Motor Sports - UK - February 2007

TABLE OF CONTENTS

• Issues in the Market
• Main issues
• Definitions
• Abbreviations
• Market in Brief
• Revenue up as admissions recover
• Consolidation continues apace
• Formula 1 has substantial following
• Dual challenges for the future
• Internal Market Environment
• Key points
• A trend of waning interest?
  • Figure 1: Interest in named sports/pastimes among UK adults, 2002-06
• A sport with a strong male bias
  • Figure 2: Interest in named sports/pastimes among UK adults, by gender, 2006
• Largely a spectator sport...
  • Figure 3: Regular participation in sports, 2002-06
• ...but numbers of competitors continue to grow
  • Figure 4: Trends in the number of UK competition licences by type, 2001-05
• Numbers paying to watch recover
  • Figure 5: Paid to watch sporting events, 2002-06
• One of the most televised sports
  • Figure 6: TV coverage of motor sports compared with other sports, 2001-05
• Non-terrestrial channels dominate coverage
  • Figure 7: TV coverage of motor sports compared with other sports by channel, 2005
• F1 Racing sales drop reflects waning popularity of Formula 1
  • Figure 8: Leading sports consumer magazine circulation, 2005/06
• Autosport top weekly but sales also fall
• Motor Sport targets historic scene
• British drivers' success
• The growth of track days
  • Figure 9: Trends in the number of track days*, 2001-06
• Popularity falls off slightly
• Cost of admission
  • Figure 10: Cost of admission for selected UK motor sports events, 2006
• Major meetings -- poor value?
• Nostalgia -- a growth market
  • Figure 11: Selected leading historic motor sport events in the UK, 2007
• Anti-noise campaigners
• Broader Market Environment
• Key points
• An expensive pastime
  • Figure 12: Trends in personal disposable income and consumer expenditure, 2001-11
• Population trends not favourable for motor sport
  • Figure 13: Trends in the UK population by age, 2001-11
• Spending power of visitors set to grow
  • Figure 14: Trends in the adult population* by socio-economic group, 2001-11
• Sun shines on the industry...
  • Figure 15: Trends in sunshine and rainfall in England, Scotland and Wales, 2001-06
• ...but operators don't want it too hot
• Competitive Context
• Key points
  • Figure 16: Consumer expenditure on selected leisure activities, 2001-06
• Competing against sports and other 'days out'
• A niche market in the wider leisure context
• Strengths and Weaknesses in the Market
• Strengths
• Good value
• Broad range of events
• The thrill
• The glamour
• Weaknesses
• Weather -- the unpredictable element
• Problems with visibility
• Sound-off on the horizon?
• Infrastructure lacking
• Lacking in family appeal?
• Market Size and Forecast
• Key points
• A £55 million market
  • Figure 17: Market size and forecast* of UK motor sports, by value, 2001-11
• Revenues outperform admissions
  • Figure 18: Market size and forecast* of UK motor sports, by volume and avearge spend, 2001-11
• The state of play in 2006
• Future market performance
• Encouraging increased spending
• Attracting new spectators
• Factors incorporated in the forecast
• Segment Performance
• Key points
• Spending vulnerable to economic fluctuations
  • Figure 19: Breakdown of estimated expenditure on attending motor sports events, 2001-05
• Ticket revenue grows on back of steady price rises
• Programme sales dip
• Catering: could do better
• Market Share
• Grand Prix helps Silverstone dominate
  • Figure 20: Estimated motor sports event consumer revenue, by operator, 2002-06
• Companies and Products
• Key points
• Industry Structure
  • Figure 21: Leading operators of motor sports venues, by number of events, 2006
  • Figure 22: Leading UK motor sports venues and their locations, 2006
  • Figure 23: Competition events* by type, 2001-05
• MotorSport Vision Ltd
• New company performing well
  • Figure 24: Financial performance of MotorSport Vision Ltd, 2004*
• Brands Hatch receives bulk of investment
• Revamp for Snetterton
• Infrastructure and safety improvements at other circuits
• Top-flight series at MSV circuits
• British Automobile Racing Club Ltd
• Mallory acquisition boosts revenues but core business also strong
  • Figure 25: Financial performance of British Automobile Racing Club Ltd, 2004-05
• Noise limits restrict activity at Thruxton
• Silverstone Circuits Ltd
• Grand Prix not reflected in 2005 results
  • Figure 26: Financial performance of Silverstone Circuits Ltd, 2005
• Grand Prix proves a headache
• Circuit also hosts other major series
• Donington Park Leisure Ltd
• A mixed year in 2005
  • Figure 27: Financial performance of Donington Park Leisure Ltd, 2004-05
• MotoGP heads the calendar
• Continuing investment programme
• Goodwood Road Racing Company
• Turnover, profit and margins show strong growth
  • Figure 28: Financial performance of Goodwood Road Racing Company, 2004-05
• Attention to detail pays off
• Rockingham Motor Speedway Ltd
• Losses worsen in 2005
  • Figure 29: Financial performance of Rockingham Motor Speedway Ltd, 2004-05
• Attracting bigger series a priority
• Building business in quiet times
• Branching out into exhibitions
• Knockhill Racing Circuit Ltd
• Brand Communication and Promotion
• Key points
• MSV leads the pack in 2006
  • Figure 30: Expenditure on advertising of motor sports events and venues, by selected leading operators, 2002-06
• A focus on local or regional spending
• Internet plays important role
• PR activity complements paid-for media
• The Consumer -- Who Watches?
• Key points
• Formula 1 still heads the grid
  • Figure 31: Motor sports watched in the last 12 months, November 2006
• Interest in most popular motor sports -- demographic analysis
  • Figure 32: Most popular motor sports watched in the last 12 months, by demographic sub-group, November 2006
• It's a man thing...
• ...but an age thing too
• Racing for the masses
• F1 and rally fans online
• Interest in next-most popular motor sports -- demographic analysis
  • Figure 33: Next-most popular motor sports watched in the last 12 months, by demographic sub-group, November 2006
• Historic racing has an older appeal
• Number of motor sports watched
  • Figure 34: Number of different types of motor sport watched in the last 12 months, November 2006
• Most fans are single-minded
  • Figure 35: Motor sports watched in the last 12 months, by number of different types of motor sport watched, November 2006
• Who watches the most motor sports?
  • Figure 36: Number of different types of motor sport watched in the last 12 months, by demographic sub-group, November 2006
• The Consumer -- Enthusiasm for Motor Sports
• Key points
• A fifth are avid or frequent watchers
  • Figure 37: Interest in motor sport, November 2006
• Enthusiasm for motor sports -- demographic analysis
  • Figure 38: Interest in motor sport, by demographic sub-group, November 2006
• Older fans the most enthusiastic
• Women tune in occasionally
• Older women less interested
• Motor sports watched by enthusiasm for motor sport
  • Figure 39: Motor sports watched in the last 12 months, by interest in motor sport, November 2006
• F1 fans disillusioned