A few words on the financial state of the F1 squads

[IndyAndy]

Smaller teams being priced out?

Marussia bleeding tens of millions

Paints a very dark picture, doesn't it?

 

[forty_three]

Smaller teams being priced out?

Marussia bleeding tens of millions

Paints a very dark picture, doesn't it?

Some venues have increased the amount they charge for these facilities by 100 per cent in the last few years, although costs vary wildly. In 2012 Brazil charged the least for a hospitality unit at $7,500 (£4,660) with Abu Dhabi the most expensive at $55,000 (£34,000). A fridge in India cost $2,000 (£1,200) to hire in 2012.



That can't be for team facilities at the track, can it? They have to pay to set up at the track and compete? On top of fees to compete in the series?

Anyway, they need to do something about the lower end teams getting a share of the wealth. I get that F1 rewards top tier performance, but young, unknown drivers need to have those seats available. Look at Riccardo and Hulkenberg this year. Perez last year. Wasn't that long ago that Vettel was in a terrible car. It's a rung on the ladder that needs to be there.

What's happening now is those seats are being filled with guys that shouldn't be anywhere near an F1 grid because they can bring Sponsor money with them. Narain Karthekeian would have been working installing those $2000 fridges if he didn't have Force India money behind him. Vitaly Petrov shouldn't have been in an F1 car. Max Chilton wasn't competitive in British Touring Cars. Takuma Sato too, what a nightmare. Meanwhile Connor Daly is just sitting around looking for a ride because he can't bring a big US based sponsor who cares about the global exposure.

 

[Retroram52]

Like everything else, F1 is beginning the decline that has eaten NASCAR alive and that is the issue of money. When the haves have so much power and money that they suffocate the have-nots, the sport is headed down a suicidal path.

 

[IndyAndy]

Some venues have increased the amount they charge for these facilities by 100 per cent in the last few years, although costs vary wildly. In 2012 Brazil charged the least for a hospitality unit at $7,500 (£4,660) with Abu Dhabi the most expensive at $55,000 (£34,000). A fridge in India cost $2,000 (£1,200) to hire in 2012.



That can't be for team facilities at the track, can it? They have to pay to set up at the track and compete? On top of fees to compete in the series?

Anyway, they need to do something about the lower end teams getting a share of the wealth. I get that F1 rewards top tier performance, but young, unknown drivers need to have those seats available. Look at Riccardo and Hulkenberg this year. Perez last year. Wasn't that long ago that Vettel was in a terrible car. It's a rung on the ladder that needs to be there.

What's happening now is those seats are being filled with guys that shouldn't be anywhere near an F1 grid because they can bring Sponsor money with them. Narain Karthekeian would have been working installing those $2000 fridges if he didn't have Force India money behind him. Vitaly Petrov shouldn't have been in an F1 car. Max Chilton wasn't competitive in British Touring Cars. Takuma Sato too, what a nightmare. Meanwhile Connor Daly is just sitting around looking for a ride because he can't bring a big US based sponsor who cares about the global exposure.

point #1: I'm assuming that this is exactly what they mean. After all, you don't expect Bernie to pay this expense out of the goodness of his heart; do you?

point #2: True enough. I guess that the thing that I have never understood here is; Why don't the sponsors who want to spend money on F1 go out and actively look for the best young drivers? They can't all be a "Daddy owns the company" situation. :rollseyes:

 

[IndyAndy]

A little good new for Marussia, anyways:

Marussia signs on the dotted line with Ecclestone

Not quite the same thing as having an actual major sponsor deal or two, but it's a start I guess.

 

[Retroram52]

I'll take Vettel, Raikkonen, Webber for the final race.

 

[IndyAndy]

A couple of articles that touch on this topic:

The FIA is looking for new F1 squads:

uk.eurosport.yahoo.com

Caterham's boss calls drivers who don't bring money to the table "almost irresponsible"

uk.eurosport.yahoo.com

 

[IndyAndy]

Another article that lays out a general overview of the situation:

2013 F1 team budgets: Changes coming in 2015?

 

[IndyAndy]

Are things finally coming to a head?

smaller teams seeking EU 'intervention' in F1?

 

[Retroram52]

This is similar to what is eventually going to kill NASCAR. The battle between the haves and the have nots. What four owners now basically quietly control NASCAR? And two or three -Rousch, Hendricks, and Childress control the supply of engines because the manufacturers have reduced their involvement because of costs and the supply of in-house engineers for engine development have also dwindled. F1 is just ahead of us and similar problems exist in the IRL and NHRA although the latter still makes room for the small guys.