15 replies to this topic

[Vagabond]

I mean in principle. F1 is just business. Prost went out, Jordan is doing pretty bad too, some other teams have difficult times. What will happen then? Sure there will no be the shortage of racing, but it won't be F1 anymore. In particular what will our beloved statistics be for?

[Scudetto]

F1 teams can certainly go bankrupt, as history has seen time and again. But for F1 as a whole to "go under," I think, would be tied to Bernie's ability to satisfy he end of the broadcast bargains for each of the venues.

FOM, FOA or which ever of Bernie's company oversees the dealings with the individual tracks, guarantees a minimum grid of (I think) 18 entrants. So, should enough individual teams go under, brining the total grid below the guaranteed figure, Bernie could be facing 17 breaches of contract.

That just one possible scenario.

[lukywill]

they should have 26 cars on the grid, and some more 4 not qualified

[Robbie]

Originally posted by Scudetto


FOM, FOA or which ever of Bernie's company oversees the dealings with the individual tracks, guarantees a minimum grid of (I think) 18 entrants. So, should enough individual teams go under, brining the total grid below the guaranteed figure, Bernie could be facing 17 breaches of contract.

That just one possible scenario.

Interesting. But to whom is the grid of not less than 18 guaranteed? To the TV companies who buy the rights to cover it?

[Scudetto]

Originally posted by Robbie


Interesting. But to whom is the grid of not less than 18 guaranteed? To the TV companies who buy the rights to cover it?

Yeah, I think so. I read a piece about the minimum grid thing somewhere last season in connection with either the Kirch debacle or the GPWC.

I does make sense that the deal is with the broadcaster, though I do think the event promoter is a factor in this as well.

If I'm wrong, someone feel free to correct me.

[aportinga]

I think that as soon as the issue with ACEA and BE buying back the TV and therebe the money interest in F1 that things are going to change. Some here think that F1 will hit the crapper without the Private teams. I understand that posistion, but I honestly feel that once the manufactures take control with BE at the helm, that F1 will actually stablize itself.

They will begin to act as a unit and push for changes to the series which will cut costs and make for better racing... perhaps cost caps - R&D caps and so forth. Either way I think it's clear that all but VW and GM feel that this series IS the series for them to market the success of their brand. IMO they will want to maintain that but will do so in a far better "managed" way then in the past. In essence they will introduce a level of pro-active management that F1 has lacked.

This hopefully, will solve alot of problems

[Vagabond]

Here is another scenario: Ferrari for some reason has to pul out of F1 Will it be the end of F1?

[aportinga]

If Ferrari pulled out and went to CART... Yes.

[Scudetto]

Assuming there's a CART to go to in the next few years.

[tedmna]

To answer the thread question:

Yes, F1 can go bankrupt, just like any business!

BTW, I think Bernie's nest of companies, and the whole F1 scene, is at considerable risk right now. I'm not sure bankruptcy is in the cards, but serious contraction strikes me as almost inevitable due to the money-gobbling direction F1 has taken. And I'm not sure the car companies, which ultimately are run by some pretty conservative people, will be interested in a rescue much less setting up their own series.

[Liam]

I suppose if Bernie had to find a car or two to make up the 18 minimum, he'd just go down to the F3000 people loitering around the paddock and get them to sit in for a few laps.

[Amadeus]

Teams will go bankrupt, manufacturors will pull out.
Then the teams still in will start to cut costs (as Jordan are now doing) to fit the new economic climate.
In order to fill the grid Bernie will be forced to cut the deposit that he makes new entrants pay.
In turn, more privateers will come in.
That will in turn put more pressure on for cost cutting excercises as the balance shifts towards small poorer teams rather than the big corporate beasts we currently have

In other words F1 as a sport will continue, and chould even flourish in a harsher economic climate - it might even - God forbid - become a sport again...

[Scudetto]

Might have to blow the dust off of a few old DFV's.

[tania_walesuk]

Any business can go bust !....I guess thats also the reason to why there trying to save a lot of money in F1 and making money of the Sky Digital and stuff and if all that failed and spnsours were not enuff then yeah I rekon it could and possibly would !

[Locai]

Originally posted by aportinga
I think that as soon as the issue with ACEA and BE buying back the TV and therebe the money interest in F1 that things are going to change. Some here think that F1 will hit the crapper without the Private teams. I understand that posistion, but I honestly feel that once the manufactures take control with BE at the helm, that F1 will actually stablize itself.

They will begin to act as a unit and push for changes to the series which will cut costs and make for better racing... perhaps cost caps - R&D caps and so forth. Either way I think it's clear that all but VW and GM feel that this series IS the series for them to market the success of their brand. IMO they will want to maintain that but will do so in a far better "managed" way then in the past. In essence they will introduce a level of pro-active management that F1 has lacked.

This hopefully, will solve alot of problems

I know that the popular belief is that if you put F1 in the control of the automakers (in other words, the team owners) that its future will be secured. And it does sound like it should work, too.

The problem is that CART has been run by the team owners since its inception and it's not quite worked as well as you would think it should. The team owners have huge egos and they can never seem to agree on much. Even though CART has a person "in-charge", that person is hired by, paid by, and (on a regular basis) fired by the same owners he has to regulate.

I still think that the automakers should buy into F1. The automakers would at least ensure that the broadcasts remain free and they should do a better job of marketing the sport than the current arrangement. But, F1 needs to have someone independent of the automakers regulating the sport. They need to keep the FIA (just get rid of Max ).

[brett_sequeira]

Actually i wonder if the end of the concorde aggrement will sound the death knell for F1. According to me this sport (and i dont think it is a sport as much as a media excercise) is way too expensive. Secondly if the Tv rights is anything to go by the dominacne of the ferrari this year is killing ratings i had read this somewhere now if that happens then there is a serious porblem and someone has to look at it or we all will have to find other ways of wasting out time.