Business As Usual

Launching the world championships of any sport is a huge financial risk for investors, especially in today's economic climate but one man is determined to prove that it can be done.

With the world's stock markets in crisis and the UK plunging into recession, it is rare to hear positive news of any business, let alone one that should be joining the ranks of other motor sports by slashing costs. But Stephane Ratel, Chief Executive Officer of the Stephane Ratel Organisation (SRO), has his sights set on launching the FIA GT1 World Championship in 2010. So how does a motor sport business grow while oil prices rise and people curb their spending?

Ratel says: “We have not overstretched ourselves or put ourselves into debt, so we have a really strong position right now. Our feet are on the ground and we have been reducing our costs to make sure we stay ahead. At the moment we haven't felt the impact of the down-turn in the world economy, but this may change.”

The development of the FIA GT1 World Championship follows years of hard work, negotiations and promotion. Its launch is taking place in 2010, sitting alongside Formula One, World Rally and World Touring Cars as the fourth full FIA World Championship race. New technical regulations for GT1 and GT2 cars wanting to compete in these races was recently announced by the World Motor Sport Council and more details will be released. As well as visiting the traditional world circuits, the SRO team is looking to emerging markets to explore their potential. Already a Russian race, due to take place in the future Eurasia Autodrome Domodedovo, situated near the Domodedovo Airport 35 km south of Moscow, has been confirmed. Ratel says: “We have raced on five continents; I was the first to race in China in 1994 and again in Dubai; opening new markets is our speciality and we are working on a world calender for 2010. We know we have a good product with a good return.”

Part of the success of SRO could be attributed to its talent in working with these new markets and looking for alternative approaches for getting teams and manufacturers involved in what is essentially a very expensive sport. GT racing has gained a foothold in South America and is becoming increasingly popular. Indeed, the final GT1 FIA GT Championship race of the 2008 season is being held on an unique track in Argentina that has been rebuilt specifically for this race. Half of the course runs through an extinct volcano in San Luis.

Another new development within the SRO compound is the launch of a new form of GT racing for the 2009 season with new company KTM and its Customer Racing Service. The introduction of the KTM Customer Racing Service will provide a cheaper and easier entry into motor sport racing than the current established routes, giving drivers a serious alternative to formula (single-seater) racing. The KTM CRS scheme will run in the GT4 racing category, with the typical cost of running a X-Bow car expected to be around 3,000 euros per race or 100,000 euros per season. This scheme will supply a KTM X-Bow sports car, full support and hospitality. Season holders can take part in eight races, six at European level and two at British national level. The X-Bow was successfully trialled during the 2008 racing season, scoring a pole position in GT4, numerous podium finishes and victories in the GT4 Sports Light European Cup.

GT and sports car racing has had a healthy growth since SRO took the helm 15 years ago. SRO also manages a number of other series aside from the FIA GT Championship, including the Le Mans Endurance Series, FFSA Super Série, and the British F3 Championships. Ratel now has offices in the UK, France, Belgium, Germany and Latin America. There certainly has not been a lack of investors despite the current economic climate, with the recent signing of a number of sponsorship deals for the two leading British motor racing championships. SRO has secured American investment, signing a three-year title sponsorship and tyre supply deal with Cooper Tires for the British F3 International Series. Avon Tyres has extended its title sponsorship of the British GT Championship by three years, while insurance specialists Aon have extended their contract to the end of the 2009 racing season.

What makes GT racing a more sustainable motor sport is the cars. Race teams and manufacturers of GT cars are not expected to plough millions of pounds into the development of a car filled with pioneering technology. Instead race cars chassis are taken straight off the manufacturers' production lines. And here lies the secret of GT's success. Not only will elements of technology developed on the racing circuit filter down through the divisions of GT racing, but conversely technology used in everyday cars will finds its way on to the racing circuit. It will not be too long before the rise in hybrid and 'environmentally friendly' road car technologies will be a regular addition to sports car and GT racing.

Sports car and particularly GT racing have proven to be an attractive option to the automotive industry. Car manufacturers wanting to raise their corporate profile and / or PR their individual car brands are able to obtain a high level of media attention this way. The benefits of choosing to compete in GT racing is that manufacturers' initial outlay and running costs are lower than other professional motor sports. Meanwhile the public is able to see the link between the track car and their potential road going purchases driven in an exciting atmosphere.

“In each category we have around 12 different types of cars competing in a race. This is the attraction for the audience, to see the diversity of the cars in their looks and performance, “ says Ratel. “We are racing aspirational cars from the most famous brands in the world. Watching V10 and V12 cars lined up at the start, ready to race, is an incredible thing. This is entertainment, and there is something about the glamour, the prestige and the uncertainty of who will win that makes the races very exciting.”

The focus in sports car and GT racing is very much on the cars and their performance. But despite the many positives, Ratel is still cautious about the future.

“It may be we will have to take some of the money out of promotion and put it back into the teams so that we can ensure we have 25 to 30 cars on the track for each race and that each team is running at its full potential. We don't know what will happen yet. In the future budgets may be harder to find, but we are well-priced and a completely independent company. We believe in our product and have a good return.”

Looking at GT racing's development over the last 15 years, there have been a number of significant changes, including the drivers. In previous years the drivers tended to be older amateurs. Now a different market is taking over and young professional drivers are taking their place, especially as the rising costs of becoming a Formula One driver are forcing many potential drivers to look elsewhere.

“Drivers who aspire to be in Formula One will still take that route,” says Ratel. “But there are others who, for a variety of reasons, are not able to reach that far so look for other possibilities. GT racing is one of those possibilities and we are welcoming more drivers than ever to .”

One of the turning points of GT was the short-lived Ratel / Eccelstone partnership that led to Eurosport televising GT for the Eurosport Super Racing Weekend in 2001, where the French GT Championship attracts grids of over 55 cars. Eurosport remained FIA GT Championship's media partner until 2006 when it broke away and began working with a number of sports channels across Europe, including Sky. Ratel says: “This gave us a wider audience, more viewers and more interest in the sport.”

This increased interest in GT racing has led to greater possibilities for SRO and Ratel is aiming for the top spot. With countries willing to build or rebuild circuits specifically for the GT races, as seen with Russia and Argentina, it is clear SRO is not the only one reaping the benefits of this niche sport market. The input into local economies that hold a GT race is significant enough for nations to invest in attracting the sport to their particular country, even with rising costs and recessions. The growing number of fans across the globe is set to rise, and by 2010, there will be a significant following behind GT racing.

Ratel says: “And I believe there is room for a second motor sport race to sit alongside Formula One. It could be Prototype (sportscar) racing, it could be us and I think in ten years' time we will see who is the winner.”