Author(s): Pankaj Joshi, Dheeraj Kumar and Lakshmi Narayanan
This research paper investigates the factors that contribute to the contract extension of drivers in the Formula One (F1) racing industry. The study analyzes data on various factors that affect a driver's contract extension, including their on-track performance, consistency, adaptability, experience, and ability to work with their team. The role of driver marketability, such as social media following, nationality, and personality, in contract negotiations is also examined. The study focuses on two main factors: how a driver's performance in the previous season influences their contract extension for the next year, and whether training and retaining the same drivers for longer periods of time with the same team provides any advantage in the constructor's championship. Data from the 2010 to 2022 seasons is used for analysis, as they are the latest F1 seasons with the modern F1 points system. The study employs a mixed-method approach, starting with exploratory data analysis of F1 data dump collected from the F1's Official website. The dataset includes driver and team statistics, such as their performance in each race, championship points, and race results, as well as demographic and marketability data, such as the driver's nationality and social media following. The research findings indicate that a driver's performance in the previous season is a significant factor in their contract extension. Additionally, retaining the same drivers for longer periods of time with the same team can provide advantages in the constructor's championship. The study provides insights into the factors that influence contract negotiations in the F1 industry and can aid in making informed decisions in driver selection and team management.