THURSDAY 3RD JULY 2014
S R O S N O P PROUD S OF RACE WEEK & THE BLACK BOOK FORUM
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Contents 4
10 Black Book 2014 extract
Welcome
7 Programme of events
12 Event partners
8 Speakers
14 About SportsPro
MANAGING DIRECTOR Nick Meacham EDITORIAL David Cushnan ART DIRECTOR Daniel H Brown COMMERCIAL Peter Jones William Dobson
www.sportspromedia.com SportsPro Media Ltd 5 Prescot Street, London E1 8PA, UK Phone +44 (0) 207 549 3250 Email info@sportspromedia.com Twitter @SportsPro
PHOTOGRAPHER Graham Fudger
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MARKETING/OPERATIONS Yéwandé Aruléba Bhav Sahota
Black Book Race Forum is part of Race Week London www.raceweeklondon.com
GP Management CEO Jonny Dodge jonny.dodge@gp-management.com GP Management 5th Floor, 90 Mortimer Street London, W1W 7RA Phone +44 (0) 20 7637 2957 Email info@gp-management.com Website gp-management.com Facebook GP Management Twitter @GP_Management
Partners:
3
Lights out, away we go Welcome to the inaugural Black Book Race Forum. Halfway through a season which has seen the introduction of the most comprehensive set of technical changes in a generation, Formula One is in the midst of Mercedes domination. The magnificent championship run of Red Bull Racing and Sebastian Vettel is over. It has been a superb start to the year. Away from the track, however, the sport is at a crossroads. For while it is undoubtedly a highly successful global sport, with a near-magnetic pull for sponsors and broadcasters, Formula One’s business model is under increasing scrutiny. It starts at the very top, with the futures of CVC Capital Partners, the largest shareholder in Formula One, and Bernie Ecclestone, its ringmaster for so long, less than clear. Suggestions have been made that a recalibration of the revenue distribution model, to better reward the 11 teams, is in order. Bound up in that is the question of who should determine or influence the rules, which have been tinkered with endlessly over the past decade. Then there is the question of the ‘show’ and how far the sport should go to chase ratings, hits and clicks – and for such a technologically-advanced, Formula One appears well behind the curve when it comes to the new media world. As the name suggests, the Black Book Race Forum aims to stoke the debate about Formula One’s business model and its future. While today will have an inevitable focus on Formula One, there will be input, too, from other parts of the exciting, eclectic motorsport world. There is plenty to discuss, so let’s get started. Enjoy the day.
The Black Book Race Forum team 4
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PROGRAMME of events 10.00 - 10.30
Registration and coffee
10.30 - 10.35
Welcome
10.35 - 11.15
Teams and Governance - Federico Gastaldi, Deputy Team Principal, Lotus F1 Team - Oliver Weingarten, Former General Secretary, FOTA - Mark Alexander, Head of Business Group, Meet the Crowd - Mark Gallagher, Founder, Status Grand Prix Ltd.
11.15 - 11.40
Coffee
11.40 - 12.10
In conversation with‌ Chris Aylett, Chief Executive, Motorsport Industry Association
12.10 - 13.00
Circuits and Venues - Ahmad Razlan bin Ahmad Razali, CEO, Sepang International Circuit - Shaikh Salman Bin Isa Al-Khalifa, CEO, Bahrain International Circuit - Gonzalo Gobert, General Manager, Circuit de Valencia
13.00 - 14.10
Lunch
14.10 - 15.00
Sponsorship - Christian Vine, Chief Marketing Officer, Lotus F1 Team - Nigel Geach, Senior Vice President, Motorsport, Repucom - Heike Grunwald, Sponsorship & Acquisitions, Sauber Motorsport
15.00 - 15.30
Coffee
15.30 - 16.00
Sponsorship Case Study: EMC and Lotus F1 Team - Jonathan Martin, Chief Marketing Officer, EMC - Christian Vine, Chief Marketing Officer, Lotus F1 Team
16.00 - 17.00
Close and Networking Drinks
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Speakers Chris Aylett Chief executive, Motorsport Industry Association Chris has been Chief Executive of the Motorsport Industry Association (MIA) since 1998. It has become the leading business network for this global industry, with nearly 350 member companies which transact over US$6 billion of global business. Worldwide membership now includes Formula One, World Rally and US teams, major promoters, leading manufacturers, circuit operators, and service providers. He has extensive international experience with both his business, and leading trade associations – he is a part President of the Sports Industries Federation - and has built up a widespread network of key industry contacts. He has successfully developed and promoted the MIA and its members around the world, and regularly leads business development missions to the USA, Europe and other markets, which have proved hugely beneficial to members.
Federico Gastaldi Deputy Team Principal, Lotus F1 Team Federico started his working career with textile company Benetton where he had different roles over a number of years in South America, the USA and in Europe. In the mid-1990s, Federico promoted the Argentinian Grand Prix and the MotoGP Argentina before getting involved in Benetton’s F1 project, providing commercial and marketing consultancy. In the early 2000s, he worked on a number of motorsports projects in Mexico, Miami and in Costa Rica. In 2005, Federico opened the UK offices of global IT consultancy firm Globant, headquartered in Buenos Aires. Federico joined again the Enstone organisation when Genii Capital acquired the team. He has worked for Lotus F1 Team since 2010 as Director of Business Development and he was promoted to Deputy Team Principal in March 2014.
Shaikh Salman Bin Isa Al Khalifa Chief Executive, Bahrain International Circuit Shaikh Salman began his career working within the Bahraini government in the Civil Service Bureau, spending two years gaining valuable experience and knowledge in the business arena while also specialising in Quality Management Systems. This work experience gave Shaikh Salman the necessary understanding and skills to successfully fulfill his next governmental posting for the General Organisation for Youth and Sport (GOYS), where he worked as the Marketing Manager. Whilst Bahrain International Circuit (BIC) was still on the drawing board, he was invited to take on a new role at GOYS, related to the rapidly growing interest in motorsport within the Kingdom. At the same time, he also held the position of Vice President of the Bahrain Motor Federation (BMF) until 2004, where he played a vital role in growing awareness of the motorsport scene in the Kingdom, ahead of the inaugural Formula One Gulf Air Bahrain Grand Prix. In 2004, he was appointed Head of Governmental Affairs for the circuit, before being promoted to Chief Operating Officer in 2007. In 2010, he was confirmed as Chief Executive of the BIC.
Jonathan Martin Chief Marketing Officer, EMC Jonathan Martin is Chief Marketing Officer at EMC. With revenues of US$23.2 billion in 2013 and more than 62,000 employees worldwide, EMC is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset—information—in a more agile, trusted and cost-efficient way. Martin was appointed to Chief Marketing Officer in March 2014. He is responsible for the global structure, strategy, and execution of all aspects of EMC’s marketing efforts, including all major events and programs. Martin joined EMC as Senior Vice President of Corporate Marketing in March 2011, responsible for building and guiding EMC’s global reputation and brand through EMC’s web, social, community and mobile presence, paid media efforts, marketing analytics and worldwide corporate events. In his role, Martin’s charter was to make the EMC brand synonymous with IT transformation, big data, and security. He is based at EMC’s offices in Santa Clara, California. Prior to EMC, Martin held executive marketing and product roles at HP, Salesforce.com, PortWise, and VERITAS Software. He holds a Master of Science degree in Computer Science and Bachelor of Science degree in Applied Science from Staffordshire University in Stoke-on-Trent, United Kingdom. He is also a member of the CMO Council and Forrester’s CMO Group.
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Nigel Geach Senior Vice President, Motorsport, Repucom Nigel is Repucom’s Mr Motorsport and is responsible for the marketing and sales side of the global motorsport business. Whether it be Formula One, Touring Cars, World Rally Championship or MotoGP, Nigel contributes regularly on TV, in the press or at conferences to give a balanced and informative view of the state of global motorsport. He brings more than a quarter of a century of experience of the sponsorship research business to the table, having joined the company as part of the acquisition of IFM Sports Marketing Surveys, where he had worked since 1986. A graduate in business management, Nigel has seen first-hand the growing importance of sports sponsorship and the growing need to evaluate all marketing disciplines. He is the Vice-Chairman of the European Sponsorship Association Board. He is married with one son and a grandson and lives in Surrey.
Christian Vine Chief Marketing Officer, Lotus F1 Team Christian has 20 years experience in the luxury automotive sector and Formula One, and has served on the leadership teams of Lotus, Ferrari and Williams. He joined the Lotus F1 Team as Chief Marketing Officer in December 2012. He is Chief Executive of the Grand Prix Management Group.
Heike Grunwald Sponsorship & Acquisitions, Sauber Motorsport AG Heike Grunwald is responsible for Sponsoring Acquisition at Sauber Motorsport AG. She started her career in 1998 at the Le Mans team Porsche Kremer Racing in Cologne, where she served as team manager for two years following school. Heike earned her degree in Vehicle Engineering at the University of Applied Sciences Cologne and subsequently founded her own marketing and consulting company consulteria, which she led for eight years, before returning to the world of motorsport. Heike joined the Sauber F1 Team in Switzerland in January 2011. Since 2014, she directly reports to Team Principal Monisha Kaltenborn in this role.
Razlan Razali CEO, Sepang International Circuit Razlan Razali was exposed to the motorsports industry from a very young age and cultivated a passion for Superbikes and Supercars. His passion for motorsports eventually brought about the advent of Pineapple Motor Sports Pte Ltd. As Team Principal of the local outfit, Razlan developed a challenging race team that proved itself in the Malaysian National Championship called The Malaysian Super Series by becoming champions in 2007 and 2008. Razlan also started a motorcycle magazine called the Msportbike magazine to ensure motorsport enthusiasts kept abreast with the activities on the local motorsport arena in 2006. Razlan is currently the CEO of Sepang International Circuit (SIC), upon his appointment on October 8th, 2008. His vast knowledge accumulated in motorsports and commercial sustenance, made him an ideal candidate to spearhead SIC’s restructuring to redefine itself as a motorsport hub and crucial in the development of motorsports in a country that brands itself as a leading contender in the sport in South East Asia. Razlan is also currently the CEO of the Malaysian Association of Motorsports since 2010 and Chairman of CBSA Berhad, listed in the Kuala Lumpur Stock Exchange (KLSE) since 2012.
Gonzalo Gobert General Manager, Circuit de Valencia
Mark Alexander Head of Business Group, Meet the Crowd
Oliver Weingarten Former General Secretary, FOTA
Mark Gallagher Founder, Status Grand Prix Ltd.
9
AN Extract from - Published in March 2014
British GRAND PRIX Silverstone / 6th JULY
Silverstone hosted the first world championship Grand Prix in 1950 and has staged the British Grand Prix every year since 1987. During that period there have been highs – home victories for Nigel Mansell, Damon Hill, Johnny Herbert, David Coulthard and Lewis Hamilton – and lows. In particular, the decision to switch the race to Easter weekend in 2000, a move which resulted in transport chaos around the circuit with the fields used as car parks unable to cope with the predictably wet April weather, was a dreadful error. Similar problems marred the 2012 event, causing significant embarrassment to the British Racing Drivers’ Club (BRDC), which owns the rural Northamptonshire circuit, and Silverstone Circuits Ltd, which operates the venue. After a period of considerable uncertainty during the 2000s, with Bernie Ecclestone at one
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the need to sell every ticket possible remains the biggest priority for the management team, led by Richard Phillips. stage signing contracts to move the British Grand Prix to a redeveloped Donington Park, Silverstone finally secured the long-term contract for the race it had been seeking for some time in 2009. It is now in the middle of a 17-year deal – ten years, plus an option for seven more – which sees it pay an average of UK£17 million per year. Silverstone opened The Wing, a new UK£27 million pit and paddock complex, in 2011, part of a series of investments designed to keep Formula One and other major events such as MotoGP at the venue. The vast building was constructed to be as multi-purpose as possible, capable of hosting conventions and other MICE events as well as all forms of
motorsport. Impressive though it may be on the outside, The Wing has its critics – not least in the media, who are cocooned away in a windowless room somewhere deep in the middle of the building. A raft of further circuit and infrastructure upgrades are planned, although financing the various projects remains a significant issue for the BRDC. In September, the organisation announced it had completed deals for the development of land around the circuit and ‘agreed terms with a suitable partner to further develop and invest in the circuit’. MEPC, which is owned by the BT Pension Scheme, agreed to pay the BRDC UK£32 million for a 999-year
Circuits
lease to develop the area around the circuit, which includes the existing Silverstone Industrial Estate. The BRDC, however, was unable to reveal the identity of its partner for the further development of the circuit, citing non-disclosure agreements. Months on, there has been no firm word on who the investor might be.
The BRDC intends to use the UK£32 million investment to pay off long and short-term loans from Lloyds Banking Group and Northamptonshire City Council. As the self-styled ‘home of British motorsport’ Silverstone’s seasonal calendar includes a host of national championships, as well
as rounds of the World Endurance Championship and the MotoGP world championship. Formula One is, by some distance, the circuit’s biggest event of the year; despite a more rosy financial outlook, the need to sell every ticket possible remains the biggest priority for the management team, led by Richard Phillips.
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Partners The GP Management Group The GP Management Group builds live event and luxury brands globally, creating high level experiential events for trips for brands and managing tax efficient investments in the luxury and events sector.
The Grand Prix Ball The Grand Prix Ball is the highlight of Race Week London, the home of motor sport during the British Grand Prix. Held during the day across six acres at the Royal Artillery Gardens, don’t miss the chance to get up close and personal with some of the world’s rarest F1 cars.
Black Book The Black Book is in its ninth year of publication in 2014 and is firmly established as the leading business guide to Formula One. Published each April, the Black Book reviews the previous 12 months and delivers team-by-team, circuit-by-circuit, sponsorship and management analysis. Providing mission-critical information for anyone looking to invest in the sport, the Black Book also includes a 3,000-strong contacts directory, key statistics and a style section. The 2015 edition, the tenth time the Black Book has been published, will be available next April.
SportsPro SportsPro covers the commercial, political and organisational aspects of global professional sport, across a variety of platforms. Its acclaimed monthly magazine, available in print and via a dedicated app, offers expert commentary and opinion, and is established as the industry leader for high-level profiles, features and in-depth interviews. Nothing else is as comprehensive.
Sauber Motorsport Sauber Motorsport is the owner of the Sauber F1 Team . Sauber was founded in the 1970s by Peter Sauber, and has progressed through motorsport to reach Formula One in 1993. Current sponsors include NEC, Chelsea Football Club, Telmex, Cuervo Tequila, Certina Watches and many others.
Bahrain International Circuit (BIC) Initiated by His Highness Crown Prince Shaikh Salman bin Hamad Al Khalifa, and opened in 2004, the Bahrain International Circuit (BIC) hosts the annual Bahrain Grand Prix, as well as a host of motorsport events across the year, using any of its seven race tracks to deliver these events. The BIC has some of the most state of the art facilities across the world and is widely regarded as the ‘home of motorsports in the Middle East’.
EMC Lotus F1 Team and EMC Corporation have partnered to establish an information technology platform for success as the team challenges for a World Championship. 2014 brings the largest changes in a generation, with new engines, radical safety and point scoring changes introduced to Formula One racing. To remain competitive, the Lotus F1 Team required a complete rebuild of its IT infrastructure. EMC was appointed to provide cloud-based technology and expertise, enabling more agile and cost-efficient storage, management and protection of information. The team’s new infrastructure - both trackside and at its Enstone, UK headquarters, is essential to meet the next wave of technological and competitive challenges.
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Lewis Hamilton (right), pictured at the Belgian Grand Prix, settled into his new team well in
/1 teAM BY teAM 2014
2013, but it was the last year in charge of Mercedes for Ross
on. rface as the season wore to Every year that Ferrari fails in titles the pressure on Stefano notch or Domenicali ratchets up a the wo. It is now five years since of any cuderia won a championship drivers’ ort and six since it won the popular a principal, team itle. The paddock figure, looked understandably its end, weary as the season reached mid-season although in a significant Allison, move he did persuade James director, Lotus’s talented technical to move to Maranello. Allison’s be felt next contribution will start to work season. Extensive renovation had also on the team’s windtunnel the year, concluded by the end of on impact albeit too late to have any the performance of the F138. “The assessment of the season just ended cannot be positive,” up after the Domenicali said, summing after a “because Prix, Grand Brazilian a second half competitive start, we had standards. that did not live up to our all He added, however: “I think and the the decisions we have taken us in the changes we made are taking season in right direction to tackle next the best way possible.”
Brawn (below).
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s MiD-seAson struggLe its The F138, a better car than that will predecessor but not one be particularly fondly remembered reliable, at Maranello, was certainly years. another Ferrari trend of recent season Felipe Massa, in his eighth two races, with the team, retired from and spinning crashing out in Monaco German off in the early stages of the just one Grand Prix. Alonso had of the second non-finish, skittling out when race of the season in Malaysia in a brush his front wing, damaged the opening with Vettel’s Red Bull on to not lap, gave way; it was a mistake
quite hit a title. His campaign didn’t Alonso was of the best to pit for a replacement. led up to the the heights of 2012 – one on the first The circumstances which driven – but also involved in a skirmish Ferrari. By Formula One seasons ever Reduction change of driver were pure and two lap in India, while a Drag darling still there were nine podiums him mid-season, Alonso, the team’s in Spain. System (DRS) problem delayed become wins, in China and at home he since arriving in 2010, had in in Bahrain. Elsewhere, however, its failure Massa, who finished eighth the start of increasingly frustrated by 130 points was at his brilliant best at the championship, some pace with other frontrunners, up positions keep to making one frequently just races, fifth in behind Alonso, delivered an notably Red Bull. After finishing in Spain. off the line – Singapore and by reporters what podium finish, a third place asked of was he outside the Hungary Ferrari, for audacious move around birthday It was to prove his last for Hamilton he would like for his upcoming announced Kimi Raikkonen and Lewis else’s in September the Brazilian and dryly replied, “Someone team electing in Barcelona were the standouts. public he would be leaving, the to car.” The remark drew a swift Shortly Indeed, Alonso did nothing Luca di against extending his contract. the greats in rebuke from Ferrari president it had damage his status as one of on the official afterwards, Ferrari confirmed more keenly Montezemolo, published 2014 for 2013, although he will be Raikkonen the re-signed Kimi march of time: Ferrari website. Alonso’s comments, a team aware than anyone of the well and 2015, the Finn rejoining in 2006 and team stated, ‘did not go down his last championship was he left in 2009. without it is now four seasons at Ferrari
it was relatively lenient punishment, Carlo other than an at Silverstone to his Monte hard to see it as anything in India g by triumph, plus a second place admirable piece of loophole-seekin Hamilton, and third in Abu Dhabi. team principal Ross Brawn. in a blaze who arrived from McLaren the 2012 c win in Despite its scruffy end to of publicity, took five: a terrifi look of a poWer sHiFt in Malaysia, season, Mercedes had the Hungary, plus third places championship a team ready to make d season, China, Canada and Belgium. Lewis Despite a much-improve push at the start of 2013. certainly quick, as was he W04 team e Th the in position force Brawn’s own the season Hamilton’s arrival was a stirring control eight pole positions during for the has led since Mercedes took the habit and there were high hopes for demonstrated, but it retained had begun in 2010 was also under scrutiny eating up its W04, a car on which work winter, of recent Mercedes cars of of an much of the year. Over the Rosberg early in order to gain as much Wolff to run tyres quicker than most, leaving Mercedes recruited Toto through the advantage as possible. and Hamilton falling back division and installed in the that, motorsport Bull its Red the were At races. So good world pack in the early stages of really another Austrian, three-time a thoroughly end, the title challenge didn’t nonSpanish Grand Prix in May in the champion Niki Lauda, as pole but materialise but second place men received bemused Rosberg started on confirmed executive chairman. Both team’s constructors’ championship, acquiring 30 finished fifth, such was the in Brazil, shares in the team, Wolff Pirellis. at the final race of the year cent. inability to get on top of the indication of per cent and Lauda 10 per was well deserved and an shift Mercedes It appeared to be a power the team’s progress. Indeed, which testing tiMes Bull Racing away from Brawn, a sense reduced its deficit to Red on year, strengthened when the German Grand from 318 to 236 points year technical In the days after the Spanish achieved on manufacturer hired McLaren took scoring 218 more than it Officially, Prix, Rosberg and Hamilton director Paddy Lowe in June. in the way to fifth place in 2012. role of in a test organised by Pirelli the part to team appointed the was for Lowe came There were three wins but the Barcelona, a fact which only from executive technical director Monaco. to cheer in 2013, a fine drive the team, was to light two weeks later in perhaps plan, openly talked of by at what they Nico Rosberg in Monaco of Rival teams were furious in for there to be a gradual handover advantage the highlight, and nine podiums clear a be to taking interpreted by some power, with Lowe ultimately team, total. Rosberg, written off gleaned by the Brackley-based a match from Brawn as team principal. over they least before the season began but if there ever arguing that at the very the year, However, the timeframe, to have for Hamilton throughout and the should have been invited victory was one, was never revealed Pirelli, took four of those, adding especially observers present throughout. team’s strong performance, criticism season, already facing intensifying the of part middle in the it original about the level of tyre degradation then seemed to derail the for to keep had engineered into its product programme entirely. Efforts in the about his 2013, also became embroiled Brawn, apparently undecided protest by controversy after a formal own future, kicked in. the topRed Bull and Ferrari. Amidst all the speculation the The case went to an FIA Tribunal heavy management got through in June, which decided Mercedes too much friction, at without season young the focus was to be barred from July’s least to the public eye, with took on Ferrari keep to driver test, a session which battle the on very much drivers were Red Bull more relevance when race at bay once it became clear the multiple for the world allowed to take part after Racing were away and clear Grand Prix of the year, tyre failures at the British championship. By the end how Quite rethink. that Brawn prompted a safety Lauda for one was insistent Barcelona advantageous the three-day but less than a week after the stay, must be never confirmed test was for Mercedes will final race of the year the team clear, although Rosberg controlled that the Englishman was leaving. given the the race in Monaco, but,
2013 in reVieW: step MAKing tHe neXt
20 l BLACK BOOK 2014
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The background noise did not seem to affect the team’s were performance, although there final two no podium finishes in the first fruits races. “Our progress is the began of the technical team we I am building two years ago and of progress optimistic that the trend quietly a will continue in 2014,” after pleased Brawn said, immediately second place in the championship will not be was secured, although he around to see it.
driver There are few Formula One and pairings as strong as Rosberg showed well Hamilton and both men the throughout the season, despite Hamilton inconsistencies of the car. team wel played himself into his new to fluctua although his mood tended was by the weekend, while Rosberg handled the impressive in the way he partner, arrival of another illustrious Schumac after experiencing Michael Perhaps for the past three seasons. had tellingly, however, Hamilton
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MAGAZINE Published every month since 2008, SportsPro has become the world-leading print magazine for the international sports industry. Combining in-depth reporting and analysis with an understanding of the desire for accurate, meaningful numbers, SportsPro has become a vital source of information and insight for current and potential sponsors and investors, rights holders, broadcasters, teams, leagues and agencies. Neatly illustrating the variety for which SportsPro has come to be known, cover stars in 2013 included Adidas chief executive Herbert Hainer; Red Bull Racing team principal and multiple Formula One world champion Christian Horner; new International Olympic Committee president Thomas Bach; boxing great Floyd Mayweather; and Infront Sports & Media chief executive Philippe Blatter.
WEBSITE • L atest news: Full coverage of every broadcast, sponsorship, personal endorsement, licensing, infrastructure, agency, hosting and property deal completed in the sports industry. • I nterviews: Timely and focused interviews which get straight to the heart of the issue with some of global sport’s key players, including Tour de France winner Chris Froome, Uefa marketing director Guy-Laurent Epstein, America’s Cup legend Russell Couttts, UCI president Brian Cookson, UK sports minister Hugh Robertson and Cricket Australia chief executive James Sutherland.
APPS Launched to much acclaim in 2012, SportsPro’s dedicated magazine app has let the industry read and search the magazine in digital form each month. The service offers the opportunity for a free trial and the chance to buy a 12-month subscription or purchase individual digital magazines and back issues. In early 2014, SportsPro launched a news app, delivering the latest news and deals from the website. Both apps are free to download and compatible with both Apple and Android products.
REPORTS SportsPro also produces comprehensive specialist annual reports and publications, on the business of Formula One, professional sailing and sports tourism. The Black Book, an indispensible business guide for the Formula One industry, was published for the ninth time in April, and will be followed later this year by the second annual Sailing Black Book. SportsPro’s second annual Destinations report is available now.
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