One of the potential disadvantages for the Formula 1 business is the growing interest of car manufacturers in electric vehicles. Kristian Heugh, manager of Morgan Stanley's Global Opportunity Fund, believes that competition among streaming platforms will increase the value of sports rights.
Morgan Stanley's fund has shown interest in F1, opening a position in Liberty Media Corp., the owner of Formula 1. According to Heugh, F1 is possibly one of the most unique assets in the world, with significant audience growth, especially in the United States, surpassing other star sports in terms of reach.
Formula 1 has managed to expand its audience in the United States in recent years, with successful events like the Las Vegas Grand Prix in 2023, which attracted around 300,000 people. Additionally, the acquisition of the MotoGP World Championship motorcycle league by F1 for $3.8 billion is in process, although it is being investigated by the European Union.
Heugh noted that F1 has additional attractions, such as growth prospects in the US market, with three races being held this year. F1 is also committing to sustainability, with plans to achieve net-zero carbon emissions by 2030 and the introduction of a new hybrid system next year.
Despite the potential risks to the F1 business, such as a decrease in fan engagement, Heugh is confident that the sport will benefit from its young viewer base and growth on social media. The growing popularity of Formula 1 in the United States has attracted investment from the Morgan Stanley fund.
