Formula One: From Humble Beginnings to Billion Dollar Business

The first Formula One world championship raceTechnological advancements continued to be
took place at Silverstone race track in Britain inmade throughout the late 70's and 80's including
1950 and was won by Italian Giuseppe Farina, whothe introduction and subsequent banning of
only just managed to defeat his Argentine teamturbocharged engines. Perhaps one of the more
mate Juan Manual Fangio. However, Fangio wonsignificant developments were electronic driver
the championship five times over the next tenaids, with the first active suspension system being
years, earning him the title of "grand master" ofused by Lotus in 1982, followed by a progression
Formula One from many motor sport enthusiasts.to semi-automatic gearboxes and traction control.
During this initial period, Formula One was almostDespite complaints that new technologies were
entirely dominated by teams run by cardetermining the outcome of races more than the
manufacturers, including Ferrari and Mercedesdrivers' skill, a move to ban the new electronic
Benz. However, over the next 20 years the sportaids proved fruitless as it was discovered that a
of Formula One changed dramatically with theban on such aids was hard to police.
introduction of not only engineering innovationsThe teams of McLaren and Williams dominated
such as fuel injection and aluminium chassis butthroughout the 80s and into the 90s, with the
also instances of sponsorship in the sport - therivalry between F1 legends Ayrton Senna and
first being when Lotus painted Imperial TobaccoAlain Prost capturing fans' attention all over the
livery on their cars in 1968. Lotus was also theworld until Prost's retirement in 1993. Senna's
first team to introduce ground effectdeath during the San Marino Grand Prix in 1994
aerodynamics that helped the cars increase theiralso made Formula One authorities look more
cornering speeds by providing tremendous downclosely at driver safety standards - a move which
force.has ensured no further driver fatalities in the
Significant business decisions were made duringsport since that day.
the 1970s, when a man by the name of BernieThe dawn of the new millennium was also a new
Ecclestone rearranged the way Formula One'sdawn for Formula One as Michael Schumacher, a
commercial rights were managed. Ecclestoneskilful German driver, began his dominance of the
gained a seat on the Formula One Constructorssport, eventually winning an unprecedented five
Association following his purchase of the Brabhamconsecutive driver championships with his team,
team in 1971, before becoming the president ofFerrari, picking up six constructers championships.
the association in 1978.During this time racing authorities made a number
Ecclestone began offering Formula One as aof changes to the rules regarding the qualifying
package to circuit owners they could either takeformat for races, the points scoring system and
or leave, when previously the circuit ownersmore besides. These changes were designed to
negotiated with the teams individually andincrease safety and combat the spiralling cost of
controlled the teams' income. In return for thisFormula One.
package, almost all circuit owners had toBut, despite worryingly low viewing figures for
surrender trackside advertising, thus beginning theracing seasons in the early 2000s, the future of
big money business of Formula One sponsorshipthe sport looks bright, with Bernie Ecclestone
that has seen tobacco companies, car credit andorganising a number of races in new countries,
consumer finance companies and oil companiesexpanding Formula One into new areas of the
among numerous corporate sponsors all spendingglobe and attracting new teams and drivers, all
millions of pounds to have their names and logoslooking to pit their wits against the big boys of
on the cars and alongside the racetrack.the sport.