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Entries in F1 finances (3)

Blogs

People write blogs for a variety of reasons, but I do it as an outlet for opinions I have on current events, not as a news source. So, unless something moves me to put pen to paper, or hands to keyboard, then I do not post every day, especially when I am busy building a track or writing expert opinions as I have been the last couple of weeks. Moooresville is ready to pave and will be done next week weather permitting. Then to install curbs, barriers and striping and we are good to go!

So, with a lull in proceedings I thought I should at least post some thoughts, although not much seems to change. Bernie is still waiting for the shoe to drop over the Gribkowsky affair, staying away from Germany even though he was supposed to meet the guys from the bankrupt Nurburgring there over next year's contract. Mercedes are reported to be holding off signing anything to do with the new Concorde Agreement until they know something, or do they already know it? The teams are still bickering over the Resource limitation agreement and Red Bull still trying to manipulate the engine mapping. McLaren keep shooting themselves in the foot, although I guess Lewis' puncture cannot really be their fault. The rumors about Massa continue and that dog of a Ferrari cannot help winning.

Over in the MotoGP world Spies has given up on Yamaha, or is it the other way around? Rossi seems likely to give up on the Duke, despite Hayden seeming to be able to get something out of it. Not enough to keep his seat next year though. So who's left for America, and if Casey retires, Australia? How the world changes from the 80's and 90's. CRT's are here to stay, otherwise Dorna would have nothing to put on the grid.

The whole state of GP racing on 2 and 4 wheels is not healthy. Joe Saward has a piece on the business model in F1 which supports what I have been saying for a long time. It is not sustainable. When Hockenheim with 5 German drivers, two of which are World Champions, cannot fill the stands then there is something very rotten in the State of Denmark.

The GT world is not immune with Ratelli dropping out as promoter next year, and the ELMS being cancelled. ALMS struggles along with three LMP1's, only two of which can compete, and two LMP2's. Without the grid fillers in the LMPC and Porsche Cup it would be a very thin field indeed. Too many Championships here and overseas for the current economy.

Ferrari

Why is it that the 2012 Ferrari is seen as a dog, especially by the team? While we have had five different winners this year, including Ferrari, Alonso has been there abouts in each race. Now I am a fan of his and feel he can impact the performance of a car more than the average F1 driver, but even he cannot be doing this with a car as bad as everyone makes out. Quickest in first practice in Monaco, and right there in the second without using the super-soft tire that Jenson did. So how bad can this car really be?

On the other side McLaren were seen after the first race to be odds on to win both Chamionships, but look what's happened to them. OK, they have shot themselves in the foot a few times, but that does not tell the story of Button's bad races in China and Spain. So what's real here?

Like Ferrari the Lotus team seem to able to competitive everywhere this year, so perhaps a sixth race winner?

Nice to see the changes to the chicane on the harbor this year, much better.

While the racing goes on the fight to make money from the sport continues unabated. If $1.6bn can be raised by selling shares privately why do CVC, or is it Bernie, feel the need to float it public? A normally very private man when it come to money it is hard to understand why Bernie would want the public scrutiny that comes with a stock exchange listing. Bernie is right though, if Facebook is worth $100 bn then F1 with its returns to investors is a steal at $10 bn. I loved the comment about his replacement, comparing it to trying to find a replacement for Frank Sinatra.

F1 is only worth $10 bn though if the race promoters continue to cough up the exorbitant fees. Let's look at the current calendar. Australia is losing north of $50m on each race and the Government is under pressure. Malaysia has less attendance than Australia and by reports is not happy. China has never had a crowd, but will probably hang in there. Bahrain has plenty of money but no one wants to go. Barcelona cannot fill the seats even with Alonso and is hurting, but still wants the race. Their mates in Valencia keep reducing the number of seats and want to alternate with Barcelona. Monaco is Monaco and does not pay Bernie anyway. Then we have Canada where the students are threatening to stop the race, and Bernie wants a bunch of money spent on the track, i.e pit building, before next year. Silverstone is desperately trying to find someone to lease the facility to pay off their debts. Germany has Nurburgring and Hockenheim, neither of which can afford it. Hungary has always been an enigma, Bernie presumably promotes this race. Belgium is in trouble like Germany and was touted to share with France, except France is not playing ball with them or Bernie. In Italy the financial police have just raided Monza over dodgy accounts. Singapore will presumably continue at a lower price as their reward for floating F1. Japan is a year by year deal and could stop. Korea already wants to stop and apparently Bernie has done them a deal. India has not yet worked out what it is really going to cost them, as with Austin, which is still fighting within themselves. Abu Dhabi has spent so much money on Yas Marina they have to keep going, and then there is Brazil which is faced with building a new pit building. So, not all rosy in the F1 world.

What of the new races I hear you ask. Well we have New Jersey here in the US which no one knows who is paying for it. France is having second thoughts, and all is not smooth in Russia. Argentina is scheduled to join the Bernie supporters club, and there are always countries willing to pay Bernie what he wants it seems, but for how long?

Over at MotoGP things aren't much better with the current World Champion saying he is retiring at the end of the season as he does not like where that sport is heading, and neither do most of us.

On a final note the extensions to the track I built at Eastern Creek in Sydney back in 1989 have come in for some stick, particularly from motorcycle racers. Perhaps now I will receive some recognition for what I built originally on a difficult site. No, it was not Phillip Island, but there again, nothing else is.

Daytona

The Rolex 24 hour at Daytona started yesterday with practice and qualifying, with the newly reshaped Daytona Prototypes, DPs. They look somewhat sleeker, but are unlikely to win over fans used to Audis and Peugeots. Ryan Dalziel took pole in the Starworks Ford ahead of the might of Suntrust and Ganassi, but only just. In the GT class it is Brumos Porsche ahead of 458 Ferrari and another Porsche, but all in the 1.49.3 bracket, so very close. It's a long race as they say in the classics, and we can watch on Speed at 2:30 EST. Look out for Alan McNish in that Starworks DP, quite a change from the R18!

Elsewhere the economic fallout continues for F1. We have seen the BBC basically giving back the F1 coverage as it could no longer afford it, and now Spain's broadcaster has done the same with just weeks to go to the first race. Joe Saward is continuing the rumors about the financial viability of Sahara Force India, and we know Williams are struggling on that front. And who would give HRT much hope? Add to all that the Valencia, Korea, Japan, Spa, Nurburgring, Hockenheim, France situation and it would seem Bernie and CVC might be facing a difficult time continuing with their money pit. Not to mention Melbourne. I and many others have long suggested that the current business model is unsustainable.

Rubens Barrichello is off testing and Indy Retirement League car. Good luck to him, why not join his other Brazilian mates.