Entries in Dun and Bradstreet (1)
Money
Sunday, January 9, 2011 at 11:39AM
Today's news seems all about money. Max Mosley accused Red Bull of exceeding the Resource Restriction Agreement, i.e. overspending, in 2010. Red Bull denies this, but this agreement is so full of get out clauses it will be hard to tell. The boys cannot agree on what is "Restricted" in 2011, and presumably they have committed most of their spending already. The RRA was a way for the teams to do what Max wanted and reduce spending without him unilaterally decreeing it, so of course it is full of loopholes on what is restricted and what is not.
Then there is the great article by Dieter Rencken in this weeks Autosport on the problems F1 tracks have making money. It is really a case of restricting the losses, and reflects what I have been saying here since I started the blog. All fans of motorsport need to read this to see the mess it is in, and how it is unsustainable. As we saw with manufacturers, as soon as Governments wake up there will be no more billion dollar race tracks, and we will need all those great tracks that have been cast aside in the name of CVC's wealth generation.
Dun and Bradstreet have just released a report card on when F1 teams pay their bills. Red Bull pay promptly, which may be why they are over the RRA. If you delay paying, like Lotus which is the worst offender with 180 days late, then presumably you can delay recording the expenditure? The bottom line seems to be suppliers know they are going to get paid. One supplier commented that "if Yijay Mallya sold his yacht he could pay the team bills for the next two years." Now paying bills late is not unusual, it is "good business" for lots of companies, including the one I worked for back in the eighties. I was running a State Branch of a construction company in a small town and would meet my subs and suppliers every day, and be asked when they are going to get paid. Now they knew they would be paid, but it got wearing, so I complained to our accountant, who was also a co-owner, who just told me the money was better in our bank than theirs, and putting up with the whining was what he paid me for. Touche.
And of course there is the ongoing "Banker Bribery" scandal to fully unfold, and the situation with "pay for ride" drivers, but we all knew F1 was really about money didn't we?
Then there is the great article by Dieter Rencken in this weeks Autosport on the problems F1 tracks have making money. It is really a case of restricting the losses, and reflects what I have been saying here since I started the blog. All fans of motorsport need to read this to see the mess it is in, and how it is unsustainable. As we saw with manufacturers, as soon as Governments wake up there will be no more billion dollar race tracks, and we will need all those great tracks that have been cast aside in the name of CVC's wealth generation.
Dun and Bradstreet have just released a report card on when F1 teams pay their bills. Red Bull pay promptly, which may be why they are over the RRA. If you delay paying, like Lotus which is the worst offender with 180 days late, then presumably you can delay recording the expenditure? The bottom line seems to be suppliers know they are going to get paid. One supplier commented that "if Yijay Mallya sold his yacht he could pay the team bills for the next two years." Now paying bills late is not unusual, it is "good business" for lots of companies, including the one I worked for back in the eighties. I was running a State Branch of a construction company in a small town and would meet my subs and suppliers every day, and be asked when they are going to get paid. Now they knew they would be paid, but it got wearing, so I complained to our accountant, who was also a co-owner, who just told me the money was better in our bank than theirs, and putting up with the whining was what he paid me for. Touche.
And of course there is the ongoing "Banker Bribery" scandal to fully unfold, and the situation with "pay for ride" drivers, but we all knew F1 was really about money didn't we?