Empty seats in the once-heaving Hockenheim grandstands set alarm bells ringing in F1 last weekend. DIETER RENCKEN investigates the causes
Sunday's German Grand Prix was arguably the 2014 season's most thrilling round so far - certainly the most action-packed, with superb slo-mo replays bringing out the best of Formula 1 2014-style. Hockenheim's race featured overtaking up and down the order, with cars regularly battling into (and out of) corners three-abreast.
Lewis Hamilton fought his way to the podium from the back row for Mercedes, en route taking no prisoners, while Turn 1 spectators were treated to a spectacular but ultimately harmless barrel roll after Mercedes-powered pair Felipe Massa and Kevin Magnussen collided as the field funnelled into the first corner.
To crown it all, a German (Nico Rosberg), starting from pole position in a Mercedes, won the race to consolidate his grip on the title, while serial reigning champion Sebastian Vettel placed a fine fourth to finish as best non-Merc runner. All this within seven days of Germany's stunning success on FIFA's pitch.
Yet German Formula 1 fans voted with their feet, with turn-out on all three days being the circuit's worst ever for an F1 event. Indeed, Friday, when an estimated 6000 made their way through the stiles, was reminiscent of Istanbul's worst, while Saturday, although markedly better (by a factor of 300 per cent), failed (by far) to do Rosberg's pole justice.
Indeed, so conspicuous were spectators by their absence that during Friday's FIA press conference this writer posed the obvious question to Christian 'Toto' Wolff, Mercedes motorsport director. Here is his verbatim reply:
"Let's start with a positive question. It's not satisfying. If you compare Hockenheim Friday to Friday at Silverstone and Friday in Austria, it's a different world and we have to understand why that is. I'm not sure whether we have an exact number for Sunday already - you know, there are lots of people probably deciding at short notice, depending on the weekend - and we have to analyse the phenomenon. If the weekend continues like it does now, we need to think about it."
The German GP didn't lack entertainment for the spectators © LAT |
Apart from the fact that questions are, by their nature, neutral – their responses are either positive or negative – Mercedes, with its enormous Three Pointed Star-topped grandstand at the circuit, used on Saturday for an extremely swish Night of the Stars extravaganza – is clearly rattled. So the company should be, given its enormous financial and resource commitment to F1.
The weekend? Just 50,000 punters (maximum) experienced the race live. Worryingly, last year the Nürburgring – Germany's two circuits alternate, with Hockenheim hosting even years, in probably the most myopic deal struck with F1 tsar Bernie Ecclestone, ever – fared little better, attracting a similar crowd in the wake of the Eifel circuit's liquidation. Thus the problem is national, not unique to Hockenheim.
Overall attendance was by some distance the most disappointing of this year thus far, with only Malaysia (always lethargic, but compounded this year by the MH370 tragedy) and Bahrain (population/capacity constraints) faring worse. Even Spain, in the midst of a depression with a 35 per cent youth-unemployment factor, fared better despite national hero Fernando Alonso driving a recalcitrant Ferrari.
More worryingly, Hockenheim followed bumper paydays in Montreal, at the Red Bull Ring and Silverstone, all of which played to capacity crowds – despite much negativity about 'taxi cab driving' and lack of noise, peddled by such as Ferrari president Luca di Montezemolo and Ecclestone himself.
As of Wednesday, Hockenheim, located an 80-kilometre helicopter flight from the Mercedes-Benz HQ in Stuttgart, had managed to find just 45,000 takers for tickets. Georg Seiler, long-standing CEO of the Hockenheimring owned by the eponymous hamlet situated in southern Germany near Heidelberg, told this writer on the grid that official ticket sales had numbered 52,000.
Simultaneous estimates by three seasoned journalists 10 minutes before the start put the figure at 60 per cent of capacity. Given that local-born Seiler, employed by the circuit since the late 70s, is adamant Hockenheim's maximum capacity without temporary stands is 70,000, 60 per cent pans out at 42,000.
In fact, in an exclusive interview he stated that not even in its long-circuit configuration had Hockenheim accommodated over 70,000 spectators. Strange then, that during the halcyon Michael Schumacher years the circuit claimed attendances of over 110,000 despite the country then hosting two grands prix annually. Certainly, traffic issues and overcrowded campesites backed the veracity of those claims.
However, if Seiler is correct – promoters are notoriously optimistic where gates are concerned – then, to use a hackneyed phrase, around 10,000 punters arrived dressed as empty seats, or, worse, purchased one-day tickets at horrific cost within the last week, then failed to pitch despite free-flowing traffic and cool skies...
The old Hockenheim stretched out into the forests © LAT |
Internally, blame is placed on two factors: an amateurish (in the extreme) PR campaign, which, for example, offered an €11 (£8) discount per goal scored by Germany. The national team's 7-0 rout of Brazil set telephones ringing, at a loss of €77 (£56) per ticket sold. Still, given top-end tickets ran in at almost €600 (£450), the discount was scant consolation.
However, consider the plight of a family of four, faced with the dilemma of summer school holidays: Does Mr Father take said brood to a grand prix at a basic cost of €2400 plus travel plus accommodation (two nights minimum at steep prices) plus programme plus memorabilia, or flit to Spain (or Florida's Disneyland) for a week (or two), then watch the race on TV?
The answer is a no-brainer, and Germans are nothing if not brainy, with the added advantage of knowing the value of every single Euro for which they sweat more than any other nation in Europe. Yes, they have disposable income, but it is hard-earned, and therefore cherished.
Is it coincidental that Germany's two venues charge amongst the highest prices? Hardly: the Nurburgring's round was last year promoted in partnership with Formula One Management after the circuit plunged into liquidation and there was no viable alternative. As long-standing F1 fans know, where and when FOM is involved prices go nuclear.
Hockenheim? According to sources, a revenue-share deal was agreed with Hockenheim's city fathers three years back after stalemate over hosting fees was reached during the last round of extension negotiations – committing both parties to 2018 on an even-year basis. Thus FOM is on a slice of Hockenheim's action, and hence abject nervousness in the smoke-grey motorhome parked at the far right end of the paddock at the sight of empty seats...
Hockenheim shares the German GP with the Nurburgring © LAT |
To compound matters, F1's teams are rewarded according to contractual formulae which use as a base a percentage of F1's EBITA – earnings before interest, taxes, depreciation and amortisation – and as such every ticket (not) sold in Germany affects their respective bottom lines. Thus equally furrowed brows the length of the left side of the paddock, where team hospitality units were lined up.
However, were falling attendances in Germany – the nation whose good burghers invented the car and every form of internal combustion engine (Otto 4-stroke, Diesel and Wankel) embraced by mainstream motor makers – the only pointer to Deutschland's loss of interest in F1, matters would not be critical, for ticket pricing can be remedied.
True, the PR campaign was rated by many – including team bosses – as downright amateurish, with hardly a message being communicated in English or the languages of surrounding countries. If, after all, locals stay away, why not attract foreigners by whatever means? However, before being too harsh on said PR operation, consider that FOM's hosting fees left scant budget for promotion...
Then, Germany's strict compliance code decrees that corporates may no longer entertain as lavishly as they once did. However, this effect was greater at the top end (Paddock Club), although obviously a trickle-down effect exists.
Then, the World Cup, held in the run-up to the race, stole column inches as sports editors chased breaking news about the national team. Silverstone did not, of course, suffer such issues. Still, to wait until the final week before mounting a major news campaign points to bigger problems.
Austria's immaculately staged (and promoted) grand prix just four weeks before Hockenheim's race, too, had an effect. The Red Bull-owned circuit's catchment area includes southern Germany, and thus many German fans, attracted by lower ticket prices, a novel, more scenic circuit and simple variety, voted with their cars and headed south in June. Certainly, Germans galore were in evidence in Spielberg.
The Red Bull Ring set a standard for F1's spectator experience © LAT |
Then there is the utterly unfathomable rotation agreement: the ideal time to sell tickets to punters is when the feel-good factor is hottest, i.e. the day after the race. Circuits traditionally open sales for the following year immediately after the current event. Hockenheim does not, though, have that luxury – save if it wishes to aid the Nurburgring, with which it is at war.
However, which fan on Monday morning considered booking for Hockenheim's 2016 race when not even next year's Eifel fixture is secure? Indeed, Monday Musings in Hockenheim centred on Mayor Dieter Gummer pulling the plug once and for all...
All this is a far cry from a dozen years ago, when Germany hosted two sell-out grands prix, plus had fans flock across to Austria, Hungary and further afield as they sought F1 fixes. Every circuit banked on the arrival of the Red Army Faction – Michael Schumacher's fan club – which block-booked whole grandstands. When did one last see such mass hysteria; when did hotels last have German menus during race weekends?
Germany's dwindling TV ratings point to a greater problem: on a year-to-date basis, free-to-air broadcaster RTL has recorded a 20 per cent loss – the same deficit as experienced by Hockenheim. Indeed, so concerned are RTL's directors that they sent a delegation to Canada after numbers dropped 40 per cent for Monaco, once the broadcaster's biggest draw card.
When both live attendance and (free) TV are similarly hit it is clear Germany has fallen out of love with F1. This in turn begs the question whether Germany was ever really in love, or simply adored Michael Schumacher, for prior to his arrival the country had but two grand prix winners: Wolfgang von Trips (two wins) and Jochen Mass (awarded victory in a shortened race), the last-named incidentally a non-arrival as a steward this weekend past.
Saliently Mercedes switched to F1 after Schumacher made his debut, while BMW went cold when it realised Ralf was the best it could attract. The VW Group? As far from entering F1 as ever despite gazillions spent on the World Rally Championship and World Endurance Championship (the latter with Audi and Porsche).
A former German karate campaigner with two world cups and two world championships to her name this weekend made the observation that her country has a peculiar sports psyche, embracing its first superstar in any genre – then that's it.
Mass didn't capture German fans' imagination © LAT |
Whether it be boxing (Max Schmelling), men's tennis (Boris Becker), women's tennis (Steffi Graf), cycling (Jan Ullrich), golf (Bernard Langer) or F1 (Schumacher), Germans threw themselves into the sports fervently, idolising their stars.
Variously boxing gymnasiums, tennis clubs, cycling associations, golf courses and go-kart tracks sprang up across the country, with fathers showering kids with gloves, racquets, bicycles, golf clubs and karts as the case may be. Then? Interest lost; on to the next sport and superstar.
Football remains an exception: it is the national sport, with the national team bringing unifying pride to this once-fragmented country.
Germany worships trailblazers in whatever endeavour, with their successors being also-rans unworthy of idolisation. Hence a Martin Kaymer will never achieve the status afforded Langer regardless of results; who recalls Michael Stich won Wimbledon just six years after Becker? Ullrich's 1997 Tour de France victory precipitated a cycling boom in Germany, but who recalls the three German cyclists to have won stages this year?
Sebastian Vettel and Nico Rosberg are similarly overshadowed by Schumacher's status as the first German world champion – despite SebVet statistically outranking his illustrious predecessor in a number of categories.
Clearly F1, and more particularly Mercedes-Benz, should be worried about Hockenheim's empty stands – but of greater concern are the sport's dropping TV audiences (down 30 per cent over five years).
CVC Capital Partners, de facto owner of the sport's commercial rights, last week secured a billion-dollar loan to pay dividends to itself and its fund partners. Observers believe this to be the fund's big payday ahead of an exit within 12 months.
Oh that just a fraction of that billion-dollar windfall is spent on a far-reaching global market-research programme to establish just where the sport has gone wrong under its ownership.
Empty seats in the once-heaving Hockenheim grandstands set alarm bells ringing in F1 last weekend. DIETER RENCKEN investigates the causes
Sunday's German Grand Prix was arguably the 2014 season's most thrilling round so far - certainly the most action-packed, with superb slo-mo replays bringing out the best of Formula 1 2014-style. Hockenheim's race featured overtaking up and down the order, with cars regularly battling into (and out of) corners three-abreast.
Lewis Hamilton fought his way to the podium from the back row for Mercedes, en route taking no prisoners, while Turn 1 spectators were treated to a spectacular but ultimately harmless barrel roll after Mercedes-powered pair Felipe Massa and Kevin Magnussen collided as the field funnelled into the first corner.
To crown it all, a German (Nico Rosberg), starting from pole position in a Mercedes, won the race to consolidate his grip on the title, while serial reigning champion Sebastian Vettel placed a fine fourth to finish as best non-Merc runner. All this within seven days of Germany's stunning success on FIFA's pitch.
Yet German Formula 1 fans voted with their feet, with turn-out on all three days being the circuit's worst ever for an F1 event. Indeed, Friday, when an estimated 6000 made their way through the stiles, was reminiscent of Istanbul's worst, while Saturday, although markedly better (by a factor of 300 per cent), failed (by far) to do Rosberg's pole justice.
Indeed, so conspicuous were spectators by their absence that during Friday's FIA press conference this writer posed the obvious question to Christian 'Toto' Wolff, Mercedes motorsport director. Here is his verbatim reply:
"Let's start with a positive question. It's not satisfying. If you compare Hockenheim Friday to Friday at Silverstone and Friday in Austria, it's a different world and we have to understand why that is. I'm not sure whether we have an exact number for Sunday already - you know, there are lots of people probably deciding at short notice, depending on the weekend - and we have to analyse the phenomenon. If the weekend continues like it does now, we need to think about it."
The German GP didn't lack entertainment for the spectators © LAT |
Apart from the fact that questions are, by their nature, neutral – their responses are either positive or negative – Mercedes, with its enormous Three Pointed Star-topped grandstand at the circuit, used on Saturday for an extremely swish Night of the Stars extravaganza – is clearly rattled. So the company should be, given its enormous financial and resource commitment to F1.
The weekend? Just 50,000 punters (maximum) experienced the race live. Worryingly, last year the Nürburgring – Germany's two circuits alternate, with Hockenheim hosting even years, in probably the most myopic deal struck with F1 tsar Bernie Ecclestone, ever – fared little better, attracting a similar crowd in the wake of the Eifel circuit's liquidation. Thus the problem is national, not unique to Hockenheim.
Overall attendance was by some distance the most disappointing of this year thus far, with only Malaysia (always lethargic, but compounded this year by the MH370 tragedy) and Bahrain (population/capacity constraints) faring worse. Even Spain, in the midst of a depression with a 35 per cent youth-unemployment factor, fared better despite national hero Fernando Alonso driving a recalcitrant Ferrari.
More worryingly, Hockenheim followed bumper paydays in Montreal, at the Red Bull Ring and Silverstone, all of which played to capacity crowds – despite much negativity about 'taxi cab driving' and lack of noise, peddled by such as Ferrari president Luca di Montezemolo and Ecclestone himself.
As of Wednesday, Hockenheim, located an 80-kilometre helicopter flight from the Mercedes-Benz HQ in Stuttgart, had managed to find just 45,000 takers for tickets. Georg Seiler, long-standing CEO of the Hockenheimring owned by the eponymous hamlet situated in southern Germany near Heidelberg, told this writer on the grid that official ticket sales had numbered 52,000.
Simultaneous estimates by three seasoned journalists 10 minutes before the start put the figure at 60 per cent of capacity. Given that local-born Seiler, employed by the circuit since the late 70s, is adamant Hockenheim's maximum capacity without temporary stands is 70,000, 60 per cent pans out at 42,000.
In fact, in an exclusive interview he stated that not even in its long-circuit configuration had Hockenheim accommodated over 70,000 spectators. Strange then, that during the halcyon Michael Schumacher years the circuit claimed attendances of over 110,000 despite the country then hosting two grands prix annually. Certainly, traffic issues and overcrowded campesites backed the veracity of those claims.
However, if Seiler is correct – promoters are notoriously optimistic where gates are concerned – then, to use a hackneyed phrase, around 10,000 punters arrived dressed as empty seats, or, worse, purchased one-day tickets at horrific cost within the last week, then failed to pitch despite free-flowing traffic and cool skies...
The old Hockenheim stretched out into the forests © LAT |
Internally, blame is placed on two factors: an amateurish (in the extreme) PR campaign, which, for example, offered an €11 (£8) discount per goal scored by Germany. The national team's 7-0 rout of Brazil set telephones ringing, at a loss of €77 (£56) per ticket sold. Still, given top-end tickets ran in at almost €600 (£450), the discount was scant consolation.
However, consider the plight of a family of four, faced with the dilemma of summer school holidays: Does Mr Father take said brood to a grand prix at a basic cost of €2400 plus travel plus accommodation (two nights minimum at steep prices) plus programme plus memorabilia, or flit to Spain (or Florida's Disneyland) for a week (or two), then watch the race on TV?
The answer is a no-brainer, and Germans are nothing if not brainy, with the added advantage of knowing the value of every single Euro for which they sweat more than any other nation in Europe. Yes, they have disposable income, but it is hard-earned, and therefore cherished.
Is it coincidental that Germany's two venues charge amongst the highest prices? Hardly: the Nurburgring's round was last year promoted in partnership with Formula One Management after the circuit plunged into liquidation and there was no viable alternative. As long-standing F1 fans know, where and when FOM is involved prices go nuclear.
Hockenheim? According to sources, a revenue-share deal was agreed with Hockenheim's city fathers three years back after stalemate over hosting fees was reached during the last round of extension negotiations – committing both parties to 2018 on an even-year basis. Thus FOM is on a slice of Hockenheim's action, and hence abject nervousness in the smoke-grey motorhome parked at the far right end of the paddock at the sight of empty seats...
Hockenheim shares the German GP with the Nurburgring © LAT |
To compound matters, F1's teams are rewarded according to contractual formulae which use as a base a percentage of F1's EBITA – earnings before interest, taxes, depreciation and amortisation – and as such every ticket (not) sold in Germany affects their respective bottom lines. Thus equally furrowed brows the length of the left side of the paddock, where team hospitality units were lined up.
However, were falling attendances in Germany – the nation whose good burghers invented the car and every form of internal combustion engine (Otto 4-stroke, Diesel and Wankel) embraced by mainstream motor makers – the only pointer to Deutschland's loss of interest in F1, matters would not be critical, for ticket pricing can be remedied.
True, the PR campaign was rated by many – including team bosses – as downright amateurish, with hardly a message being communicated in English or the languages of surrounding countries. If, after all, locals stay away, why not attract foreigners by whatever means? However, before being too harsh on said PR operation, consider that FOM's hosting fees left scant budget for promotion...
Then, Germany's strict compliance code decrees that corporates may no longer entertain as lavishly as they once did. However, this effect was greater at the top end (Paddock Club), although obviously a trickle-down effect exists.
Then, the World Cup, held in the run-up to the race, stole column inches as sports editors chased breaking news about the national team. Silverstone did not, of course, suffer such issues. Still, to wait until the final week before mounting a major news campaign points to bigger problems.
Austria's immaculately staged (and promoted) grand prix just four weeks before Hockenheim's race, too, had an effect. The Red Bull-owned circuit's catchment area includes southern Germany, and thus many German fans, attracted by lower ticket prices, a novel, more scenic circuit and simple variety, voted with their cars and headed south in June. Certainly, Germans galore were in evidence in Spielberg.
The Red Bull Ring set a standard for F1's spectator experience © LAT |
Then there is the utterly unfathomable rotation agreement: the ideal time to sell tickets to punters is when the feel-good factor is hottest, i.e. the day after the race. Circuits traditionally open sales for the following year immediately after the current event. Hockenheim does not, though, have that luxury – save if it wishes to aid the Nurburgring, with which it is at war.
However, which fan on Monday morning considered booking for Hockenheim's 2016 race when not even next year's Eifel fixture is secure? Indeed, Monday Musings in Hockenheim centred on Mayor Dieter Gummer pulling the plug once and for all...
All this is a far cry from a dozen years ago, when Germany hosted two sell-out grands prix, plus had fans flock across to Austria, Hungary and further afield as they sought F1 fixes. Every circuit banked on the arrival of the Red Army Faction – Michael Schumacher's fan club – which block-booked whole grandstands. When did one last see such mass hysteria; when did hotels last have German menus during race weekends?
Germany's dwindling TV ratings point to a greater problem: on a year-to-date basis, free-to-air broadcaster RTL has recorded a 20 per cent loss – the same deficit as experienced by Hockenheim. Indeed, so concerned are RTL's directors that they sent a delegation to Canada after numbers dropped 40 per cent for Monaco, once the broadcaster's biggest draw card.
When both live attendance and (free) TV are similarly hit it is clear Germany has fallen out of love with F1. This in turn begs the question whether Germany was ever really in love, or simply adored Michael Schumacher, for prior to his arrival the country had but two grand prix winners: Wolfgang von Trips (two wins) and Jochen Mass (awarded victory in a shortened race), the last-named incidentally a non-arrival as a steward this weekend past.
Saliently Mercedes switched to F1 after Schumacher made his debut, while BMW went cold when it realised Ralf was the best it could attract. The VW Group? As far from entering F1 as ever despite gazillions spent on the World Rally Championship and World Endurance Championship (the latter with Audi and Porsche).
A former German karate campaigner with two world cups and two world championships to her name this weekend made the observation that her country has a peculiar sports psyche, embracing its first superstar in any genre – then that's it.
Mass didn't capture German fans' imagination © LAT |
Whether it be boxing (Max Schmelling), men's tennis (Boris Becker), women's tennis (Steffi Graf), cycling (Jan Ullrich), golf (Bernard Langer) or F1 (Schumacher), Germans threw themselves into the sports fervently, idolising their stars.
Variously boxing gymnasiums, tennis clubs, cycling associations, golf courses and go-kart tracks sprang up across the country, with fathers showering kids with gloves, racquets, bicycles, golf clubs and karts as the case may be. Then? Interest lost; on to the next sport and superstar.
Football remains an exception: it is the national sport, with the national team bringing unifying pride to this once-fragmented country.
Germany worships trailblazers in whatever endeavour, with their successors being also-rans unworthy of idolisation. Hence a Martin Kaymer will never achieve the status afforded Langer regardless of results; who recalls Michael Stich won Wimbledon just six years after Becker? Ullrich's 1997 Tour de France victory precipitated a cycling boom in Germany, but who recalls the three German cyclists to have won stages this year?
Sebastian Vettel and Nico Rosberg are similarly overshadowed by Schumacher's status as the first German world champion – despite SebVet statistically outranking his illustrious predecessor in a number of categories.
Clearly F1, and more particularly Mercedes-Benz, should be worried about Hockenheim's empty stands – but of greater concern are the sport's dropping TV audiences (down 30 per cent over five years).
CVC Capital Partners, de facto owner of the sport's commercial rights, last week secured a billion-dollar loan to pay dividends to itself and its fund partners. Observers believe this to be the fund's big payday ahead of an exit within 12 months.
Oh that just a fraction of that billion-dollar windfall is spent on a far-reaching global market-research programme to establish just where the sport has gone wrong under its ownership.