Reply to: FI teams in breakaway threat

[centurian]

I think a lot of people probably think F1 has hired Silverstone for the weekend, but it's the other way around. A big part of the issue with Silverstone is that they have to pay an enormous amount to Bernie to host an F1 race, and despite the silly ticket prices they still operate at a loss each year. And Bernie then gives them a hard time about not spending money on the facilities.

But the money isn't the biggest issue here, it's more about Max Mosely thinking he can do whatever he wants as he is president of the FIA, and F1 belongs to the FIA. Except what is F1?

I think what the fans want to see is the historic teams like Ferrari, Mclaren and Williams employing the best drivers, and racing on the historic circuits like Silverstone, Monaco, Monza etc. And without the fans, there's no sponsors, no TV money, and Bernie and Max are left with nothing (well not Bernie because he still has his 2 billion).

And that is part of the FIA's problem right now because they have arranged everything so that they don't actually do anything and just manage the brand. This means massve profits for virtually no risk. FOM made $447million last year from a turnover of $750 (about a 60% profit margin ). Track owners lose money, the teams lose money, but the FIA/BE simply can't lose.

Except when people start thinking, "well what is F1 anyway except a name". If they're not actually doing anything, we can set up another series. We have the cars, the drivers, the sponsors, the fans, the race promotors.

In that scenario, the biggest losers would be CVC, who would have ended up paying billions for a brand name that becomes worthless.

However, I still don't see it happening. I think there will be a compromise agreement made.

[VectraMan]

Now with massive debt to pay, CVC needed Ecclestone to go out there and make some serious money. New venues with state funding willing to pay top rate for a Grand Prix were given the nod by Ecclestone as the series began its drift away from its traditional heartlands of Europe and North America, to new venues in the Far East."

I think a lot of people probably think F1 has hired Silverstone for the weekend, but it's the other way around. A big part of the issue with Silverstone is that they have to pay an enormous amount to Bernie to host an F1 race, and despite the silly ticket prices they still operate at a loss each year. And Bernie then gives them a hard time about not spending money on the facilities.

But the money isn't the biggest issue here, it's more about Max Mosely thinking he can do whatever he wants as he is president of the FIA, and F1 belongs to the FIA. Except what is F1?

I think what the fans want to see is the historic teams like Ferrari, Mclaren and Williams employing the best drivers, and racing on the historic circuits like Silverstone, Monaco, Monza etc. And without the fans, there's no sponsors, no TV money, and Bernie and Max are left with nothing (well not Bernie because he still has his 2 billion).

[centurian]

Which is why most of the teams are peeved about the whole situation.

They're being told that they have to make long serving employees redundant because apparently there isn't enough money to sustain F1 - yet half the money gets siphoned out of the sport...

I'm not sure it all goes to Bernie himself as I believe he sold on part/all of the rights to a venture capital firm, but still a big wedge...

http://en.f1-live.com/f1/en/headline...19220453.shtml


"To make things simple, effectively CVC purchased the rights from Bernie Ecclestone and his collection of companies. Ecclestone had previously purchased the commercial rights from the FIA for a 100-year period.

Now the precise details regarding the financing of the deal is complex and tedious, but CVC borrowed the reported two billion plus US dollars to purchase the rights to the series. Bernie Ecclestone was retained as CEO at CVC and remained in control of the sport he had nurtured and developed.

Now with massive debt to pay, CVC needed Ecclestone to go out there and make some serious money. New venues with state funding willing to pay top rate for a Grand Prix were given the nod by Ecclestone as the series began its drift away from its traditional heartlands of Europe and North America, to new venues in the Far East."

Two billion to buy out Bernie...

[centurian]

I read somewhere that Bernie gets 50% of the income from F1?

Which is why most of the teams are peeved about the whole situation.

They're being told that they have to make long serving employees redundant because apparently there isn't enough money to sustain F1 - yet half the money gets siphoned out of the sport...

I'm not sure it all goes to Bernie himself as I believe he sold on part/all of the rights to a venture capital firm, but still a big wedge...

[Moscow Mule]

Umm, don't they all have the same tires these days?

Not at the same time. Few of the races seem to have been won on tyre strategy rather than brilliant driving (there's been some of that too).

[Churchill]

WHS but she bought the tickets, which was very kind of her!

Hotel booked for the night? Champagne on ice?

WTF are you doing posting on this forum? Get in there!!!

[Menelaus]

I think if your a bloke it's actually a criminal offence to go anywhere near a formula 1 car without one, unless you are the driver or part of the pit crew?

WHS but she bought the tickets, which was very kind of her!

[snaw]

What happened to A1 ?
F1 is ridiculous now - it all seems to depend on the tyres.
They should have robot driven cars and lots of crashes .

Umm, don't they all have the same tires these days?

[ace00]

What happened to A1 ?
F1 is ridiculous now - it all seems to depend on the tyres.
They should have robot driven cars and lots of crashes .

[thelace]

Young Lady of My Acquaintance

Has she got a mate?

[Peoplesoft bloke]

IMO for too long Max and Bernie have been running it like their personal fifedom.

I am only suprised it has not happened before.

Been threatened before - hope it sticks this time, but I bet it won't.

[PM-Junkie]

Young Lady of My Acquaintance

I think if your a bloke it's actually a criminal offence to go anywhere near a formula 1 car without one, unless you are the driver or part of the pit crew?

[Menelaus]

Ylma?

Young Lady of My Acquaintance

[cojak]

Ylma?

[Menelaus]

IMO for too long Max and Bernie have been running it like their personal fifedom.

I am only suprised it has not happened before.

I read somewhere that Bernie gets 50% of the income from F1?