Sometimes You Have To Break the Rules

People who know me know I'm a huge fan of Formula 1 auto racing. It's the most exciting, technically advanced and challenging racing anywhere in the world. Leading teams spend hundreds of millions of dollars a year just to try and win one of the 19 races that are run around the world from March through October and sponsors use races as a major way of wooing customers. Arguably, Formula 1 has one of the most widely known brands in the world.

Which is why the United States Grand Prix run last weekend (06/19) was such a stunning example of how to damage a global brand. Due to a problem with tires supplied to seven of the teams they all pulled out of the race at the last minute. The fans had no idea that this was even a possibility. As a result the six cars running on Bridgestone tires ran the race, but it was essentially a joke and may have done irreparable damage to the F1 brand in the United States and probably elsewhere in the world as well.

How did this happen? After two of the cars from the Toyota team had accidents in Friday's practice due to tire failure, Michelin, the supplier of tires to seven of the ten F1 teams said it could not guarantee that anyone else’s tires were safe to race at the track. The teams met to discuss a compromise that would allow the race to take place but at a slower pace, for no points or for the possibility of taking a penalty for changing tires mid race (F1 cars are not normally allowed to change tires from qualifying through the end of the race).

All of these options would have required breaking long standing rules set forth by the FIA, motor racings governing body and the FIA said NO! This simple refusal to accept some form of compromise, to make an exception and break a few rules in the name of competition and safety has probably cost Formula 1 a significant amount of its brand equity and may kill the series all together. (there are a lot more nuances to this story, but that would probably require writing a book)

For months there have been rumblings that 7 or 8 of the teams in F1 are tired of dealing with the politics and financial stipulations of the FIA and F1 management and are threatening to start their own competing series to F1 in 2008, if not sooner. The fiasco at Indianapolis was just one more nail in the F1 coffin and may ultimately be the tipping point that leads to its demise.

If you ever want to see a great example of how to kill a global brand in a very short period of time (or even with a single event for that matter) you need look no further than Formula 1.