying to show off or anything.

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<v Speaker 2>You can't prepare.

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<v Speaker 1>My friend told me this weekend that the lower left

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<v Speaker 1>part is where your emotional stress is. So I don't

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<v Speaker 1>only feel like I'm like emotionally stress too much. All right,

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<v Speaker 1>Tony Michael, I want my name on an F one car. Okay,

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<v Speaker 1>And I know you're the person to talk to about this,

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<v Speaker 1>and actually, let me rephrase. I want to put my

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<v Speaker 1>face and my name because what good is it if

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<v Speaker 1>you don't see the face? You know this? How much

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<v Speaker 1>would that cost me? How long would it be on there?

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<v Speaker 1>Can I just do a race if it's cost effective.

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<v Speaker 1>I'm not picky. It doesn't have to be front and

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<v Speaker 1>center on the car. It could be on one of

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<v Speaker 1>the wheel hubs or the little wing, or even a

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<v Speaker 1>decal on the driver's helmet. Doesn't have to be Ferrari,

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<v Speaker 1>could even be hass I love that.

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<v Speaker 2>In the same sentence, he said, I'm not picky, but

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<v Speaker 2>I just want my face go.

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<v Speaker 1>Yeah, And if we happen to mention my TikTok handle,

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<v Speaker 1>Michael Costa underscore that's not gonna hurt anybody. Okay, I'm

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<v Speaker 1>not as happy as I can be in my life,

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<v Speaker 1>and once this happens, that will fill the void. Help me?

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<v Speaker 1>Can you help me with this.

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<v Speaker 2>Theoretically? Yes?

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<v Speaker 1>Great, I'm all about theory for my heart podcast one

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<v Speaker 1>on one Studios and Sports Illustrated Studios.

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<v Speaker 3>This is choosing sides one.

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<v Speaker 1>Wow, Tony, what is the business model of F one?

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<v Speaker 1>Is it even right to call it a business? If

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<v Speaker 1>it's a business, then somebody has to own it. In basketball,

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<v Speaker 1>nobody owns the NBA, per se. I mean, I think

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<v Speaker 1>it's individual teams are privately owned and a franchise is

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<v Speaker 1>collectively owned by all of them. I do remember season one,

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<v Speaker 1>Lily told me about this one guy Bernie, former Formula

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<v Speaker 1>one boss Bernie Echoson, has been given a seventeen month

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<v Speaker 1>suspended jail sentence after pleading guilty to fraud. Who sold

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<v Speaker 1>F one? What does that even mean? How can you

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<v Speaker 1>sell it in the first place? I can't sell basketball? Right?

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<v Speaker 2>No? Yes, these are some great questions, and I think

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<v Speaker 2>this is where we're going to get into a lot

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<v Speaker 2>of fun. Let's take these questions one by one, and

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<v Speaker 2>today let's dive into Formula ones. Weird and quirky and

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<v Speaker 2>at times feeling like a sport that's lost. Maybe it's

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<v Speaker 2>moral compass, but we're going to look at the business

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<v Speaker 2>model of Formula one and all the different layers into it.

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<v Speaker 1>I should understand that because my moral compass is longer.

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<v Speaker 1>The following is disturbing.

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<v Speaker 3>Footage from Michael Costa's comedic archive.

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<v Speaker 1>Someone asked you for a favor, Say it with yes,

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<v Speaker 1>with a smile on your face, and then absolutely botch

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<v Speaker 1>the favor. Hey can you pick my kids up at daycare?

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<v Speaker 1>I would love to do that for you. And then

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<v Speaker 1>you just don't ever pick those kids up. They'll never

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<v Speaker 1>ask you again.

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<v Speaker 2>There she is, Hello, Hello, lovely, how are you doing?

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<v Speaker 2>I am good to help us with some insights into

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<v Speaker 2>the business model of F one. I've asked Elizabeth Blackstock

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<v Speaker 2>to join us.

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<v Speaker 1>Hi, Elizabeth, how would you describe yourself?

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<v Speaker 2>What's your job? And how does F one fit into

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<v Speaker 2>your wonderful world?

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<v Speaker 4>It's such a big question. F one is everything I think.

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<v Speaker 2>I love that.

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<v Speaker 4>The motorsport journalist and a historian.

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<v Speaker 2>She's also the primary American contributor to Planet f one.

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<v Speaker 2>She's written books about F one, and she's even starting

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<v Speaker 2>her very own podcast, Deadly Passions and Terrible Joys, all

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<v Speaker 2>about the weird scandals and dramas and the chronicles of motorsports.

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<v Speaker 1>There's no shortage of those.

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<v Speaker 2>And Elizabeth is a longtime Formula one fan herself.

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<v Speaker 4>When I think back to twenty fourteen, that was the

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<v Speaker 4>first ever Formula One race, I went to the US

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<v Speaker 4>Grand Prix I was. I was eighteen years old, like

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<v Speaker 4>going having I thinking I'm going to get this out

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<v Speaker 4>of my system, like I'm gonna watch race cars and

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<v Speaker 4>be done. And that did not happen. But I can

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<v Speaker 4>remember being at the track on race ding kind of

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<v Speaker 4>having the run of the place. It was sparse, it

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<v Speaker 4>wasn't super busy, there were no lines for things. There

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<v Speaker 4>were certainly no lines for the women's bathrooms. Suddenly it's

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<v Speaker 4>just this massive explosion where people are aware of what

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<v Speaker 4>this sport is. In the past, i'd like mentioned something

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<v Speaker 4>to a professor like Hey, I'm taking a day off,

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<v Speaker 4>I'm going to race somewhere, and they would have no

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<v Speaker 4>idea what I was talking about. And now, like I

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<v Speaker 4>go outside and even in the small town I live

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<v Speaker 4>in in Texas, there's people with their red bull hats

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<v Speaker 4>on because they're rooting for Sergio Pariz or their Ferrari

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<v Speaker 4>get up. It's just become so huge here in such

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<v Speaker 4>a very short space of time, Americans are getting it,

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<v Speaker 4>which is it's nice.

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<v Speaker 2>How would you explain to a new fan how teams

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<v Speaker 2>make money, how spumses make money. It definitely feels when

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<v Speaker 2>you look got the sport that there's a lot of

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<v Speaker 2>money being thrown at the sport, and there's a lot

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<v Speaker 2>of money being invested in the sport. But how does

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<v Speaker 2>anyone in this industry actually make money at the end

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<v Speaker 2>of the day.

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<v Speaker 4>That is such a good question.

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<v Speaker 2>It's a big question.

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<v Speaker 4>It is it is not easy to make money in

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<v Speaker 4>Formula one, no matter how many millions of dollars you're

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<v Speaker 4>swimming around in it at all times. I think in

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<v Speaker 4>this modern era we've seen a big jump in profitability

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<v Speaker 4>for the sport overall as the company itself. In the past,

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<v Speaker 4>Formula one was just kind of like a way for

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<v Speaker 4>rich drivers to have fun. These were like kind of

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<v Speaker 4>noble gentlemen who had the money in the access to

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<v Speaker 4>get cars.

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<v Speaker 5>You might have to have a few, Bob, you didn't

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<v Speaker 5>have to be super rich.

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<v Speaker 2>This is Matt Bishop, English journalist offer novelist and a

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<v Speaker 2>true fixture of theform paddock.

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<v Speaker 5>You could buy a Maserati two fifty if one of

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<v Speaker 5>the most beautiful full one cars there's ever been. But

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<v Speaker 5>if you were someone like Horace Gould, who wasn't particularly

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<v Speaker 5>quick but had a business, wasn't minted, but was just

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<v Speaker 5>somebody who did quite well and had a bit of

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<v Speaker 5>money and loved motor racing. So he bought a two

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<v Speaker 5>fifty f Maza and he went racing in it, not

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<v Speaker 5>very well, and he didn't have to do all the races.

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<v Speaker 5>He didn't have to take it to Argentina if he

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<v Speaker 5>thought that would be too much of a pain in

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<v Speaker 5>the bum to do that.

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<v Speaker 4>But that wasn't really enough to sustain a massive growth

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<v Speaker 4>of the sport, and especially when smaller manufacturers became interested

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<v Speaker 4>in competing kind of you know these backyard teams that

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<v Speaker 4>had sprung up, especially in England, it was like, oh,

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<v Speaker 4>we can't afford this because we're not independently wealthy. What

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<v Speaker 4>do we do now? And now it's currently profitable because

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<v Speaker 4>of some very aggressive TV deals that were struck by

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<v Speaker 4>Bernie Eckelstown, who is certainly a man.

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<v Speaker 2>We always say like love him. I hate him. He's

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<v Speaker 2>definitely changed the sport.

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<v Speaker 5>When I was at school in the seventies, I was

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<v Speaker 5>the only one who liked Formula one. I loved football

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<v Speaker 5>as well, but my mates only liked football. But they're

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<v Speaker 5>like cricket and rugby and other things snooker, believe it

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<v Speaker 5>or not, but not Formula one. It was only me

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<v Speaker 5>and you couldn't find it written about on the newspapers,

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<v Speaker 5>and it wasn't on the telly. And it was Bernie,

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<v Speaker 5>Bernie Eclestone who realized that really Formula one could be

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<v Speaker 5>taken to the world via two industries now which you

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<v Speaker 5>can't really monetize in the same way, tobacco and television.

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<v Speaker 4>I think honestly, most of Eclestone's career was this kind

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<v Speaker 4>of slow build that was developing profitability for Formula one.

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<v Speaker 4>So he tried his hand at racing when he was young,

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<v Speaker 4>realized he wasn't good at it, and then was like,

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<v Speaker 4>actually I can wheel and deal pretty well. Let me

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<v Speaker 4>do that. I don't know if anyone if you've ever

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<v Speaker 4>seen this photo that goes around occasionally in the late

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<v Speaker 4>nineteen sixties. It's the Austrian driver yachin rent and the

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<v Speaker 4>side of his helmet is the phrase this space for

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<v Speaker 4>let That's because he was managed by Bernie Eclestone, who

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<v Speaker 4>was one of the very prototypical examples of trying to

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<v Speaker 4>seek sponsorship in a sport that previously was just country

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<v Speaker 4>colors and national pride and you know, manufacturer dominance. It

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<v Speaker 4>wasn't about companies, it wasn't about sponsorship, and that was

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<v Speaker 4>the first key that kind of changed the name of

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<v Speaker 4>the game. Lotus then took Yok and Rin Don as

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<v Speaker 4>a driver, got their first massive sponsorship, changed the.

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<v Speaker 1>Name of the game. I'm curious what was that first

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<v Speaker 1>sponsorship deal they got, Like, who is it with?

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<v Speaker 4>Lotus got the Gold Leaf Embassy sponsorship. The tobacco company

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<v Speaker 4>really made everyone upset because they thought it was cheapening

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<v Speaker 4>the sport by you know, promoting a tobacco brand and

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<v Speaker 4>advice on their cars, instead of it being this noble

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<v Speaker 4>pursuit that formula one supposedly should have.

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<v Speaker 1>Been remember about.

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<v Speaker 2>Well, well, well the table today one other well we

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<v Speaker 2>can't really call this on a fun fact, but it's

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<v Speaker 2>actually very sad fact.

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<v Speaker 5>The normal continuum of human events as a beginning and

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<v Speaker 5>an end.

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<v Speaker 6>Jochen Rint is dead.

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<v Speaker 2>Soon after securing that first ever F one sponsorship deal.

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<v Speaker 2>Johann Hint actually crashed and died in the practice session

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<v Speaker 2>in the Monsa Circuit in Italy.

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<v Speaker 1>Jeez.

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<v Speaker 2>His good friend and biggest rival, Sir Jackie Stewart, a

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<v Speaker 2>man who we will definitely come back to in several

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<v Speaker 2>times during this season, was, as you can imagine, absolutely heartbroken.

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<v Speaker 7>Yochen was perhaps my greatest friend and motor racing I

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<v Speaker 7>perhaps feel this sadder at this.

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<v Speaker 6>Moment than either we were done before any race.

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<v Speaker 2>Ryan was actually leading the Driver's Championship when he was killed,

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<v Speaker 2>and this was towards the end of the season, so

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<v Speaker 2>even though he passed away before the season concluded, he

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<v Speaker 2>actually went on to take the championship. So this makes

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<v Speaker 2>him not only the first driver to secure a spot,

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<v Speaker 2>but also the only driver in Formula One history to

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<v Speaker 2>be posthumously awarded the Formula One Drivers Championship.

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<v Speaker 6>He will have won the world championship.

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<v Speaker 3>The manner of his winning it illustrates the randomness of

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<v Speaker 3>human experience.

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<v Speaker 1>Okay, dark interlude here back, sorry to do this, but

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<v Speaker 1>back to the business model. So Lotus gets that first

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<v Speaker 1>sponsorship from a tobacco company. What's next?

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<v Speaker 4>I think the next step. Honestly, Bernie Echostone went bigger.

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<v Speaker 4>He bought the Brave and Formula one team, invested so

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<v Speaker 4>much into making that a world championship team, but in

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<v Speaker 4>the meantime was also establishing something called the Formula One

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<v Speaker 4>Constructors Association, which is essentially what the Formula One group became,

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<v Speaker 4>and it was through that association that he did battle

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<v Speaker 4>with the FIA to establish these incredible forms of revenue

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<v Speaker 4>sharing for the teams.

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<v Speaker 2>Back in the day, when we had qualifying session, it

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<v Speaker 2>wasn't actually just qualifying to know if you were going

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<v Speaker 2>to start P six, P seven, p twenty on the grid.

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<v Speaker 2>It was actually to know if you could qualify and

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<v Speaker 2>were fast enough to actually go racing on Sunday because

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<v Speaker 2>we had a lot more teams and a lot more

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<v Speaker 2>drivers because it didn't cost as much as it does today.

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<v Speaker 2>And the other thing that you would happen is people

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<v Speaker 2>would just be like, I'm not going to show up

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<v Speaker 2>on Sunday. I'm good, I've got you know, kids kids'

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<v Speaker 2>birthday party, i don't need to come, which you can't

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<v Speaker 2>actually make money guaranteeing a race if you can't guarantee

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<v Speaker 2>that the teams actually show up and the drivers show up.

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<v Speaker 2>So that was the essential idea behind the Concord Agreement

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<v Speaker 2>which they've signed again I think till twenty twenty six,

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<v Speaker 2>which guarantees that these ten teams that we have on

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<v Speaker 2>the grid are going to show up, they have enough

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<v Speaker 2>money to keep paying to drive, and that the drivers

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<v Speaker 2>are going to show up as well.

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<v Speaker 1>It seems like a no brainer show up to work,

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<v Speaker 1>show up to work. But as someone who just lived

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<v Speaker 1>through six months of a writer strike, if people don't

0:11:52.040 --> 0:11:54.079
<v Speaker 1>get paid they don't show up to work, great, you

0:11:54.160 --> 0:11:55.600
<v Speaker 1>know what I mean. You got to show up, and

0:11:55.679 --> 0:11:58.400
<v Speaker 1>so there needs to be rules in place to make

0:11:58.440 --> 0:11:59.719
<v Speaker 1>sure work happens.

0:11:59.440 --> 0:12:03.280
<v Speaker 2>Exactly, Bernie, there you go. Not something you'll hear often

0:12:03.360 --> 0:12:03.880
<v Speaker 2>these things.

0:12:04.280 --> 0:12:06.360
<v Speaker 4>It was a genie's move. I think that was really

0:12:06.400 --> 0:12:09.880
<v Speaker 4>the big like kind of trajectory that time period from

0:12:09.880 --> 0:12:12.600
<v Speaker 4>the late nineteen sixties into the eighties where we really

0:12:12.679 --> 0:12:15.720
<v Speaker 4>kind of started to see this massive influx of cash

0:12:15.760 --> 0:12:21.920
<v Speaker 4>and having this standardization and regular income becoming prioritized because

0:12:21.960 --> 0:12:24.840
<v Speaker 4>no one was just independently rich anymore. He wanted that

0:12:24.920 --> 0:12:27.560
<v Speaker 4>money to actually develop a team.

0:12:27.840 --> 0:12:31.080
<v Speaker 2>Okay, hold on, before we move forward, I think we

0:12:31.120 --> 0:12:33.480
<v Speaker 2>need to take a little step back and explain the

0:12:33.520 --> 0:12:36.920
<v Speaker 2>trifecta of the sport that I think is really important

0:12:36.920 --> 0:12:41.720
<v Speaker 2>to start after the three biggest, most influential bodies the

0:12:42.160 --> 0:12:46.440
<v Speaker 2>interplay with each other, which would be the FIA, Liberty Media,

0:12:46.840 --> 0:12:51.439
<v Speaker 2>and FOAM, and they each play very separate but equally

0:12:51.480 --> 0:12:58.120
<v Speaker 2>important roles within the ecosystem of Formula one. FIA stands fortomobile,

0:12:58.480 --> 0:12:59.439
<v Speaker 2>which is think.

0:12:59.480 --> 0:13:01.760
<v Speaker 1>I'll say it, and now let me ask it again.

0:13:01.760 --> 0:13:02.600
<v Speaker 1>What does it stand for?

0:13:03.280 --> 0:13:08.599
<v Speaker 2>Federation Inational of Autos as basically.

0:13:08.360 --> 0:13:13.280
<v Speaker 1>Wow, of all the autos of Federation Liberty Media. That

0:13:13.440 --> 0:13:17.360
<v Speaker 1>sounds very broad, very general. That sounds like the name

0:13:17.360 --> 0:13:19.720
<v Speaker 1>of a media company in a horror film.

0:13:19.800 --> 0:13:20.720
<v Speaker 2>Yeah, if you want to.

0:13:20.840 --> 0:13:23.880
<v Speaker 1>In FOAM, which is fear of missing out, fear of.

0:13:23.760 --> 0:13:29.680
<v Speaker 2>Missing out, that's what standsible. It's Formula one management, so basically.

0:13:29.679 --> 0:13:31.080
<v Speaker 1>A lot of governing bodies.

0:13:31.360 --> 0:13:33.880
<v Speaker 2>So let's start with the FI.

0:13:34.160 --> 0:13:40.280
<v Speaker 4>The FIA is the kind of international nonprofit organization that

0:13:40.480 --> 0:13:43.080
<v Speaker 4>sanctions Formula one race is to make sure that they

0:13:43.120 --> 0:13:45.480
<v Speaker 4>are all run in the same rule set and to

0:13:45.520 --> 0:13:48.760
<v Speaker 4>make sure that every team is operating in the same way.

0:13:49.000 --> 0:13:52.120
<v Speaker 1>You don't hear nonprofit a lot no in f one,

0:13:52.600 --> 0:13:57.240
<v Speaker 1>in fact, that seems to violate everything the foundation of

0:13:57.360 --> 0:13:58.520
<v Speaker 1>F one. Yes, yeah, interesting.

0:13:58.520 --> 0:13:59.960
<v Speaker 8>I just wanted to pull up this quote I found

0:14:00.080 --> 0:14:03.000
<v Speaker 8>online from this official F one document.

0:14:03.160 --> 0:14:03.840
<v Speaker 1>Okay, yep.

0:14:04.040 --> 0:14:08.360
<v Speaker 8>F one mission statement to leave a legacy of positive

0:14:08.480 --> 0:14:15.280
<v Speaker 8>change wherever we race, enriching local communities and economies and

0:14:16.000 --> 0:14:17.920
<v Speaker 8>supporting the natural environment.

0:14:20.400 --> 0:14:22.120
<v Speaker 1>I think that's lovely inspiring.

0:14:22.480 --> 0:14:24.960
<v Speaker 8>So yeah, this is this is not about money, Michael.

0:14:25.920 --> 0:14:27.920
<v Speaker 8>It's about making the world a better place.

0:14:28.480 --> 0:14:30.960
<v Speaker 1>One of my favorite parts of F one is how

0:14:31.360 --> 0:14:36.120
<v Speaker 1>profit and capitalistic it all feels. It's okay, like we're branding,

0:14:36.120 --> 0:14:40.120
<v Speaker 1>We're going, We're fast. It's not exactly exactly.

0:14:40.200 --> 0:14:42.840
<v Speaker 4>It's an outside source. It doesn't just sanction F one.

0:14:43.040 --> 0:14:46.240
<v Speaker 4>It sanctions i think, over four hundred different series around

0:14:46.280 --> 0:14:50.640
<v Speaker 4>the world to greater or lesser levels of importance than

0:14:50.760 --> 0:14:51.080
<v Speaker 4>F one.

0:14:51.200 --> 0:14:54.360
<v Speaker 2>You will always hear the fans getting really angry with

0:14:54.400 --> 0:14:58.040
<v Speaker 2>the FIA because they're constantly changing the rules. The way

0:14:58.040 --> 0:15:01.800
<v Speaker 2>they regulate is constantly shifting. The fans are always unhappy

0:15:01.840 --> 0:15:04.320
<v Speaker 2>with the fines that they give the drivers.

0:15:04.440 --> 0:15:07.480
<v Speaker 6>Can we get your reaction to the reprimand and the

0:15:07.480 --> 0:15:10.200
<v Speaker 6>fine that you received from the stewarts this morning?

0:15:10.400 --> 0:15:16.040
<v Speaker 2>You might have remember hearing Max Verstappen jokingly saying once

0:15:16.040 --> 0:15:18.440
<v Speaker 2>he got a fine, Well, I hope the FIA enjoys

0:15:18.440 --> 0:15:19.720
<v Speaker 2>a nice dinner and drinks on me.

0:15:19.880 --> 0:15:23.040
<v Speaker 5>Hope they have a nice dinner and a lot of wine.

0:15:24.320 --> 0:15:27.280
<v Speaker 2>So the FI is heavily responsible for drafting, regulating and

0:15:27.440 --> 0:15:29.720
<v Speaker 2>enforcing the rules and the regulations. That's why the fans

0:15:29.760 --> 0:15:31.560
<v Speaker 2>always get angry on them. But their whole thing is

0:15:31.560 --> 0:15:34.080
<v Speaker 2>also safety and security. So when you look at how

0:15:34.120 --> 0:15:35.960
<v Speaker 2>the sport has evolved over the years in terms of

0:15:36.000 --> 0:15:38.840
<v Speaker 2>safety and security for the drivers, the FIA is at

0:15:38.840 --> 0:15:40.000
<v Speaker 2>the pinnacle of pushing for that.

0:15:40.160 --> 0:15:42.840
<v Speaker 1>People can die in the sport. Yes, that changes everything.

0:15:43.040 --> 0:15:46.480
<v Speaker 2>It changes everything. So Jackie Stewart was one of the

0:15:46.560 --> 0:15:49.480
<v Speaker 2>drivers that has often pushed for that. He also pushed

0:15:49.480 --> 0:15:52.280
<v Speaker 2>for a union of drivers, which is important to note

0:15:52.360 --> 0:15:55.400
<v Speaker 2>in the evolution of Formula one. He still remembers the

0:15:55.480 --> 0:15:57.320
<v Speaker 2>days when he would travel with the sport and he

0:15:57.320 --> 0:16:00.440
<v Speaker 2>would always bring a black Tux with him because you

0:16:00.480 --> 0:16:03.880
<v Speaker 2>never knew whose funerals you would attend, which is bleak

0:16:03.920 --> 0:16:06.440
<v Speaker 2>and I'm delighted to say that that is no longer

0:16:06.440 --> 0:16:08.320
<v Speaker 2>the case these days. It's still a danger.

0:16:08.080 --> 0:16:10.520
<v Speaker 1>Sport also, do you wear tuxedos to a funeral?

0:16:10.680 --> 0:16:14.120
<v Speaker 2>I don't know, Maybe a black suit? Yes, did I

0:16:14.120 --> 0:16:14.760
<v Speaker 2>say tuxedo?

0:16:14.960 --> 0:16:17.400
<v Speaker 1>You said tuxedo. But I don't know if it's like

0:16:17.760 --> 0:16:18.720
<v Speaker 1>in different countries.

0:16:18.720 --> 0:16:20.520
<v Speaker 2>Maybe you want I think you wear a black suit?

0:16:20.640 --> 0:16:20.840
<v Speaker 1>Yeah?

0:16:25.720 --> 0:16:27.840
<v Speaker 8>Can I ask a bit of a controversial question here?

0:16:27.960 --> 0:16:32.400
<v Speaker 8>It is there like an inverse relationship between how safe

0:16:32.440 --> 0:16:38.440
<v Speaker 8>it is and how interesting the sport is. It's too dark?

0:16:39.000 --> 0:16:41.480
<v Speaker 1>No, it's not too dark. I think it's an excellent question.

0:16:41.800 --> 0:16:43.360
<v Speaker 2>I don't know. I have a weird thing with this.

0:16:43.480 --> 0:16:47.440
<v Speaker 2>So I think as humans we just enjoying people hurting

0:16:47.480 --> 0:16:50.360
<v Speaker 2>themselves is just something that I struggle with. But I

0:16:50.480 --> 0:16:54.080
<v Speaker 2>think the crashes in Formula one are so for lack

0:16:54.120 --> 0:16:56.880
<v Speaker 2>of a better word, explosive and in your face and

0:16:57.000 --> 0:16:58.800
<v Speaker 2>shocking that it does draw you in.

0:16:59.000 --> 0:17:00.800
<v Speaker 1>It's an integral part of the sport. Come on, you

0:17:00.840 --> 0:17:03.440
<v Speaker 1>can't deny that, Okay. I think this is a good

0:17:03.440 --> 0:17:06.880
<v Speaker 1>time to take a short break. Listeners. You can use

0:17:06.880 --> 0:17:09.880
<v Speaker 1>this as an opportunity, as companies are pushing their products

0:17:09.880 --> 0:17:13.080
<v Speaker 1>on you, to contemplate your own mortality and appreciate the

0:17:13.080 --> 0:17:15.480
<v Speaker 1>fleeting miracle that is life. That's what I do typically

0:17:15.560 --> 0:17:16.440
<v Speaker 1>during commercial breaks.

0:17:16.440 --> 0:17:19.560
<v Speaker 8>Think you've just summed up F one in a sentence there, Michael,

0:17:20.800 --> 0:17:21.400
<v Speaker 8>I'm brilliant.

0:17:23.320 --> 0:17:26.800
<v Speaker 2>Okay, we're back, and now let's talk a little bit

0:17:26.800 --> 0:17:27.720
<v Speaker 2>about foam, should we.

0:17:27.800 --> 0:17:29.479
<v Speaker 1>Yeah, because if we don't, I'm going to have foam.

0:17:29.480 --> 0:17:29.560
<v Speaker 9>MO.

0:17:30.720 --> 0:17:32.440
<v Speaker 1>Wasn't sure you guys heard my joke the first time.

0:17:34.080 --> 0:17:38.920
<v Speaker 4>FOM is Formula One Management. Formula One Management is essentially

0:17:39.040 --> 0:17:43.879
<v Speaker 4>the company that distributes those marketing and world feed rights

0:17:44.040 --> 0:17:46.399
<v Speaker 4>for Formula one. So that's the one that kind of

0:17:46.400 --> 0:17:49.280
<v Speaker 4>goes out and sells different aspects of the company to

0:17:49.400 --> 0:17:52.040
<v Speaker 4>people and manages all of the media rights.

0:17:52.119 --> 0:17:55.439
<v Speaker 2>They're also the owner of the name and the rights

0:17:55.440 --> 0:17:58.840
<v Speaker 2>of Formula One. They own the name for Formula one

0:17:58.960 --> 0:18:02.720
<v Speaker 2>and name the right. Their objective is essentially to drive

0:18:02.720 --> 0:18:03.560
<v Speaker 2>commercial success.

0:18:03.640 --> 0:18:05.560
<v Speaker 1>They wanted American audiences.

0:18:05.640 --> 0:18:06.200
<v Speaker 2>They got it.

0:18:06.280 --> 0:18:08.800
<v Speaker 1>They wanted it, and they got it. And maybe you

0:18:08.840 --> 0:18:13.040
<v Speaker 1>don't just mess with unregulated capitalism because here it comes.

0:18:13.080 --> 0:18:14.280
<v Speaker 2>Here it comes.

0:18:13.680 --> 0:18:18.880
<v Speaker 1>Other countries always think they want to dip their toe

0:18:18.880 --> 0:18:22.360
<v Speaker 1>in American capitalism. It is a beast. It is a beast,

0:18:22.560 --> 0:18:23.359
<v Speaker 1>and it's coming for you.

0:18:23.480 --> 0:18:26.080
<v Speaker 2>I'll spit you out when it's done with it. And

0:18:26.119 --> 0:18:27.680
<v Speaker 2>that's where Liberty Media comes in.

0:18:27.840 --> 0:18:33.760
<v Speaker 4>Liberty Media is the American company that purchased essentially the

0:18:33.880 --> 0:18:37.320
<v Speaker 4>FOM and those management rights from Bernie Eclestone, who had

0:18:37.359 --> 0:18:39.360
<v Speaker 4>previously been in charge of that company.

0:18:39.520 --> 0:18:42.480
<v Speaker 1>Every one of my companies has used that leverage to

0:18:42.560 --> 0:18:44.320
<v Speaker 1>boost up equity returns.

0:18:44.560 --> 0:18:47.680
<v Speaker 2>That is John Malone, chairman and largest shareholder of Liberty Media.

0:18:48.119 --> 0:18:51.000
<v Speaker 1>It doesn't mean that that's obeyed strategy, particularly if you've

0:18:51.000 --> 0:18:53.879
<v Speaker 1>been able to lock in long fixed rates. I'd be

0:18:53.920 --> 0:18:58.400
<v Speaker 1>a little freaked out if Viacom CBS owned the NHL.

0:19:00.960 --> 0:19:02.760
<v Speaker 8>I mean, I just want to drive this home to

0:19:03.359 --> 0:19:07.119
<v Speaker 8>all of the American fans. You've just been played and

0:19:07.200 --> 0:19:11.840
<v Speaker 8>manipulated by a corporate American company yet again.

0:19:11.760 --> 0:19:12.320
<v Speaker 2>Yet again.

0:19:13.560 --> 0:19:16.919
<v Speaker 1>You know, YOHI walk outside right now, there's somebody wearing

0:19:17.000 --> 0:19:20.760
<v Speaker 1>a fucking Jack Daniel's hat, or a Dilly Dilly T

0:19:20.880 --> 0:19:24.240
<v Speaker 1>shirt or a Yankees bag. We were all being played

0:19:24.320 --> 0:19:28.119
<v Speaker 1>all the time, understanding you're being played and choosing what

0:19:28.240 --> 0:19:31.320
<v Speaker 1>game you're playing in. I'm okay with that, amen.

0:19:32.800 --> 0:19:35.639
<v Speaker 4>Liberty Media did want to tap into the American market.

0:19:35.800 --> 0:19:39.920
<v Speaker 4>I think it really understood that Formula one was closed

0:19:39.920 --> 0:19:44.040
<v Speaker 4>off in Bernie Eclestone's era. Eclestone had a tight rain

0:19:44.280 --> 0:19:47.040
<v Speaker 4>on all of the ways that Formula One was perceived,

0:19:47.440 --> 0:19:50.480
<v Speaker 4>which included a lot of things, you know, even banning

0:19:50.520 --> 0:19:53.600
<v Speaker 4>the use of social media in the paddock. Liberty Media

0:19:53.680 --> 0:19:56.439
<v Speaker 4>came in and saw that these were very restrictive things

0:19:56.440 --> 0:19:59.240
<v Speaker 4>that were actively hurting the image of the sport because

0:19:59.359 --> 0:20:02.840
<v Speaker 4>drivers couldn't share things, influencers couldn't come to an event

0:20:02.880 --> 0:20:06.120
<v Speaker 4>to share things, Journalists were very limited in the things

0:20:06.119 --> 0:20:08.640
<v Speaker 4>that they were able to say for fear of losing

0:20:08.680 --> 0:20:12.600
<v Speaker 4>their jobs. Liberty Media opened it up to the public

0:20:13.400 --> 0:20:17.320
<v Speaker 4>and was the reason why they got Netflix involved to

0:20:17.359 --> 0:20:21.040
<v Speaker 4>create Drive to Survive, the series that has essentially changed

0:20:21.080 --> 0:20:23.800
<v Speaker 4>the name of the game for Formula One. It opened

0:20:23.880 --> 0:20:26.679
<v Speaker 4>up the personalities and the underworkings of the sport a

0:20:26.680 --> 0:20:29.760
<v Speaker 4>little bit more for people to see, so that you know,

0:20:29.840 --> 0:20:32.080
<v Speaker 4>there's more to connect to than just what happens on

0:20:32.119 --> 0:20:35.560
<v Speaker 4>the track. Watching cars going circles is not always the

0:20:35.600 --> 0:20:38.640
<v Speaker 4>most compelling for people, but I've found that you can

0:20:38.680 --> 0:20:41.760
<v Speaker 4>really get a wider audience involved when you tell them

0:20:41.800 --> 0:20:44.919
<v Speaker 4>the stories of the people driving those cars, and that

0:20:45.119 --> 0:20:47.600
<v Speaker 4>is what Liberty Media did. It just so happened that

0:20:47.640 --> 0:20:51.359
<v Speaker 4>the American audience was ripper and ready to go to

0:20:51.560 --> 0:20:54.280
<v Speaker 4>latch onto that during the COVID nineteen pandemic.

0:20:54.640 --> 0:20:58.520
<v Speaker 1>Let me get this straight. An American media company owns

0:20:59.000 --> 0:21:05.280
<v Speaker 1>F one, but the FIA and the FOAM are other

0:21:05.480 --> 0:21:09.400
<v Speaker 1>governing bodies that really can control things as well.

0:21:09.560 --> 0:21:12.840
<v Speaker 4>Yes, it's a web of wildness all around.

0:21:13.119 --> 0:21:14.639
<v Speaker 1>Why would I expect it to be simple?

0:21:15.080 --> 0:21:17.880
<v Speaker 2>It's not a simple Yeah, no, inform one anyway?

0:21:17.960 --> 0:21:22.439
<v Speaker 1>Yeah, who makes money here? Is it a company? Is

0:21:22.440 --> 0:21:25.199
<v Speaker 1>it the driver? Is it the principle? Is that what

0:21:25.240 --> 0:21:27.480
<v Speaker 1>they call them? And can you make money an F

0:21:27.520 --> 0:21:31.000
<v Speaker 1>one or is it like buying a vineyard? You make

0:21:31.000 --> 0:21:33.919
<v Speaker 1>great wine, but you lose a lot of money and

0:21:33.960 --> 0:21:35.320
<v Speaker 1>you got something cool they show your friends.

0:21:35.400 --> 0:21:36.040
<v Speaker 2>It's a great question.

0:21:36.240 --> 0:21:37.119
<v Speaker 1>I ask great questions.

0:21:37.119 --> 0:21:39.720
<v Speaker 2>I know you do. That's why that's good questions.

0:21:39.920 --> 0:21:43.639
<v Speaker 4>There's this saying in motorsport that it takes two million

0:21:43.680 --> 0:21:48.080
<v Speaker 4>dollars to make a million dollars, So everything you kind

0:21:48.080 --> 0:21:51.399
<v Speaker 4>of put in you almost expect that you're going to

0:21:51.440 --> 0:21:54.560
<v Speaker 4>lose money. It makes sense for like a Mercedes to

0:21:55.000 --> 0:21:57.760
<v Speaker 4>take out a challenge in Formula one to raise their

0:21:57.800 --> 0:22:01.040
<v Speaker 4>cars to be really fast. Because Mercedes sells road cars.

0:22:01.600 --> 0:22:05.439
<v Speaker 4>It looks great for them to have, you know, successful cars,

0:22:05.480 --> 0:22:08.800
<v Speaker 4>it looks great for that. It looks great for them

0:22:08.840 --> 0:22:11.199
<v Speaker 4>to have technology that they can say was developed in

0:22:11.280 --> 0:22:14.280
<v Speaker 4>Formula one. With Red Bull, it makes sense that this

0:22:14.400 --> 0:22:20.080
<v Speaker 4>high octane company that loves adrenaline has something huge in

0:22:20.119 --> 0:22:22.919
<v Speaker 4>the you know, one of the craziest, fastest sports that

0:22:22.960 --> 0:22:27.439
<v Speaker 4>there is. You're not really making a ton of money.

0:22:27.520 --> 0:22:30.919
<v Speaker 4>You're mostly just kind of trying to stay alive and

0:22:31.080 --> 0:22:35.159
<v Speaker 4>hope it all works out for the best. But it

0:22:35.440 --> 0:22:37.240
<v Speaker 4>you know, if you've noticed, it can be really you

0:22:37.280 --> 0:22:39.719
<v Speaker 4>can if you have a team like say Williams, a

0:22:39.760 --> 0:22:43.560
<v Speaker 4>former world champion that slips down the rankings one year,

0:22:43.640 --> 0:22:45.920
<v Speaker 4>they really struggle to claw their way back up because

0:22:45.920 --> 0:22:49.080
<v Speaker 4>they don't have enough money to continue developing their cars.

0:22:49.760 --> 0:22:52.800
<v Speaker 4>It's like it is just kind of it's a passion

0:22:52.840 --> 0:22:55.439
<v Speaker 4>project for a lot of people. When people ask me

0:22:55.480 --> 0:22:58.280
<v Speaker 4>what I wanted to do with my English degree from college,

0:22:58.320 --> 0:23:00.240
<v Speaker 4>it was a very similar answer. It was like, I

0:23:00.240 --> 0:23:02.840
<v Speaker 4>will find a thing that makes sense to me and

0:23:02.880 --> 0:23:06.040
<v Speaker 4>that matters to me, and I will do that like wholeheartedly.

0:23:06.200 --> 0:23:08.040
<v Speaker 4>And it's very similar with Formula one.

0:23:08.200 --> 0:23:11.399
<v Speaker 2>So as an American Michael, you might have heard about

0:23:11.440 --> 0:23:15.520
<v Speaker 2>Andretti as a name. Yeah, So Andretti are one of

0:23:15.520 --> 0:23:18.200
<v Speaker 2>those teams that has been really interested in joining the GRIT.

0:23:18.720 --> 0:23:21.680
<v Speaker 2>So there's an opportunity in twenty twenty six to add

0:23:21.760 --> 0:23:25.879
<v Speaker 2>more teams to Formula one. Now the FIA says that

0:23:25.920 --> 0:23:28.400
<v Speaker 2>you can have up to thirteen teams in Formula one,

0:23:28.640 --> 0:23:31.639
<v Speaker 2>which means twenty six drivers on the GRIT. The reason

0:23:31.680 --> 0:23:33.920
<v Speaker 2>why we haven't had more than ten teams up until

0:23:33.960 --> 0:23:36.240
<v Speaker 2>now is a. As we've been talking about, it's really expensive.

0:23:37.119 --> 0:23:40.680
<v Speaker 2>B it's also technically very complicated to build the types

0:23:40.720 --> 0:23:43.040
<v Speaker 2>of engines that you need in Formula one these days,

0:23:43.280 --> 0:23:45.440
<v Speaker 2>and the latest regulations of twenty twenty two are trying

0:23:45.440 --> 0:23:47.400
<v Speaker 2>to change that. They're trying to lower the barity entry.

0:23:47.440 --> 0:23:49.240
<v Speaker 2>We'll talk about the cost cap. They're also trying to

0:23:49.240 --> 0:23:52.919
<v Speaker 2>make the power units that much more simple so ensure

0:23:53.040 --> 0:23:56.640
<v Speaker 2>that more people can join the GRIT. So Andretti are

0:23:56.640 --> 0:23:58.720
<v Speaker 2>one of the few teams that put a bid forward.

0:23:58.800 --> 0:24:01.480
<v Speaker 2>But here's where the problem it. First of all, we've

0:24:01.520 --> 0:24:04.200
<v Speaker 2>seen in the news the FA pushing for a desire

0:24:04.240 --> 0:24:08.080
<v Speaker 2>to have an eleventh team. Mohammed bin Sulaam, which is

0:24:08.119 --> 0:24:10.280
<v Speaker 2>the president of the FIA, has been very vocal about this,

0:24:10.320 --> 0:24:12.280
<v Speaker 2>But the problem is he doesn't actually have that much

0:24:12.320 --> 0:24:14.359
<v Speaker 2>of a say. And then you've got the teams on

0:24:14.400 --> 0:24:17.399
<v Speaker 2>the other hand, who've been pretty negative and averse to

0:24:17.400 --> 0:24:18.480
<v Speaker 2>adding an eleventh team.

0:24:18.720 --> 0:24:21.639
<v Speaker 3>Business is on fire. The sport's never been in a

0:24:21.680 --> 0:24:24.399
<v Speaker 3>better place, and I believe if it ain't broken, on

0:24:24.480 --> 0:24:26.399
<v Speaker 3>need to fix it. So I'm a strong believer that

0:24:26.440 --> 0:24:28.879
<v Speaker 3>it's working really well with ten teams right now and

0:24:28.960 --> 0:24:30.359
<v Speaker 3>believe that's the way it should stay.

0:24:30.440 --> 0:24:33.880
<v Speaker 4>There's just a concern from the teams that an eleventh

0:24:33.920 --> 0:24:37.800
<v Speaker 4>team will cut into their profits because price money is

0:24:37.840 --> 0:24:42.080
<v Speaker 4>distributed from a pot, so everyone takes out of this

0:24:42.200 --> 0:24:45.280
<v Speaker 4>pot based on their performance. If you have an eleventh

0:24:45.320 --> 0:24:48.639
<v Speaker 4>team that starts scoring points, that's per You know the

0:24:48.680 --> 0:24:51.600
<v Speaker 4>teams are seeing it is they've taken points away from us.

0:24:51.880 --> 0:24:53.680
<v Speaker 4>So now all these teams are saying, hey, I don't

0:24:53.920 --> 0:24:55.880
<v Speaker 4>I don't want to have anyone in here. It's bad

0:24:55.920 --> 0:24:56.800
<v Speaker 4>for the bottom line.

0:24:57.000 --> 0:24:59.160
<v Speaker 1>Yeah, and there's more people on the.

0:24:59.080 --> 0:25:00.720
<v Speaker 2>Track, more people on the track.

0:25:00.840 --> 0:25:03.520
<v Speaker 1>What's unique about this sport is there's literally only so

0:25:03.640 --> 0:25:06.320
<v Speaker 1>much space on the track to add another car, another

0:25:06.320 --> 0:25:08.320
<v Speaker 1>person to crash into. If you can add another team

0:25:08.359 --> 0:25:11.160
<v Speaker 1>to the NHL that doesn't mean there's ten more people

0:25:11.200 --> 0:25:11.680
<v Speaker 1>on the ice.

0:25:12.720 --> 0:25:14.840
<v Speaker 2>That's actually I again, yeah, that's what I'm.

0:25:14.680 --> 0:25:18.440
<v Speaker 1>Here for, these fucking and brilliant statements, but that I

0:25:18.480 --> 0:25:20.640
<v Speaker 1>would not want if I'm driving, I don't want more

0:25:20.680 --> 0:25:23.400
<v Speaker 1>people on the street that I'm working on. Yeah, exactly.

0:25:23.480 --> 0:25:25.679
<v Speaker 2>So that's the tension that we're in right now, is

0:25:25.760 --> 0:25:28.679
<v Speaker 2>it's good for the sport to be seen adding more teams.

0:25:28.760 --> 0:25:31.560
<v Speaker 2>It's good for it to showcase that, hey, this sport

0:25:31.600 --> 0:25:34.199
<v Speaker 2>doesn't cost that much money, it's not that complicated. You

0:25:34.200 --> 0:25:36.720
<v Speaker 2>can actually join the party quote unquote. But at the

0:25:36.720 --> 0:25:38.639
<v Speaker 2>same time you've got attention from the teams, and so

0:25:38.680 --> 0:25:41.720
<v Speaker 2>there's things that have been shifting constantly. Of wall, how

0:25:41.800 --> 0:25:44.399
<v Speaker 2>much does it cost to be a part of these teams,

0:25:44.480 --> 0:25:47.600
<v Speaker 2>And they're now asking essentially the teams to prove that

0:25:47.600 --> 0:25:50.359
<v Speaker 2>they have one billion in their bank account to ensure

0:25:50.359 --> 0:25:53.280
<v Speaker 2>that they can keep paying to be a Formula one team.

0:25:53.359 --> 0:25:55.639
<v Speaker 1>Jeez, you gonna have a billion? Yeah, here comes to

0:25:55.720 --> 0:25:56.440
<v Speaker 1>the South East.

0:26:00.119 --> 0:26:04.359
<v Speaker 2>So, Michael, this is Tony of the Future interjecting in

0:26:04.440 --> 0:26:10.000
<v Speaker 2>here because oh, because we just got an update that

0:26:10.040 --> 0:26:13.480
<v Speaker 2>the Indretti bid was in fact dumtum dum.

0:26:13.960 --> 0:26:16.520
<v Speaker 9>They are not deemed fit to join the grid in

0:26:16.600 --> 0:26:21.240
<v Speaker 9>commercial terms by the sports commercial rights holder rejected. We

0:26:21.359 --> 0:26:26.440
<v Speaker 9>do not believe that the applicant would be a competitive participant.

0:26:26.680 --> 0:26:28.880
<v Speaker 2>They will not be a part of the F one

0:26:28.920 --> 0:26:31.400
<v Speaker 2>grid until at least twenty twenty eight.

0:26:31.560 --> 0:26:33.320
<v Speaker 1>Oh wow, that's a long way away.

0:26:33.359 --> 0:26:37.520
<v Speaker 6>This does put the FIA absolutely the regulator is absolutely

0:26:37.560 --> 0:26:41.560
<v Speaker 6>head to head with Formula one Management and Liberty Media,

0:26:42.000 --> 0:26:46.439
<v Speaker 6>the financial rights holders. Because FIA said yes, one.

0:26:46.359 --> 0:26:48.840
<v Speaker 2>Have said no, Okay, you can go back to the

0:26:48.880 --> 0:26:49.520
<v Speaker 2>present now.

0:26:50.119 --> 0:26:56.480
<v Speaker 1>Tony of the future. So how do these teams make money?

0:26:56.560 --> 0:26:59.440
<v Speaker 2>So, as we've discussed, it's the F one prize money,

0:27:00.320 --> 0:27:03.920
<v Speaker 2>it's also the sponsorship, and i'd say that sponsorship it's

0:27:04.080 --> 0:27:06.159
<v Speaker 2>give and take. It depends on different teams, but probably

0:27:06.160 --> 0:27:08.720
<v Speaker 2>accounts for about fifty percent of the money that they make.

0:27:09.400 --> 0:27:12.240
<v Speaker 2>And then if you're also a car manufacturer, you will

0:27:12.280 --> 0:27:15.399
<v Speaker 2>also make money from selling your engines to other teams.

0:27:15.640 --> 0:27:18.880
<v Speaker 2>But also maybe the applied science is what teams are

0:27:18.920 --> 0:27:24.720
<v Speaker 2>able to create and innovate behind closed doors they can

0:27:24.760 --> 0:27:25.439
<v Speaker 2>then sell.

0:27:25.560 --> 0:27:28.679
<v Speaker 1>So they're coming up with ideas and solutions and selling

0:27:28.680 --> 0:27:29.800
<v Speaker 1>them to their competitors.

0:27:29.960 --> 0:27:35.280
<v Speaker 2>Yes, so, for example, Ferrari is a works team that

0:27:35.400 --> 0:27:38.800
<v Speaker 2>sells their engine, also to Alpha Romeo. Mercedes is a

0:27:38.840 --> 0:27:41.080
<v Speaker 2>works team that develop an engine and a power unit

0:27:41.119 --> 0:27:43.359
<v Speaker 2>and sell it to Williams. And then you've got teams

0:27:43.359 --> 0:27:46.600
<v Speaker 2>also like Alpine whose engine is a Honel engine, but

0:27:46.680 --> 0:27:48.760
<v Speaker 2>they're not selling it to anyone else, so no one

0:27:48.800 --> 0:27:50.440
<v Speaker 2>wants to buy their engine, which we can go back

0:27:50.440 --> 0:27:53.560
<v Speaker 2>to Andretti Andretti's and talks of potentially buying their engine,

0:27:53.600 --> 0:27:56.000
<v Speaker 2>which they would love because it's another revenue stream for them.

0:27:56.000 --> 0:28:01.359
<v Speaker 1>I see, interesting, makes sense their side hustle, it's selling them, it's.

0:28:00.720 --> 0:28:05.080
<v Speaker 2>Side us, yes, Michael. So the other way to look

0:28:05.119 --> 0:28:07.560
<v Speaker 2>at it is if you look at the ten teams

0:28:07.560 --> 0:28:10.840
<v Speaker 2>we have on the grid, there's maybe different buckets. There's

0:28:10.840 --> 0:28:13.440
<v Speaker 2>the buckets of teams who are Calm manufacturers as well,

0:28:13.600 --> 0:28:17.520
<v Speaker 2>so McLaren Mercedes, Ferrari and you can kind of wrap

0:28:17.560 --> 0:28:19.520
<v Speaker 2>your head around why they would want to be informal one.

0:28:19.640 --> 0:28:22.560
<v Speaker 2>Obviously a Ferrari in the championship do very well. There's

0:28:22.600 --> 0:28:25.520
<v Speaker 2>a fair pretty straightforward line that says that they're probably

0:28:25.560 --> 0:28:28.960
<v Speaker 2>going to sell more Ferraris of their sports cards. That's

0:28:29.000 --> 0:28:32.359
<v Speaker 2>one bucket. There's the second bucket, which some would put

0:28:32.520 --> 0:28:35.440
<v Speaker 2>in the bucket of Oh, you've just got so much

0:28:35.480 --> 0:28:37.080
<v Speaker 2>money you don't know what to do with it, and

0:28:37.240 --> 0:28:39.960
<v Speaker 2>this seems like a great venture. You can think of

0:28:39.960 --> 0:28:43.440
<v Speaker 2>Aston Martin with Lawrence Stroll. We can also talk about

0:28:43.480 --> 0:28:45.840
<v Speaker 2>the fact that his son is one of the drivers

0:28:45.840 --> 0:28:47.960
<v Speaker 2>on that team. It's just like I've got some spare

0:28:48.000 --> 0:28:50.040
<v Speaker 2>cash in my back pocket. Let me have a former

0:28:50.120 --> 0:28:52.760
<v Speaker 2>one Telts and the Glamor Formal one looks good. And

0:28:52.800 --> 0:28:55.680
<v Speaker 2>then you've got a third bucket, which again goes a

0:28:55.720 --> 0:28:57.440
<v Speaker 2>little bit back to the history of Formula one. The

0:28:57.440 --> 0:28:59.520
<v Speaker 2>teams who've been there since they get go. You think

0:28:59.560 --> 0:29:03.240
<v Speaker 2>of the legas someone like Williams, someone like Ferrari who

0:29:03.480 --> 0:29:04.840
<v Speaker 2>you know, as I said, I think they've been there

0:29:04.880 --> 0:29:09.760
<v Speaker 2>since day one. Fun fact, both of those teams still

0:29:09.760 --> 0:29:11.520
<v Speaker 2>get a pot of money at the start of every

0:29:11.600 --> 0:29:15.120
<v Speaker 2>year to help them ensure that they never leave the sports.

0:29:15.320 --> 0:29:15.720
<v Speaker 1>Interesting.

0:29:15.800 --> 0:29:18.000
<v Speaker 2>It's like a little bit of a bonus bonus for

0:29:18.040 --> 0:29:20.480
<v Speaker 2>being there since day one. And I say a little

0:29:20.480 --> 0:29:22.240
<v Speaker 2>bit of bonus, it's something like, you know, ten to

0:29:22.280 --> 0:29:23.720
<v Speaker 2>twenty million that they get at the start of the.

0:29:23.840 --> 0:29:27.000
<v Speaker 5>Right there is only really one brand that transcends Formula

0:29:27.080 --> 0:29:30.040
<v Speaker 5>one is and is in this sense, perhaps you could

0:29:30.120 --> 0:29:34.440
<v Speaker 5>argue as big as or bigger than Formula one, and

0:29:34.600 --> 0:29:37.600
<v Speaker 5>that therefore it's removal from Formula one would cause a

0:29:37.680 --> 0:29:45.200
<v Speaker 5>seismic problem, a very serious problem. I mean other teams

0:29:45.240 --> 0:29:49.600
<v Speaker 5>having departed from the sport, such as Lotus, great pity, Brabham,

0:29:49.800 --> 0:29:54.400
<v Speaker 5>great pity, br In, great pity, Maserati, great pity. But

0:29:55.120 --> 0:29:57.160
<v Speaker 5>Ferrari is Ferrari. Ferrari is special.

0:29:57.440 --> 0:30:00.200
<v Speaker 1>I mean in tennis, you know, the top players get

0:30:00.200 --> 0:30:04.720
<v Speaker 1>appearance fees, whereas me and you wouldn't. I shouldn't speak

0:30:04.720 --> 0:30:06.320
<v Speaker 1>on your behalf. You might be an excellentennis but you

0:30:06.400 --> 0:30:08.840
<v Speaker 1>might deserve it an appearance fee. But you know, it's

0:30:08.920 --> 0:30:10.800
<v Speaker 1>kind of like, hey, Ferrari and Williams, you've been here

0:30:10.800 --> 0:30:12.680
<v Speaker 1>and there are huge names in the sports. So here's

0:30:12.680 --> 0:30:14.440
<v Speaker 1>a couple bucks, here's a couple It would piss me

0:30:14.440 --> 0:30:17.440
<v Speaker 1>off if I was a competitor, because of course that

0:30:17.480 --> 0:30:18.560
<v Speaker 1>money goes to helping you.

0:30:18.640 --> 0:30:21.240
<v Speaker 2>But that's interesting you bring that up, Michael, because essentially

0:30:21.280 --> 0:30:23.400
<v Speaker 2>all the teams are doing exactly that. With Hundrettick, which

0:30:23.680 --> 0:30:25.600
<v Speaker 2>we've been here for the last thirty forty years. You

0:30:25.640 --> 0:30:27.160
<v Speaker 2>don't get to just come in and take part of

0:30:27.160 --> 0:30:29.000
<v Speaker 2>the prize money. So it's interesting because it's that same

0:30:29.040 --> 0:30:31.240
<v Speaker 2>mentality that's still there because again there's so much money

0:30:31.240 --> 0:30:34.600
<v Speaker 2>that's being poured into it. There's a fourth bucket, which.

0:30:34.400 --> 0:30:35.440
<v Speaker 1>I think is you could a bucket.

0:30:35.480 --> 0:30:37.479
<v Speaker 2>There's so many buckets, but it's the last one, I promise,

0:30:37.880 --> 0:30:42.200
<v Speaker 2>which is more of like a marketing marketing stunt, though

0:30:42.240 --> 0:30:44.959
<v Speaker 2>stunt doesn't feel big enough. But you think of someone

0:30:45.080 --> 0:30:46.920
<v Speaker 2>like Red Bull and you go, why does a fizzy

0:30:46.960 --> 0:30:49.920
<v Speaker 2>drinks company pour a lot of their marketing budget into

0:30:49.960 --> 0:30:50.840
<v Speaker 2>this Formula one.

0:30:50.720 --> 0:30:54.320
<v Speaker 4>Team delivering their livery for the US Grand Prix this

0:30:54.400 --> 0:30:58.160
<v Speaker 4>year via helicopter? Who else is doing that? Who else

0:30:58.240 --> 0:31:01.120
<v Speaker 4>is thinking of like depositing their car into the middle

0:31:01.120 --> 0:31:05.800
<v Speaker 4>of Austin via helicopter just because it's cool? Red Bull

0:31:05.880 --> 0:31:08.160
<v Speaker 4>is because Red Bull's genius at marketing.

0:31:08.360 --> 0:31:09.920
<v Speaker 2>I don't know if you've seen these, Michael, these vox

0:31:10.040 --> 0:31:12.160
<v Speaker 2>pops of people in the street showing the ten logos

0:31:12.160 --> 0:31:14.560
<v Speaker 2>of the ten F one teams. The one that everyone

0:31:14.600 --> 0:31:17.440
<v Speaker 2>always recognizes is Red Bull. They're just like, oh, I

0:31:17.480 --> 0:31:19.280
<v Speaker 2>know what that is. And it's so funny that it's

0:31:19.360 --> 0:31:21.320
<v Speaker 2>not one of the Formula one teams, but the red

0:31:21.360 --> 0:31:23.640
<v Speaker 2>Bull brand is so strong outside of the sport that

0:31:23.680 --> 0:31:26.479
<v Speaker 2>it actually has helped them a fair amount.

0:31:26.760 --> 0:31:30.600
<v Speaker 4>Red Bull is going to sell you drinks because you're

0:31:30.640 --> 0:31:32.120
<v Speaker 4>going to look at that and be like, oh my god,

0:31:32.120 --> 0:31:32.840
<v Speaker 4>that's insane.

0:31:33.120 --> 0:31:37.120
<v Speaker 1>So Red Bull is selling enough little energy drinks to

0:31:37.200 --> 0:31:39.880
<v Speaker 1>make a rocket ship with wheels on it that keeps winning.

0:31:41.000 --> 0:31:43.680
<v Speaker 8>Just crunching the numbers here a little bit for you guys.

0:31:43.760 --> 0:31:47.960
<v Speaker 8>So the budget for running the team is one hundred

0:31:48.000 --> 0:31:51.560
<v Speaker 8>and fifty million, which maybe, yeah, maybe Tony can explain

0:31:51.640 --> 0:31:53.920
<v Speaker 8>has to do with the budget cap, the cost cap.

0:31:54.600 --> 0:31:57.720
<v Speaker 8>So you can buy about seventy five million Red Bull

0:31:57.760 --> 0:32:01.360
<v Speaker 8>cans with that, and last year they sold somewhere in

0:32:01.400 --> 0:32:04.280
<v Speaker 8>the area of eleven point five billion cans.

0:32:04.600 --> 0:32:09.120
<v Speaker 1>I mean, isn't anything. This just says that as a civilization,

0:32:09.560 --> 0:32:15.760
<v Speaker 1>we're very tired. We're just drinking such crap. I swear

0:32:15.800 --> 0:32:18.560
<v Speaker 1>to god, if people just drank more water, we would

0:32:18.600 --> 0:32:22.560
<v Speaker 1>be such a better place. Yeah, happier skin would be better,

0:32:22.640 --> 0:32:23.240
<v Speaker 1>stronger tea.

0:32:23.360 --> 0:32:27.640
<v Speaker 2>You've got a kind of red Ball in my bag.

0:32:28.240 --> 0:32:31.440
<v Speaker 2>I bought it so much that the team at red Bull.

0:32:31.520 --> 0:32:33.720
<v Speaker 2>Fun fact, now give me a crate. I love it,

0:32:34.960 --> 0:32:37.840
<v Speaker 2>which great, Just keep mine I don't drink coffee, so

0:32:37.880 --> 0:32:40.840
<v Speaker 2>I do drink red Bull and have since I was thirteen, bizarrely,

0:32:41.200 --> 0:32:43.000
<v Speaker 2>which was a fluke from my dad. He thought it

0:32:43.040 --> 0:32:43.760
<v Speaker 2>was fizzy water.

0:32:44.840 --> 0:32:47.600
<v Speaker 1>Well, you're dad, let's not let's not get in him, let's.

0:32:47.440 --> 0:32:49.240
<v Speaker 2>Not bring him into that. No, but the thing I

0:32:49.280 --> 0:32:52.240
<v Speaker 2>didn't want to say about the market.

0:32:52.760 --> 0:32:55.360
<v Speaker 8>Right, Actually, maybe we could posia for a second. So

0:32:55.360 --> 0:32:57.120
<v Speaker 8>you've been drinking red Bull.

0:32:57.400 --> 0:33:02.120
<v Speaker 2>He's worried about my health. Yes, yeah today.

0:33:02.320 --> 0:33:03.960
<v Speaker 8>I mean we haven't gone there yet, but I'm starting

0:33:04.000 --> 0:33:06.960
<v Speaker 8>to understand why you're a MAX for Stappen fan.

0:33:06.880 --> 0:33:08.320
<v Speaker 2>But I'm not a Max with Stappen fan.

0:33:08.400 --> 0:33:10.200
<v Speaker 1>You were saying good things are more of a defender

0:33:10.240 --> 0:33:15.800
<v Speaker 1>of him, exactly. I think red Bull found a market

0:33:15.840 --> 0:33:19.240
<v Speaker 1>share that didn't exist, breaking ground. The next one is

0:33:19.280 --> 0:33:26.800
<v Speaker 1>liquid death. It's water, but it's marketed water, and that's

0:33:26.920 --> 0:33:28.960
<v Speaker 1>that might be the next one. For years, a bunch

0:33:28.960 --> 0:33:31.360
<v Speaker 1>of marketing fuck boys have tricked you into thinking that

0:33:31.400 --> 0:33:33.120
<v Speaker 1>water is just some girly.

0:33:32.920 --> 0:33:34.640
<v Speaker 2>Tricks for yoga ooms.

0:33:35.360 --> 0:33:38.160
<v Speaker 1>Just look at all the cute brand names and thank

0:33:38.200 --> 0:33:39.080
<v Speaker 1>you bottles.

0:33:39.480 --> 0:33:41.920
<v Speaker 2>Well, can we get here?

0:33:44.160 --> 0:33:46.840
<v Speaker 1>What's this cost capting you keep bringing up? Is that

0:33:46.920 --> 0:33:48.080
<v Speaker 1>like salary cap.

0:33:48.720 --> 0:33:51.840
<v Speaker 2>No, but that has been a conversation. Should you cap

0:33:51.920 --> 0:33:54.280
<v Speaker 2>the driver's salary, which I am fervently against.

0:33:54.360 --> 0:33:58.280
<v Speaker 4>Okay, the Formula one cost cap is an artificial limit

0:33:58.480 --> 0:34:01.320
<v Speaker 4>on how much every form Milue one team is allowed

0:34:01.360 --> 0:34:04.040
<v Speaker 4>to spend on certain things like the development of their

0:34:04.080 --> 0:34:08.360
<v Speaker 4>car and the salaries of some personnel. Previously, Mercedes was

0:34:08.400 --> 0:34:12.520
<v Speaker 4>spending over four hundred million dollars to win the World Championship,

0:34:13.160 --> 0:34:15.600
<v Speaker 4>while you had a team like Williams that was like

0:34:15.840 --> 0:34:19.920
<v Speaker 4>maybe ten million dollars. You know, they just didn't have

0:34:20.000 --> 0:34:23.680
<v Speaker 4>the funding to be able to match that. Limiting the

0:34:24.080 --> 0:34:26.520
<v Speaker 4>expenditure of the teams to about one hundred and fifty

0:34:26.520 --> 0:34:31.680
<v Speaker 4>million dollars every year in theory, should help level the

0:34:31.680 --> 0:34:34.680
<v Speaker 4>playing field because something like you know, Red Bull can't

0:34:34.920 --> 0:34:37.080
<v Speaker 4>go out and spend all of this extra money.

0:34:37.719 --> 0:34:42.279
<v Speaker 7>However, you know, certainly not aware of any see the

0:34:42.800 --> 0:34:45.279
<v Speaker 7>accounts or submitted way back in March. So it's been

0:34:45.280 --> 0:34:47.480
<v Speaker 7>a long process with the FIA.

0:34:47.760 --> 0:34:50.799
<v Speaker 4>You can. We saw that with Red Bull they were

0:34:50.920 --> 0:34:52.959
<v Speaker 4>accused of exceeding the cost cap.

0:34:53.040 --> 0:34:54.920
<v Speaker 7>That's complete rubbish. I mean we heard from the FIA

0:34:55.000 --> 0:34:58.840
<v Speaker 7>ten days ago asking some questions for clarifications as you

0:34:58.840 --> 0:35:00.160
<v Speaker 7>would do in a standard All.

0:35:00.239 --> 0:35:01.960
<v Speaker 4>They claimed it was through catering.

0:35:02.239 --> 0:35:03.960
<v Speaker 1>So it's just some really fancy sandwiches.

0:35:04.080 --> 0:35:07.200
<v Speaker 4>Yeah, just really really expensive little finger sandwiches.

0:35:07.320 --> 0:35:07.719
<v Speaker 2>That's it.

0:35:08.000 --> 0:35:08.960
<v Speaker 1>Who's checking all this.

0:35:09.239 --> 0:35:12.560
<v Speaker 4>The FIA is looking into all of those finances to

0:35:12.640 --> 0:35:16.440
<v Speaker 4>make sure that everything is kosher. But you don't go like,

0:35:16.480 --> 0:35:18.640
<v Speaker 4>you don't get in a Formula one team if you

0:35:18.760 --> 0:35:22.759
<v Speaker 4>don't find loopholes in everything that you do. And so

0:35:24.160 --> 0:35:27.680
<v Speaker 4>you know, we had teams like Red Bull that perhaps

0:35:27.760 --> 0:35:30.080
<v Speaker 4>spent a little bit more money than they were supposed to,

0:35:30.520 --> 0:35:32.399
<v Speaker 4>got away with it with nothing more than a slap

0:35:32.440 --> 0:35:34.920
<v Speaker 4>on the wrists and having to pay a certain large

0:35:34.960 --> 0:35:40.120
<v Speaker 4>fine for the pleasure. Because spending money is obviously the

0:35:40.120 --> 0:35:41.560
<v Speaker 4>answer to spending money.

0:35:42.320 --> 0:35:44.879
<v Speaker 1>Think about rich people with taxes. Think about I mean

0:35:45.080 --> 0:35:47.040
<v Speaker 1>is they're experts at cheating.

0:35:47.760 --> 0:35:49.640
<v Speaker 4>If you want to be in Formula one, you probably

0:35:49.680 --> 0:35:52.439
<v Speaker 4>want to cheat a little bit. Fudge the rules, find

0:35:52.440 --> 0:35:53.120
<v Speaker 4>the loopholes.

0:35:53.280 --> 0:35:57.920
<v Speaker 1>One thing is certain, Unlimited budgets does not guarantee victory.

0:35:58.200 --> 0:36:00.520
<v Speaker 1>We look at the New York Yankees like, yeah, they

0:36:00.560 --> 0:36:02.200
<v Speaker 1>buy everybody.

0:36:01.760 --> 0:36:01.920
<v Speaker 3>But.

0:36:03.480 --> 0:36:07.960
<v Speaker 1>Huge budgets definitely put you in a better chance for success.

0:36:08.160 --> 0:36:10.879
<v Speaker 1>So I like this cost cap a lot. Just think, Tony,

0:36:10.920 --> 0:36:13.920
<v Speaker 1>what about my original question, which was sponsorships in particular,

0:36:13.960 --> 0:36:16.200
<v Speaker 1>how can I get my face on the has or

0:36:16.239 --> 0:36:16.959
<v Speaker 1>Alpine car?

0:36:17.800 --> 0:36:20.560
<v Speaker 2>Don't you worry. I haven't forgotten. We are going to

0:36:20.640 --> 0:36:23.920
<v Speaker 2>get into this very important topic. But just after a

0:36:23.960 --> 0:36:25.279
<v Speaker 2>short break we better.

0:36:28.320 --> 0:36:30.520
<v Speaker 1>So what about sponsorships? You know, how much is it

0:36:30.560 --> 0:36:32.360
<v Speaker 1>going to set me back to put my face on

0:36:32.640 --> 0:36:36.439
<v Speaker 1>the Alpine car or the Hoss car or the Mercedes car.

0:36:36.600 --> 0:36:39.359
<v Speaker 4>Well, if you wanted to put your name in your

0:36:39.400 --> 0:36:43.320
<v Speaker 4>face on a Formula One car, I would recommend starting

0:36:43.719 --> 0:36:45.960
<v Speaker 4>the bottom of the grid and working your way up

0:36:46.080 --> 0:36:48.799
<v Speaker 4>because your numbers will get larger as you move up

0:36:48.840 --> 0:36:52.359
<v Speaker 4>to the more expensive and better performing teams. So if

0:36:52.360 --> 0:36:55.560
<v Speaker 4>you were to bring yourself to Williams and say I

0:36:55.600 --> 0:36:57.319
<v Speaker 4>would love my name and face on the car, what

0:36:57.360 --> 0:37:01.200
<v Speaker 4>can we work out? You were probably looking at somewhere

0:37:02.040 --> 0:37:05.920
<v Speaker 4>fifteen million a year and up fifteen million is of

0:37:06.080 --> 0:37:09.720
<v Speaker 4>probably a small little bit of you know, a little sticker.

0:37:10.719 --> 0:37:12.839
<v Speaker 4>You're not going to be a title sponsor, you are

0:37:12.840 --> 0:37:14.680
<v Speaker 4>not going to be a title partner. You're probably not

0:37:14.760 --> 0:37:19.160
<v Speaker 4>even gonna make your face on their overalls. But you're

0:37:19.200 --> 0:37:22.879
<v Speaker 4>on the car in a little spot looks cool if

0:37:22.920 --> 0:37:26.160
<v Speaker 4>you are looking for like a Mercedes or something, those

0:37:26.280 --> 0:37:29.200
<v Speaker 4>deals start getting into the hundreds of millions of dollars

0:37:29.280 --> 0:37:32.360
<v Speaker 4>just because they are so high profile. They know that

0:37:32.400 --> 0:37:34.160
<v Speaker 4>they're going to be out there competing at the front

0:37:34.160 --> 0:37:36.239
<v Speaker 4>of the field, so you better be able to.

0:37:36.200 --> 0:37:39.560
<v Speaker 2>Pay up for that. So there's two things here. There's

0:37:39.640 --> 0:37:43.040
<v Speaker 2>name title sponsors, so it's in the name. So for example,

0:37:43.080 --> 0:37:47.399
<v Speaker 2>it's Aston Martin, Ramco, Cognisant Formula one. That's the that's

0:37:47.400 --> 0:37:50.439
<v Speaker 2>a mouthful, that's the full length of their actual name.

0:37:50.640 --> 0:37:53.600
<v Speaker 2>So as a title sponsor, they have Cognisant and a Ramco.

0:37:53.800 --> 0:37:56.200
<v Speaker 1>That's why they're not winning. All those letters are weighing

0:37:56.200 --> 0:37:56.600
<v Speaker 1>them down.

0:37:56.840 --> 0:37:59.759
<v Speaker 2>It's funny you bring that up because, and I'm just

0:37:59.760 --> 0:38:03.320
<v Speaker 2>going to weave this in here, one of the tensions

0:38:03.320 --> 0:38:05.840
<v Speaker 2>between the marketing team and the development team in and

0:38:05.920 --> 0:38:08.480
<v Speaker 2>Formula one car is the marketing team has promised and

0:38:08.520 --> 0:38:10.400
<v Speaker 2>sold all of this sponsorship, which we'll get back to

0:38:10.440 --> 0:38:12.600
<v Speaker 2>in a second, and they now have to slap all

0:38:12.600 --> 0:38:15.480
<v Speaker 2>of these logos on the car, and the mechanics are saying, WHOA,

0:38:15.520 --> 0:38:17.920
<v Speaker 2>WHOA hold them minute. That's weighing us down. So can

0:38:17.960 --> 0:38:20.239
<v Speaker 2>we scrapp all of this paint off. So again it's

0:38:20.280 --> 0:38:20.879
<v Speaker 2>another one of.

0:38:20.800 --> 0:38:24.080
<v Speaker 1>Those use a fourteen fon just like we gotta use

0:38:24.120 --> 0:38:24.719
<v Speaker 1>a six five.

0:38:25.080 --> 0:38:29.000
<v Speaker 2>Every little ounce of page matters. So that's the first

0:38:29.000 --> 0:38:31.320
<v Speaker 2>thing to know about title sponsors. So the title sponsors

0:38:31.360 --> 0:38:33.759
<v Speaker 2>pay an absolute fortune. That's how the team. And you

0:38:33.760 --> 0:38:35.680
<v Speaker 2>look at some teams like there's a team like McClaren

0:38:35.719 --> 0:38:38.600
<v Speaker 2>that I think have over forty partners and sponsors.

0:38:38.640 --> 0:38:42.719
<v Speaker 1>Who is sponsoring? Who are these companies? Anybody? What about

0:38:42.719 --> 0:38:45.239
<v Speaker 1>the bodega down there, which I do not recommend.

0:38:45.360 --> 0:38:51.160
<v Speaker 2>Okay, good to know almost anyone can sponsor a Formula

0:38:51.200 --> 0:38:54.480
<v Speaker 2>one team or a Formula one carney. Money that's the

0:38:54.480 --> 0:38:58.120
<v Speaker 2>big thing. And we've had wild stories of quite literally

0:38:58.239 --> 0:39:01.759
<v Speaker 2>Nigerian princes coming in slapping their name on the We've

0:39:01.800 --> 0:39:05.839
<v Speaker 2>had you heard the story of Rich Energy last year.

0:39:06.360 --> 0:39:09.880
<v Speaker 2>We've had people with products that don't exist in the

0:39:09.920 --> 0:39:13.440
<v Speaker 2>sports that have promised money. Whether the money is there

0:39:13.480 --> 0:39:15.560
<v Speaker 2>or not, there is a whole thing. There's a couple

0:39:15.800 --> 0:39:18.719
<v Speaker 2>I think of categories that are banned. Big tobacco is

0:39:18.719 --> 0:39:21.160
<v Speaker 2>one of them. So if one was obviously high highly

0:39:21.239 --> 0:39:24.319
<v Speaker 2>highly sponsored by Big Tobacco back in the day, then

0:39:24.360 --> 0:39:27.200
<v Speaker 2>it went into alcohol, then it went into big tech,

0:39:27.280 --> 0:39:29.120
<v Speaker 2>and now it's gone into a little bit of crypto.

0:39:29.200 --> 0:39:31.160
<v Speaker 2>I think lasting nine out of the ten teams had

0:39:31.160 --> 0:39:35.600
<v Speaker 2>a crypto sponsor. Have you ever heard, Michael of the

0:39:35.640 --> 0:39:41.960
<v Speaker 2>barcode livery saga? Tobacco advertising was banned in almost all

0:39:42.000 --> 0:39:45.399
<v Speaker 2>sports from a European directive in two thousand and six

0:39:45.840 --> 0:39:48.360
<v Speaker 2>Ferrari at the time. You remember the big Marlblo logo

0:39:48.400 --> 0:39:50.799
<v Speaker 2>that they had on the side of their car. They

0:39:50.840 --> 0:39:54.600
<v Speaker 2>thought it would be genius to redesign the livery with

0:39:54.840 --> 0:39:57.160
<v Speaker 2>just basically like a barcode that looked on the side,

0:39:57.320 --> 0:40:00.920
<v Speaker 2>But when that car is driving paw you at high speed,

0:40:01.000 --> 0:40:04.840
<v Speaker 2>you get the Marlbo chevron and it's basically the Marlbo genius.

0:40:04.920 --> 0:40:07.399
<v Speaker 2>I will give credit where credit is due, and it's

0:40:07.440 --> 0:40:09.959
<v Speaker 2>only when the promoters realize the car going by really

0:40:09.960 --> 0:40:13.359
<v Speaker 2>fast and they were like old on a second, and

0:40:13.800 --> 0:40:15.960
<v Speaker 2>they're not the only ones. But just to say big

0:40:16.000 --> 0:40:20.239
<v Speaker 2>tobacco is still in some way, shape or form involved

0:40:20.320 --> 0:40:23.200
<v Speaker 2>in Formula one. I think obviously things like arms and

0:40:23.239 --> 0:40:25.799
<v Speaker 2>weapons like that's another market that they just wouldn't take.

0:40:26.440 --> 0:40:28.719
<v Speaker 2>But other than that, I think the teams on the

0:40:28.760 --> 0:40:31.080
<v Speaker 2>sport will take money from just about but.

0:40:30.960 --> 0:40:34.279
<v Speaker 1>It's never it's never like super healthy stuff, you know,

0:40:34.360 --> 0:40:40.120
<v Speaker 1>it's never like carrots. You know, it's always something nefarious.

0:40:40.160 --> 0:40:42.239
<v Speaker 1>But I guess that says more about our culture and

0:40:42.239 --> 0:40:44.640
<v Speaker 1>what we spend money on. I mean, wouldn't it be

0:40:44.719 --> 0:40:47.040
<v Speaker 1>cool though, if alfa Romeo had like a bunch of

0:40:47.040 --> 0:40:48.040
<v Speaker 1>carrots on its side.

0:40:48.120 --> 0:40:52.200
<v Speaker 4>So let's get started for this absolutely delicious salad.

0:40:52.760 --> 0:40:55.080
<v Speaker 1>I wouldn't put it past them, you know, or has

0:40:55.120 --> 0:40:59.040
<v Speaker 1>We're missing a whole avocado thing. Yeah, the best two

0:40:59.280 --> 0:41:03.560
<v Speaker 1>vegetables avocado and hero right, the haas avocado.

0:41:03.920 --> 0:41:05.799
<v Speaker 2>So what I'm hearing from you, Michael, is you just

0:41:05.840 --> 0:41:09.759
<v Speaker 2>want to sally Now. I always recommend has avocados, but

0:41:09.840 --> 0:41:10.560
<v Speaker 2>you can go ahead.

0:41:10.600 --> 0:41:15.560
<v Speaker 1>I'm thinking maybe my face now that we're talking this out,

0:41:16.040 --> 0:41:19.120
<v Speaker 1>chewing a carrot on an Alpha Romeo on the nose.

0:41:19.440 --> 0:41:21.880
<v Speaker 1>That could be tricky because the carrot. But anyways, I'll

0:41:21.960 --> 0:41:24.960
<v Speaker 1>check with my branding committee, my social media team, and

0:41:25.000 --> 0:41:27.960
<v Speaker 1>we'll get back to you on that. I like him, great,

0:41:29.120 --> 0:41:30.080
<v Speaker 1>I'm fucking starving.

0:41:30.200 --> 0:41:30.719
<v Speaker 2>That was a lot.

0:41:30.800 --> 0:41:33.200
<v Speaker 1>There's a lot. There's a lot in this episode on

0:41:33.280 --> 0:41:34.120
<v Speaker 1>how to make money.

0:41:34.320 --> 0:41:36.839
<v Speaker 2>So worth saying that we just this was the tip

0:41:36.880 --> 0:41:39.400
<v Speaker 2>of the iceberg, and there's probably a lot of things

0:41:39.440 --> 0:41:41.480
<v Speaker 2>that we've missed, and there's probably a lot more detail

0:41:41.560 --> 0:41:44.320
<v Speaker 2>that we can go into. But I'm curious after listening

0:41:44.360 --> 0:41:47.480
<v Speaker 2>to all of this and getting most, hopefully most of

0:41:47.480 --> 0:41:49.400
<v Speaker 2>your questions answered, do you think the business side of

0:41:49.480 --> 0:41:51.200
<v Speaker 2>Formula one is exciting? Do you think you could get

0:41:51.200 --> 0:41:51.799
<v Speaker 2>into it more?

0:41:51.920 --> 0:41:52.120
<v Speaker 4>Yeah?

0:41:52.160 --> 0:41:55.160
<v Speaker 1>I do. I mean what I love about the competitive

0:41:55.200 --> 0:42:00.960
<v Speaker 1>arena is that people are driven to six seed and

0:42:02.040 --> 0:42:09.520
<v Speaker 1>our creative, aggressive, persistent, and that definitely is being showcased

0:42:09.520 --> 0:42:12.080
<v Speaker 1>here from even just the way they manipulate the logo

0:42:12.280 --> 0:42:15.840
<v Speaker 1>or change it because they need the money to selling

0:42:17.239 --> 0:42:21.279
<v Speaker 1>power units to competitors. That's fascinating to me. So they're

0:42:21.320 --> 0:42:25.120
<v Speaker 1>willing to do whatever is needed to make money and

0:42:25.200 --> 0:42:28.760
<v Speaker 1>that definitely goes in line with my American capitalism upbringing.

0:42:29.719 --> 0:42:32.200
<v Speaker 1>And it doesn't surprise me that this is how Formula

0:42:32.239 --> 0:42:35.640
<v Speaker 1>one operates because it just feels like such a competitive,

0:42:35.719 --> 0:42:38.840
<v Speaker 1>high stakes arena where everything is on the table for

0:42:38.960 --> 0:42:42.719
<v Speaker 1>potential profit. I find it interesting. Yes, I could potentially

0:42:42.800 --> 0:42:44.440
<v Speaker 1>be a business fan of Formula one.

0:42:44.640 --> 0:42:54.719
<v Speaker 2>I like that.

0:42:56.080 --> 0:43:01.880
<v Speaker 8>This has been choosing sides, fection of Sports Illustrated Studios,

0:43:02.120 --> 0:43:07.320
<v Speaker 8>iHeart podcast and one oh one Studio Podcasts. The show

0:43:07.400 --> 0:43:12.000
<v Speaker 8>is hosted by Michael Costa and Tony Cowan Brown. This

0:43:12.080 --> 0:43:16.000
<v Speaker 8>episode was edited, scored, and sound designed by Senior producer

0:43:16.120 --> 0:43:21.520
<v Speaker 8>Jojai may Thadle. Scott Stone is the executive producer and

0:43:21.600 --> 0:43:25.280
<v Speaker 8>head of Audio, and Daniel Wexman is Director of Podcast

0:43:25.320 --> 0:43:29.960
<v Speaker 8>Development and production Manager at one O one Studios. At

0:43:30.040 --> 0:43:34.360
<v Speaker 8>iHeart Podcasts, Sean Titne is our executive producer and a

0:43:34.360 --> 0:43:38.120
<v Speaker 8>special thank you to Michelle Newman, David Glasser, and David

0:43:38.160 --> 0:43:42.040
<v Speaker 8>Hootkin from one O one Studios. For more shows from

0:43:42.080 --> 0:43:46.719
<v Speaker 8>iHeart Podcasts, go visit the iHeartRadio app, Apple Podcasts or

0:43:47.880 --> 0:43:52.600
<v Speaker 8>wherever you get your podcasts, and whatever you do, don't

0:43:52.640 --> 0:43:57.120
<v Speaker 8>forget to rate us and tell your friends. It really

0:43:57.120 --> 0:43:57.839
<v Speaker 8>does be a lot.

0:44:02.960 --> 0:44:05.000
<v Speaker 2>So you might think that Formula one is a race

0:44:05.080 --> 0:44:07.080
<v Speaker 2>and it's all about the speed and the money, but

0:44:07.120 --> 0:44:09.319
<v Speaker 2>the reality is Formula one is a lot like a

0:44:09.360 --> 0:44:11.880
<v Speaker 2>game of chess. So next week we're going in a

0:44:11.920 --> 0:44:14.000
<v Speaker 2>completely different direction and we're going to talk all things

0:44:14.040 --> 0:44:17.000
<v Speaker 2>game theory and strategy and explain why before the race,

0:44:17.080 --> 0:44:19.719
<v Speaker 2>each team comes up with a plan a b C D.

0:44:21.280 --> 0:44:22.160
<v Speaker 4>E.

0:44:22.800 --> 0:44:26.440
<v Speaker 2>In case you are wondering, Michael, Plan E apparently stood

0:44:26.520 --> 0:44:29.320
<v Speaker 2>for engine failure. A few laps after the team radio,

0:44:29.400 --> 0:44:31.480
<v Speaker 2>Carlo signs engine burst into flames.

0:44:33.040 --> 0:44:35.440
<v Speaker 9>No no, no no.

0:44:37.160 --> 0:44:39.560
<v Speaker 2>So now we know what plan E stands for. Let's

0:44:39.560 --> 0:44:42.640
<v Speaker 2>talk about what all the other plans mean for next week, Darling.

0:44:42.880 --> 0:44:44.759
<v Speaker 1>We'll see