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Cash-flow crisis puts F1 teams at risk for Melbourne


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#151 SanDiegoGo

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Posted 05 March 2015 - 20:43

Yes, but I was talking about the teams not the owners or names.

 

 

given the personnel exchange that goes on in F1 the force india team will almost certainly no longer contain any personnel from jordan. which means it can't even be considred the same team.


Edited by SanDiegoGo, 05 March 2015 - 20:45.


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#152 Nathan

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Posted 05 March 2015 - 21:06

 

Doesn't FOM stand for Formula One Management?  Aren't they supposed to be managing and promoting F1?  How does letting competitors drop out of the sport fit with that objective?

 

Good managers don't toss good money after bad.  Now as we hear Bernie - bless his heart - is going to open up his wallet and help good teams out.  You knew he would...he always has.  At least with Lotus/FI/Sauber we can think back three seasons and at some point in that window say each of those teams did some impressive work. So no, you don't want those kinds of teams missing races.

If said competitors are not good teams a good manager lets them fail. A car always pounding around at the back, never really progressing isn't really creating revenue for anyone.  Not the other teams, not the track promoters, TV companies, not FOM/CVC, and evidently not even for themselves!  So why should the HRT/Caterham/Manor/Forti/Larrousse/Pacific/Simtek be propped up?  How is Caterham going under effecting FOM's objective to promote the sport and make money?


Edited by Nathan, 05 March 2015 - 21:09.


#153 Nick Planas

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Posted 05 March 2015 - 22:17

given the personnel exchange that goes on in F1 the force india team will almost certainly no longer contain any personnel from jordan. which means it can't even be considred the same team.

Sorry that's not true. Everyone I know of in my home town (Brackley) who worked for EJ still works for SFI, with one exception. By all means, the "high up" people may change on a regular basis but remember there are hundreds of folk who live locally and who have no desire to up sticks and leave.



#154 SanDiegoGo

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Posted 05 March 2015 - 22:58

Sorry that's not true. Everyone I know of in my home town (Brackley) who worked for EJ still works for SFI, with one exception. By all means, the "high up" people may change on a regular basis but remember there are hundreds of folk who live locally and who have no desire to up sticks and leave.

 

so would you consider force india to still be jordan?


Edited by SanDiegoGo, 05 March 2015 - 22:58.


#155 Peter0Scandlyn

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Posted 06 March 2015 - 03:40

Good managers don't toss good money after bad.  Now as we hear Bernie - bless his heart - is going to open up his wallet and help good teams out.  

 

Yes bless his altruistic heart. Absolutely.

 

We'll just not consider the one sided secret agreements he has established with the teams to consider that money being released presently represents the final tranche of what they have earned for their efforts during season 2013.

That's 2013, by the way. In case you blinked......

 

It doesn't seem unreasonable in 2015 that they might be holding out for their 2014 earnings, because, after all they've EARNED it. But Bernies secret squirrel act keeps the payout terms hush hush.



#156 Petroltorque

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Posted 06 March 2015 - 06:26

Good managers don't toss good money after bad.  Now as we hear Bernie - bless his heart - is going to open up his wallet and help good teams out.  You knew he would...he always has.  At least with Lotus/FI/Sauber we can think back three seasons and at some point in that window say each of those teams did some impressive work. So no, you don't want those kinds of teams missing races.

If said competitors are not good teams a good manager lets them fail. A car always pounding around at the back, never really progressing isn't really creating revenue for anyone.  Not the other teams, not the track promoters, TV companies, not FOM/CVC, and evidently not even for themselves!  So why should the HRT/Caterham/Manor/Forti/Larrousse/Pacific/Simtek be propped up?  How is Caterham going under effecting FOM's objective to promote the sport and make money?

You raise and interesting argument here, but I don't think Ecclestone advanced money to Lotus, FI and Sauber because they were well run or had a historical significance. More likely he did not want to breach his commitment to track promoters.
Just as the economic crisis in Europe shows that you can't fund economic growth with debt, it would seem you can't fund F1 performance with debt either.
FI and Sauber all have unsecured debt and that $10 million advancement might keep their head above water. The same can't be said for Lotus. Their debt is reputed to be $150 millions and clearly Genii Capital are no longer willing to underwrite it. It's not like they are too big to fail. The sums don't add up for Lotus since any money they might gain from improving their position no longer funds their costs resulting in more spirally debt. It remains whether their 'Good' managers will pull the plug or leave that to the banks as happened with Caterham.

#157 SonJR

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Posted 06 March 2015 - 07:31

You raise and interesting argument here, but I don't think Ecclestone advanced money to Lotus, FI and Sauber because they were well run or had a historical significance. More likely he did not want to breach his commitment to track promoters.

This will really be what will keep the little guys alive, until we get third or customer cars pushed through. All bets will be off then.

 

On another note, I cringe whenever I refer to FI, Sauber and Lotus as little guys, with their 300+ staff and 80-120 million budgets. Such ridiculous growth since the 80s/90s.



#158 kevinracefan

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Posted 06 March 2015 - 13:02

so would you consider force india to still be jordan?

Eddie's forgotten more about managing a team than Vijay has ever known... quite a downgrade of mgmt. when they changed names (of that "same" company)...