The Official Formula 1 2014 Season Thread
02-21-2014, 09:05 AM
#3307
Risky Business
Thread Starter
Join Date: Jul 2002
Location: Trackside with the smoking bee
Posts: 25,211
Likes: 0
Received 47 Likes
on
39 Posts
Re: The Official Formula 1 2014 Season Thread
Comment I just wrote for Joe Saward's blog. What do you guys think about a cost cap/revenue sharing?
Exactly. Why would Ferrari or McLaren want to be restricted to spend the same amount as Caterham? They have the history, infrastructure, and brand that they have to defend.
F1 racing is a different animal than team sports because there is so much involved. With the NFL/MLB, it’s all human beings. Use your funds to buy the best players available and replace them when they retire/get injured. With racing, you have intellectual property, buildings, manufacturing, R&D facilities, etc. With IndyCar or another spec series it could theoretically work because all you’re paying for is the car from the manufacturer, the team, and the drivers. F1 is not as simple as that.
“Cost caps” were never a problem until tobacco sponsorship was outlawed. There was an endless supply of money because it was literally the only medium the companies could use to advertise. Teams from Ferrari to Tyrrell were decked out in Marlboro (Ferrari still is), Mild Seven, Lucky Strike, Gauloises, B&H, West, Rothmans, etc.
The only type of company I see putting money into F1 now is the auto manufacturers. The idea to change to a V6 turbo hybrid, which is much more road relevant, is already paying dividends. Honda has pledged EUR 100m to the McLaren operation next season.
Cost caps would push away auto manufacturers as well. Yes, it would be enticing to compete with other makes to see who could build the best engine for $30m per season, but if you built a dud, you risk damaging your brand and even worse…you can’t spend any extra money to try and fix it!
I’m absolutely sure Ghosn is writing some big checks that he didn’t want to after the disaster that was the first Jerez test
Creating any kind of revenue-sharing system is not going to be easy because it is not in the interest of the winners to help out the losers, but the sport would be healthier if they did.
F1 racing is a different animal than team sports because there is so much involved. With the NFL/MLB, it’s all human beings. Use your funds to buy the best players available and replace them when they retire/get injured. With racing, you have intellectual property, buildings, manufacturing, R&D facilities, etc. With IndyCar or another spec series it could theoretically work because all you’re paying for is the car from the manufacturer, the team, and the drivers. F1 is not as simple as that.
“Cost caps” were never a problem until tobacco sponsorship was outlawed. There was an endless supply of money because it was literally the only medium the companies could use to advertise. Teams from Ferrari to Tyrrell were decked out in Marlboro (Ferrari still is), Mild Seven, Lucky Strike, Gauloises, B&H, West, Rothmans, etc.
The only type of company I see putting money into F1 now is the auto manufacturers. The idea to change to a V6 turbo hybrid, which is much more road relevant, is already paying dividends. Honda has pledged EUR 100m to the McLaren operation next season.
Cost caps would push away auto manufacturers as well. Yes, it would be enticing to compete with other makes to see who could build the best engine for $30m per season, but if you built a dud, you risk damaging your brand and even worse…you can’t spend any extra money to try and fix it!
I’m absolutely sure Ghosn is writing some big checks that he didn’t want to after the disaster that was the first Jerez test
02-21-2014, 09:22 AM
#3309
Risky Business
Thread Starter
Join Date: Jul 2002
Location: Trackside with the smoking bee
Posts: 25,211
Likes: 0
Received 47 Likes
on
39 Posts
Re: The Official Formula 1 2014 Season Thread
It's not coming back, it looks like a Hornet because BUZZIN HORNETS looks like BENSON HEDGES from a distance 
Don't forget
Don't forget
02-21-2014, 10:01 AM
#3314
Re: The Official Formula 1 2014 Season Thread
Exactly. Why would Ferrari or McLaren want to be restricted to spend the same amount as Caterham? They have the history, infrastructure, and brand that they have to defend.
F1 racing is a different animal than team sports because there is so much involved. With the NFL/MLB, it’s all human beings. Use your funds to buy the best players available and replace them when they retire/get injured. With racing, you have intellectual property, buildings, manufacturing, R&D facilities, etc. With IndyCar or another spec series it could theoretically work because all you’re paying for is the car from the manufacturer, the team, and the drivers. F1 is not as simple as that.
“Cost caps” were never a problem until tobacco sponsorship was outlawed. There was an endless supply of money because it was literally the only medium the companies could use to advertise. Teams from Ferrari to Tyrrell were decked out in Marlboro (Ferrari still is), Mild Seven, Lucky Strike, Gauloises, B&H, West, Rothmans, etc.
The only type of company I see putting money into F1 now is the auto manufacturers. The idea to change to a V6 turbo hybrid, which is much more road relevant, is already paying dividends. Honda has pledged EUR 100m to the McLaren operation next season.
Cost caps would push away auto manufacturers as well. Yes, it would be enticing to compete with other makes to see who could build the best engine for $30m per season, but if you built a dud, you risk damaging your brand and even worse…you can’t spend any extra money to try and fix it!
I’m absolutely sure Ghosn is writing some big checks that he didn’t want to after the disaster that was the first Jerez test
F1 racing is a different animal than team sports because there is so much involved. With the NFL/MLB, it’s all human beings. Use your funds to buy the best players available and replace them when they retire/get injured. With racing, you have intellectual property, buildings, manufacturing, R&D facilities, etc. With IndyCar or another spec series it could theoretically work because all you’re paying for is the car from the manufacturer, the team, and the drivers. F1 is not as simple as that.
“Cost caps” were never a problem until tobacco sponsorship was outlawed. There was an endless supply of money because it was literally the only medium the companies could use to advertise. Teams from Ferrari to Tyrrell were decked out in Marlboro (Ferrari still is), Mild Seven, Lucky Strike, Gauloises, B&H, West, Rothmans, etc.
The only type of company I see putting money into F1 now is the auto manufacturers. The idea to change to a V6 turbo hybrid, which is much more road relevant, is already paying dividends. Honda has pledged EUR 100m to the McLaren operation next season.
Cost caps would push away auto manufacturers as well. Yes, it would be enticing to compete with other makes to see who could build the best engine for $30m per season, but if you built a dud, you risk damaging your brand and even worse…you can’t spend any extra money to try and fix it!
I’m absolutely sure Ghosn is writing some big checks that he didn’t want to after the disaster that was the first Jerez test
for you sir. The problem in F1 is everything is in excess, especially the budgets required. The manufactures come and go because of these costs. You point to Honda's new stake in McLaren, but forget to mention that after spending half a BILLION dollars in 2008, they decided to take off. Same as BMW and Toyota, brands that have invested more efficiently in other forms of motorsports.
So, if a cap isn't the answer, and the limitless spending is also the wrong answer, then what is the middle ground? A "soft" cap with a luxury/spending tax ala the NBA? Where the big teams can still outspend, but be more penalized for doing so? I agree the NFL's hard cap is a no go for reasons that you state, but there has to be some compromise for the good of the sport. A team like Caterham can't spend close to $100 million and be completely embarrassed like they are now. How does that keep the guys writing the checks happy?
02-21-2014, 10:50 AM
#3317
Risky Business
Thread Starter
Join Date: Jul 2002
Location: Trackside with the smoking bee
Posts: 25,211
Likes: 0
Received 47 Likes
on
39 Posts
Re: The Official Formula 1 2014 Season Thread
I think first of all, the teams need to split from F1 in the first place...but it hasn't happened yet and I don't think it will happen because of Ferrari.
I'm sure the finance people at Ferrari did the math, and they decided that getting a share of 50% of the F1 revenue while being guaranteed more prize money than all of the other teams was worth more to them than getting a share of 100% of the revenue in a breakaway series.
Who knows how much being at the front of F1 is worth to their brand? Ferrari gets $17m automatically, $34m for being in the top 10, and then another $40-60m depending on where they finish in the WCC. So we'll say $100m.
If the teams broke away and split the money evenly among all of the teams, and the $700m money fund was $1.4b, it would be $127m to each of the 11 teams. Doesn't sound worth the extra money to Ferrari does it?
In 2012, Ferrari's revenues were 2.5B EUR with 244M EUR in net profit. How much of that profit is based off of their brand prestige, merchandising, and licensing deals we'll never know. Marlboro loves them so much that they pay Ferrari $50m a year to have a white triangle on their car.
You just can't have parity and have it be the pinnacle of motorsport, as sad as that sounds. Spending is only "out of control" because McLaren, Ferrari, Red Bull, and Mercedes have deep pockets and are willing to spend whatever to get ahead of eachother. That's the name of the game in F1.
I'm sure the finance people at Ferrari did the math, and they decided that getting a share of 50% of the F1 revenue while being guaranteed more prize money than all of the other teams was worth more to them than getting a share of 100% of the revenue in a breakaway series.
Who knows how much being at the front of F1 is worth to their brand? Ferrari gets $17m automatically, $34m for being in the top 10, and then another $40-60m depending on where they finish in the WCC. So we'll say $100m.
If the teams broke away and split the money evenly among all of the teams, and the $700m money fund was $1.4b, it would be $127m to each of the 11 teams. Doesn't sound worth the extra money to Ferrari does it?
In 2012, Ferrari's revenues were 2.5B EUR with 244M EUR in net profit. How much of that profit is based off of their brand prestige, merchandising, and licensing deals we'll never know. Marlboro loves them so much that they pay Ferrari $50m a year to have a white triangle on their car.
You just can't have parity and have it be the pinnacle of motorsport, as sad as that sounds. Spending is only "out of control" because McLaren, Ferrari, Red Bull, and Mercedes have deep pockets and are willing to spend whatever to get ahead of eachother. That's the name of the game in F1.
02-21-2014, 11:03 AM
#3319
02-21-2014, 11:12 AM
#3320
Honda-Tech Member
Join Date: Oct 2013
Location: NYC
Posts: 1,082
Likes: 0
Received 0 Likes
on
0 Posts
Re: The Official Formula 1 2014 Season Thread
AMEN, brother!
I was so happy years ago when that was a possibility, only to be disappointed when it didn't happen.
02-21-2014, 11:12 AM
#3321
Re: The Official Formula 1 2014 Season Thread
You just can't have parity and have it be the pinnacle of motorsport, as sad as that sounds. Spending is only "out of control" because McLaren, Ferrari, Red Bull, and Mercedes have deep pockets and are willing to spend whatever to get ahead of eachother. That's the name of the game in F1.
So, all of the NFL teams get an equal cut of TV money (the BIG money), but they each market their own branding for additional profits. It's like comparing the Patriots to the Browns. The Browns suck, but they're not at institutional disadvantage, nor are they close to going broke. The Pats just do it all better. The same could be Ferrari, Merc, McLaren et al, but the lovable losers would still turn a profit and exist.
02-21-2014, 11:38 AM
#3322
Risky Business
Thread Starter
Join Date: Jul 2002
Location: Trackside with the smoking bee
Posts: 25,211
Likes: 0
Received 47 Likes
on
39 Posts
Re: The Official Formula 1 2014 Season Thread
Ferrari doesn't care if the small teams die. All of the big teams want the small teams to go away so they can run 3rd cars, lol.
02-21-2014, 12:07 PM
#3323
What is this crap?
Re: The Official Formula 1 2014 Season Thread
Lotus could start Saturday's final day of the Bahrain Formula 1 test late because of the time it will take to fly out parts from its Enstone base.
Pastor Maldonado managed just 26 laps in Bahrain on Friday as the team struggled to get the necessary mileage on its twin-tusked E22.
The problems are gearbox-related, according to the team, which produces its own units in-house.
"Unfortunately, in the afternoon we had a number of gearbox-related problems," said Lotus trackside operations director Alan Permane.
Pastor Maldonado managed just 26 laps in Bahrain on Friday as the team struggled to get the necessary mileage on its twin-tusked E22.
The problems are gearbox-related, according to the team, which produces its own units in-house.
"Unfortunately, in the afternoon we had a number of gearbox-related problems," said Lotus trackside operations director Alan Permane.
02-21-2014, 12:56 PM
#3324
Honda-Tech Member
Re: The Official Formula 1 2014 Season Thread
-I said it before, motorsports...is dead. and the fans don't really care, they bitch...but could really care less. same with the NFL. wait for the expansion teams, like international leagues and teams. just stick to the ******* script, is it that stale? do we need to "change" this? more often than not, the answer is no. just trying to please the "other" guy, you know....that guy who really didn't watch before anyway.
02-21-2014, 01:07 PM
#3325
Honda-Tech Member
Re: The Official Formula 1 2014 Season Thread
I think like anything, once a lot of money is involved there's no stopping the money from getting further involved to make more money and **** it up for the sport.
Lemons will go south once more money starts getting involved.
Lemons will go south once more money starts getting involved.