Indy 500 Alonso

Alonso racing in the Indy 500 benefits Liberty Media more than Fernando, McLaren or Honda!

Does Alonso’s Indy 500 drive represent personal ambition or promotional genius?

Demonstrating amazing driving skills, two-time world champion Fernando Alonso qualified fifth for the Indianapolis 500 having never driven on an oval track before. Averaging 231.3mph over his four-lap qualifying run, Fernando sits in middle of the ‘fast nine’ drivers that earned the right to contest pole position.

Fernando is an amazing driver, many consider him the best all-round driver on the F1 grid, but why is he missing the Monaco GP to contest America’s most prestigious motor race?

The party line is that McLaren and Honda are allowing their top driver to miss a race to further his ambition of winning motor sport’s Triple Crown – Monaco Grand Prix, Indianapolis 500 and Les Mans. Alonso will be driving a Honda in McLaren livery and his one race sabbatical oils the wheels of a continued relationship between all parties.

Alonso’s contract with McLaren expires at the end of the 2017, given his age and little or no change expected in technical regulations, there is little chance he will re-sign with McLaren for 2018 and beyond.

The truth is that Fernando’s entry into the Indy 500 furthers the commercial interests of Liberty Media Corporation primarily. Formula One’s new owners have every intention of expanding into the US market. In an interview with the BBC in January the new chairman Chase Carey said:

“We are looking at some new places that we think they are real opportunities to expand and grow the sport – like the US.”

A strong debut performance by a first time driver could make the US public question where the world’s best drivers ply their trade. Last year’s winner Alex Rossi was an also ran when competing in F1 but managed to win the Indy 500 at his first attempt.

Liberty Media are planning to expand the number of F1 races held in the US and NBC’s broadcasting rights expire at the end of 2017. A strong performance by Fernando creates an audience for any new races and the US market.

The upside for Liberty Media is obvious but questions need to be asked:

What is in it for Honda?

What is in it for Fernando Alonso?

What is in it for McLaren?

Honda are struggling in F1, conservative estimates think that the Honda engine is 100 bhp down on the units produced by both Mercedes and Ferrari. Yet in America’s Indy Series the Honda powered cars are competitive. A strong performance for Fernando is a strong performance for Honda. Monaco represents the best chance for Honda to score points though so missing it could impact the season’s final outcome. Given that teams are paid in relation to their finishing position, why would Honda sacrifice potential points to appease a driver that in all likelihood will be leaving?

Suzuka – the home of the Japanese Grand Prix is owned by Honda. Liberty Media have it in their power to offer a preferential contract that keeps a Grand Prix in Japan and keeps it at Suzuka. This could more than off-set any financial losses they incur by losing their number one driver for a single race.

Alonso’s potential is being wasted and this can be seen by the teams, the drivers, the fans and F1’s new owners. Bernie Ecclestone was not beyond influencing driver selection, he single-handedly kept Felipe Massa in a race seat as he considered Brazil both an important and historic audience. Liberty Media are primarily the promoters of F1, their influence can assist Fernando driving for Mercedes or Red Bull next season. Fernando has been wasting his talents at McLaren and has burnt bridges at Ferrari – hopefully assisting the new owners in this US promotion will get him back to the front of the grid.

McLaren have the least to gain through this exercise, losing vital points could severely impact their revenue streams. The only plus side for them in this Indy 500 exercise is the promotion of their road going cars in the US. A strong performance could galvanize the former all-conquering McLaren Honda partnership, yet good relations with the new owners may be the reward McLaren are seeking. McLaren still hold a seat on the F1 Strategy Group that their performance over recent years does not merit. Liberty Media are placing greater emphasis on this group as a focus for governance, losing the seat could reduce the possibility of McLaren regaining a competitive car. Allowing Alonso this sabbatical could grease the wheels and help maintain the seat at the big table they no longer deserve based upon performance.

The 2018 F1 calendar is still a work in progress, it may contain more than on grand prix in the US. Chase Carey has expressed a desire for street races in New York, Las Vegas, Los Angeles or Miami. The 2015 US Grand Prix in Austin Texas was the most watched race of the season according to research firm Repucom, they report that the race at the Circuit of the Americas was watched by 96.1 million people.

Liberty Media want to build upon such popularity and create a regional series of races, Sean Bratches F1’s new Commercial Director revealed to Sky Sorts F1’s Martin Brundle:

“In a perfect world we’d like to have all the races take place in a region and then move to the next region.”

With the established race in Canada, the new race in Mexico and the current US GP in Austin the region offers scope for expansion. Liberty Media have the resources to crack the American market – Fernando Alonso racing in the Indy 500 is their first move in doing what even Bernie Ecclestone failed to do.