Major motorsport events are under siege. How major motorsport events can become viable in the long-term by implementing Shared Value throughout the stakeholder sphere.

Abstract

Background and Problem: Major motorsport events are under siege. Creating social and environmental value without sacrificing financial profitability remains unsolved. Successful creation of such is termed Shared Value creation. Recently, Formula One was acquired by Liberty Media, emphasising value creation for the longer-term in an industry which is extremely profitable, albeit subject to critique for not creating enough social and environmental value. Formula E can be found on the other end of the spectrum, a new motorsport founded in 2014. Compared to Formula One, value creation for the long-term lies within the vision of Formula E. However, Formula E is yet to make such value creation financially profitable. This Master’s thesis takes on these problems, investigating how trade-offs between social, environmental and economic value can be minimised. Purpose: How major motorsport events can make the future business case by creating economic, social and environmental value integratively. Methodology: Given the unit of analysis (major motorsport events), the research method included a qualitative single case study with embedded units. Theory was utilised and extended in accordance to abduction and hermeneutics. The data was collected through 37 semi-structured interviews with respondents actively present within Formula One and Formula E. Due to the systematic scope of the study, the data was interpreted and analysed through conceptual mapping. Results and Conclusion: Embracing road relevance and motorsports as a platform for innovation can derive financial profitability from environmental value creation. Creating social value through inclusive pricing, fair competition for teams, edutainment, and legacies can boost market growth. Albeit, Shared Value creation must be implemented collectively throughout the stakeholder sphere to maximise its effects. To facilitate resource allocation and risk sharing, backbone organisations are required. Global stakeholders ought to utilise franchise systems as backbone structures, local stakeholders are advised to create event management companies. The transformations are to be initiated and lead by influential stakeholders; the international governing body and commercial rights holders specifically. Such norm-making shall inspire other stakeholders to follow. A medium-term focus on profitability and shared visions must be emphasised, favouring emergent solutions. Consequently, Bengtsson and Markovski (2017) propose Collective Shared Value Creation in a Glocal Ecosystem as the solution major motorsport events’ long-term viability.