“Ticket sales for the Miami Dolphins are about 25 per cent higher than for an entire NFL season,” says Miami Dolphins CEO Tom Garfinkel in The Joey Pomp Show podcast about the impressive Formula One figures in the Sunshine State of Florida.
NFL American football is the number one sport in the US, and yet the organisers say they have managed to turn the pinnacle of motorsport around Dolphins Stadium into a real money-spinner.
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It’s important to remember that sales don’t equal profit. The goals of the Miami Dolphins and the organisers of a Formula 1 race are different. The NFL team is investing to win the Super Bowl, but the infrastructure for the games is already in place.
Bringing Formula 1 to North Miami is a business deal for organisers, but a race track and event facility needs to be built out of the ground. That costs a lot of money.
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F1 a regular fixture in Miami
The Miami Grand Prix is set to become a regular fixture on the US sports calendar. The inaugural race took place in 2022 after the coronavirus pandemic and global supply chain issues prevented the 2021 debut. The race, which takes place in a suburb of Miami south of Hollywood, is contractually secured for ten years.
With the date in May, Formula 1 avoids an overlap with the NFL, the biggest spectator magnet for sports fans in the USA.
The NBA kicks off the hot phase of the basketball season in May, and the Miami Heat, a very popular local team, is in the championship. There are also the NHL playoffs, where the Florida Panthers are also based near Miami. In motorsport, NASCAR is still ahead of Formula 1 on average, but the numbers generated by the two races in Miami are impressive.
The event brought 350 million US dollars (around 325 million euros) to the region when it debuted in 2022. In 2023, it is expected to reach 450 million US dollars (425 million euros). All tickets for the first race were sold out, and 243,000 fans made a pilgrimage to the track on the race weekend.
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F1 versus NASCAR
For comparison: The NASCAR Daytona 500 race attracts around 130,000 fans to the oval on race day alone. There is no doubt that the demographics and viewership are positive. On television in the US, there was a decline in viewership from 2.58 million to 1.96 million from 2022 to 2023.
Formula 1 beats NASCAR in demographics. The Miami race was better positioned in the core market of 18 to 49 year olds than many NASCAR races.
Formula 1 was in the red in its first year because expected costs were significantly higher. This will reverse in the decade to make the race profitable.
A first step was to convince Formula 1 not to hold the race in the city centre. The race would have taken place in the city centre, but the infrastructure would have been a major obstacle.
Garfinkel explains in the podcast: “We would have had to start preparing three to four months before the event, and that would have upset many people because they would have had to accept losses in their business.”
“That’s why I thought it would be better to hold the race near the stadium,” the Dolphins general manager continued.
“It’s a challenge in downtown Miami with 20,000 people wanting to go to the Heat game. With over 100,000 fans that would have been even more of a challenge.”
A top-class tennis tournament, which also took place in the stadium area, was the benchmark and a complete success.
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Instead of just racing, Garfinkel is committed to bringing Formula 1 closer to all fans. He also does that with the Dolphins, where tickets cost between $100 and $1,000. Miami relies on offering different categories to justify the high ticket prices for Formula 1.
Weekend tickets for the 2024 edition are currently available for around 800 Dollars upwards, but there are also luxury versions in the Formula 1 Paddock Club that start at around an eyewatering 9,300 Dollars for a weekend.
The next step, according to Garfinkel, was to create an event that satisfied all of the attendees’ preferences. The first priority was a track that offers spectacular racing, but the supporting programme also had to be right.
“It’s about creating an environment with good food, music and great experiences for visitors,” he says. Miami is a unique selling point. The city lives from its atmosphere, culture and art.
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Garfinkel: Miami F1 race beats NFL in sales
The result: 30 hospitals and 65 independent kitchens had to be built. It was worth it says Garfinkel.
“We achieved a record ticket sales with the Dolphins last season; the race alone brings 25 percent more ticket sales than the entire Dolphins season [in the NFL].”
The mastermind of the events and the NFL team also relies on a young team that can show their talent to make the events a success.
Another important point, according to Garfinkel, is to stand out from other racetracks: “It’s something different to be at Spa or Silverstone.”
“We want to be different. We want to be more creative and innovative. We also want to try things that might not work. We want people to come and think, ‘Wow, I didn’t expect that.’ We’re enjoying this.”
But why didn’t the debut in 2022 bring in a profit? Garfinkel is ready with the answers: “In 2021 there were a lot of problems with the supply chain. The seats for the stands were supposed to come from China, but we didn’t get them. So we had to use local companies, which was more expensive, to ensure that the seats arrive.”
“The costs for the track were high. Drainage also had to be built to direct any rainwater away from the route. And then there were the shows, the lighting and the design. The team put a lot of energy into the details to provide the best possible experience. This all costs a lot of money. It was also important to him that the fans had short distances to satisfy their needs: food, drink and toilets…”
“We want people to come back,” he states emphatically.
Garfinkel is convinced that the work he has done will ensure the long-term success of Formula 1 in Miami.
“The financial situation will resolve itself over time if we position the event correctly and have the right people with experience on board.”
While there were some challenges in the first year, Garfinkel received “a lot of positive feedback” in the second year including the expanded supporting programme with sprint races and the F1 Academy.
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