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Posted By: James Allen  |  17 Nov 2011   |  12:17 pm GMT  |  131 comments

The leading F1 teams are in the thick of an argument at the moment about how much money they should be allowed to spend every year to go racing, with Red Bull out on a limb, taking a different view from other FOTA members about the next phase of the Resource Restriction Agreement.

If it all goes wrong, as some predict, this could lead to a new arms race in F1 with Red Bull, Ferrari and Mercedes able to spend more than McLaren (which no longer has Mercedes factory backing as it did in the last “Arms Race”) and far more than the midfield teams. Let’s hope it doesn’t come to that because everyone loses in that scenario.

Against this backdrop it seems a good opportunity to review some quotes which came to light during the preparation of a Financial Times Special Report on F1, which I helped produce last week. My colleague John Reed spoke with Jean Francois Caubet, who manages Renault’s F1 engine programme, and he spelled out the amount Renault used to spend on the sport and how that compares with what they outlay now, being just an engine supplier. He also confirms that Renault threatened to quit the sport completely this summer over the 2014 engine rules.

“We are a total cost around €120m,” said Caubet, explaining how much they spend on the existing engine programme. “The net cost – total cost minus sales – is €60m. For €60m you have a big exposure in the world”

This is interesting for a number of reasons. It shows that
the costs are still high; Renault still spends €120 million a year even though the V8 engines are frozen from a development point of view. The company supplies 16 racing engines a year plus test engines to Red Bull, Lotus Renault and Team Lotus (soon to be renamed Caterham). Next year they will add in Williams to the roster.

This is a huge saving compared to the time when the French car maker ran its own team, which it sold at the end of 2009.

“In the past the total cost of the team was between €250-280m. (But after deducting) sponsorship and TV rights, net cost about €180m.”

In other words Renault is now spending a third of the amount it spent to run its own team in 2009. It has won the world championship for the last two years with Red Bull Racing. This arrangement seems to be working well.

“We have a five-year deal with Red Bull. In the past it was difficult to have a long-term strategy, because the strategy was linked to results. 
For a carmaker, you can’t explain what’s your budget in 5 years on a team,” added Caubet.

“Also we have a long-term strategy on advertising – Renault will do more advertising, more pr and more communications.

“When you control the team, you must win. And if you don’t win, the cost is so high. If you have a crisis, the sponsorship stops like BMW, Toyota, Honda. Because you are a carmaker, you need to win. If you don’t, the board asks the question.”

Caubet also confirms that Renault threatened to pull out of F1 altogether if the new generation 2014 engine wasn’t introduced, “We pushed the FIA to conclude on new regulation – concluded in June. Either the new regulation is clear and we will stay in F1 or we keep the same engine and Renault will stop,” he said. 


The 2014 engine is very important to Renault because it wants to scale down road car engines and the push is towards turbo hybrids, which is what the F1 engines will be. Just as Renault pioneered turbo engines in F1 and then took them to road cars, now turbo hybrids will tie F1 to the consumer market.

“It will be downsized, fuel efficiency, and a big part on the electric side.” he said. “We think in 2015-20, probably 80% of all the engines in the world will be downsized, probably turbo, and with hybrid or electric power. 


“We took the decision to stay in F1 only if the new engine was relevant and the new regulation was relevant.
 We now start the race with 170kg of fuel. In 2014 we will start the race with 130kg – nearly 35% less. Each year we are pushing to decrease the fuel consumption by 5%. It’s difficult to reach this goal.

“Today the engine is more of a commodity; in three years, it will be the key thing that makes you win or lose the race.”

It will be fascinating in 2014 when engines become performance differentiators again, something they have not been since the V8 engines were frozen.

You can read the Financial Time F1 report HERE

The JA on F1 2011 limited edition collectors’ review of the year “Vettel steals the show” is now ready to pre-order. A large format 240 page paperback, it comes out on December 12th, costs £9-99 plus postage and can be sent anywhere in the world. All copies bought through this site are personally signed by James Allen.

To order your copy, click HERE

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1

RED BULL willl disappear one day. After all its just a drinks company. Even the Japanese-gaints pulled out from F1. How about these guys.

I don’t think Red Bull can dominate much. It will not work even if Adrian stays there or not.

2

F1 is a sport of passion, For GLOBAL CAR MANUFACTURERS (please note Mclaren is not a global car maker, so is not taken account in this) you need passion to be in F1 and no where the passion is displayed more than in Ferrari. They have stuck with F1 even when their team was going through hardships (period between 1979 and 2000). No one team has shown the determination as Ferrari has, teams like Honda, Toyota, Renault have gave up on F1 when their respective teams were not performing… Ferrari never gave up… And have proven that they are the gutsiest spenders in F1. Wonder how many teams can continue spending hundreds of millions when their team is going through a slump in their respective teams form for 21 years? in a sport where careers and existences are gauged on a year-on-year basis.

Hats off to Scuderia Ferrari 🙂

3

Hats off to McLaren and Williams for resisting some of the the excesses of the “constructors”

who also have a long rich history in F1.

4

Petrov has since apologised for his comments.

5

Hi James

Could you tell us what you know about the latest rumours regarding Kimi Raikkonen wanting an equity stake in Williams before he will sign with them?

6

I cannot confirm. Bear in mind that he owns a racing team with Steve Robertson. Steve and his father David were in Abu Dhabi at the weekend. The team’s shareholding has changed significantly in recent years with Toto Wolff buying in and then a floatation on the Frankfurt exchange earlier this year. If Raikkonen was planning to stick around at Williams it would make sense to ask the question – but I don’t see his negotiating position being that strong at the moment

7

Perhaps he is looking for an equity stake in lieu of a big salary.

It just seems to be heading into murky waters if a driver has a stake in the team, as he would be a part owner he would automatically assume that he is the defacto no.1 and want a say in other aspects of how the team is run as well. Just adds a layer of complexity that I can’t see working.

With that in mind, if Williams build a really quick car, this would surely affect their ability to attract another top tier driver who could not be guaranteed equality in the team.

8

Owning an F1 race team is a very shaky business, and sucks money like water through a fire hose. He would have to be very, very careful making such an investment. Look at all the other small players that have come and gone over the years? Small-time owners have a poor track record – pardon the pun. If I was Kimi, I would be very dubious on this move until you were sure that Williams were definitely “on the way up”. Then you could at least get your money back if you had to bail. But – Kimi is no dummy – I bet he knows that.

9

Here’s what I think based on what I’ve read:

As far as I know HRT, Virgin and Team Lotus (Caterham) are spending a fraction of the big four and probably still quite a bit less than the Saubers & Torro Roso’s of the world. They are far off the pace, Lotus less so, but not THAT far.

If I had to choose between teams spending $40m to let’s say $80m a year + less tracks drama + people in the grand stands + races on circuits that are there for the good of the sport and not the boss’ pockets OR spend what they spend currently + all this other nonsense I’d much rather go with the former.

Yeah there’s less innovation at the back of the grid, but what the heck do we have blown-diffusers for. Don’t get me wrong, I love F1 and all the tricks, but not at the cost of the sport. And lets not forget from our point of view sport is there to entertain. NOT to frustrate the crap out of us, because we have to race at Valencia or teams keep coming and going and have to put up with all the drama.

Let’s freaking race.

10

how does cosworth compare to renault with respect to how much $ was invested this year on the engine?

11

Less

12

Hi James,

What do you think of the rumours that Lola may be making a return to F1 in 2014 if the FIA open up the 13th team slot? It would be great to see them return. Which other teams/manufacturers are also looking to come in?

13

It’s a good way of getting a brand loads of publicity. How many things is Virgin always “poised” to do that they never actually do?

14
Michael Terminello

Alot haha, I wonder what is next for Virgin. They’ve done so well with the Airline, that new spacecraft and of course being a major sponsor of Marussia etc.

Speaking of Lola I’m sure you remember this from 1990! With the Lola Larrousse Lamborghini V12: http://www.youtube.com/watch?v=wuyt0C5JhAc

I hope they return it would be great for the sport. There are so many teams/manufacturers I’d like to see in the sport or return to the sport.

15

James missed a key point : The branding of RBR cars as ‘INFINITI’ – Renault-Nissan’s US aimed luxury brand that is bringing in some positive advertisement. All in all, RBR is now the unofficial works team for Renault. Ferrari and the rest of the grid will have to really dig deep down their resources now to beat RB-Vettel-Newey-Renault partnership. They are the new “horsemen” aka Ferrari of 96-06.

If i were Whitmarsh, i would be sending “feelers” to Honda by now. Honda loves engine challenges and have never been really good making chassis ( just follow the HRC history esp in MotoGp). Mclaren-Honda have historic relationship which is almost legendary. If Mercedes are to back their own works team, Mclaren will really be out their on their own and will need a new partner.Honda could be the perfect fit.

Also, if Renault are spending 120m euros/year on Engines,compared to 250m euros on the entire team,that means engines make up half the cost of running a full works F1 team! Quite honestly, i’m a bit surprised. I never thought engines made up 50% of all F1 expenses.

16

I would have thought that it was common knowledge that Engines make up over 40% of a teams Budget, hence why Engine Freeze was critical even before RRA. Aero Important yes, but the Engine pre-Freeze was the main performance differentiator. Remember when BMW wanted into F1, poured a lot into Engine first, concentrated heavily on the Engine until they decided that Williams wasn’t making good enough chassis anymore and they could do a better job, which they duly did.

17

On your last comment, not quite. That’s the cost of supplying all three teams they are supplying currently.

18

McLaren and Williams are the only two teams that are able to claim that they are racing teams first, something else second. Quite frankly, it should be embarrassing for Ferrari that Red Bull and McLaren are ahead of them. For all the resources and experience they have, Merc and Ferrari should be walking every championship. The fact that they aren’t – and particularly that Merc are still so far off the pace – is, quite frankly, quite amusing.

Long live racing teams that are racing teams first, something else second. You don’t hear McLaren or Williams threatening to throw their toys out the pram every couple of years like you do with Luca de M, do you?

19

Well, you forgot to mention Sauber and Force India. And in past you name from BRMs to Minardi Ah and even HRT till mid-season this year. So, honestly, a large portion of the F1 fraternity from past till date and in future can claim and will always be Racing Teams First and Everything else second.

How many Car Manufacturers are there? Only two mind you, Ferrari and Mercedes (They build everything including the engines). Ferrari and Mercedes can claim being the only teams that have raced 100% genuine race-cars even before F1, Bruce Mclaren and Frank Williams were born.

Even in today’s these two teams Ferrari and Mercedes have 100% genuine race cars.. not bits and pieces including engine, being supplied to them by external sources including Ferrari and Mercedes.

So Two 100% teams Only – Ferrari and Mercedes, rest are collaborative side-casts 🙂

20

I diddn’t realize that a team had to supply all their own parts to be considered a genuine F1 racing team. Quite sad to have such a view, especially when RedBull and McLaren have beaten the “constructors” easily for the past two years! 🙂

21

“McLaren and Williams are the only two teams that are able to claim that they are racing teams first, something else second.” Dear old Enzo would turn in his Grave if he ever heard a statement like that. Williams realised very late that basing ur entire business model around just the F1 racing operation is a terrible idea, McLaren almost made that same mistake. Enzo didn’t, this visionary realised that sometimes Racing Alone wouldn’t be enough to pay for the Carbon Fibre and he might just have to sell something to continually Fund his racing habit, Hence why we have said 458 Italia today. Although Ferrari Roadcar division might be bigger than the F1 operation, the F1 operation will always be the jewel in the crown.

22

Agree:

A large part of Ferrari racing budget is apparently generated by the road cars which as you well know, the reason that the road cars exist today.

23

With USGP not replaced theoretically there is a slot empty which I imagine any independent constructor would have to go through a bidding process. If say Toyota or Honda or any other major manufacturer wishes to come back to F1 as a constructor is the door just opened for them

Very insightful article James. Perhaps those who ask what is the point of a teams like HRT or Virgin and criticize midfield teams for taking on pay divers at the young drivers test should bare this article in mind.

24

McLaren are working on their own engine, which is first in the road, and then a few years later will find its way into the F1 team. Like a lot of other parts of this group they could also make then for other teams.

Ferrari been part of Fiat, and if you look at the limited figures on Ferrari, it is only just breaking even, so they need support from their parent company. As for Red Bull, what they spend on racing, all their teams, not just F1 they are currently getting a good return on capital spend, (Brand awareness) but there overall marketing budget is small in % terms of revenue as say compared to Coke Cola. The big daddy of the sugar drink world.

McLaren are extremely good at getting in AAA sponsors, plus it helps to be wining or there about at each race, so I think they will do OK, in the short term and long term. I would worry more about Williams, as the third team that we need on the grid.

One wonders, that after a while Red Bull reaches a certain market share in all there targeted countries, but F1 cost keep on increasing, would they stay in or sell out. So far there isn’t any spin off’s from there racing team in the same format as what we see at McLaren and Williams.

25

Xysion made a valid point on an earlier post!

Ferrari hasn’t needed support from the parent company for over 15 years.

Do you seriously believe that Ferrari who have Marlboro as a silent partner, pumping millions in every year, the TV money and the extra amount that Bernie arranged for them, their merchandising sales that dwarf everything else in F1 and then on top of this the road car division that sells everything they produce, they most certainly aren’t breaking even.

A few years ago when Fiat was having financial problems, there was talk of selling Ferrari which would clear all their debts, they didn’t and have turned profitability around for the parent company but don’t underestimate just what Ferrari is actually worth.

Regarding Mclaren and AAA sponsors, you may not realise for example, Ferrari had Vodafone sponsorship and told them that for the following season, 2006 I believe, that there was no space on the Ferrari because Marlboro was paying for it all. Ferrari turned away a $80,000,000 sponsorship deal.

Vodafone may have moved to Mclaren but they don’t pay that sum for title sponsorship.

26

Hate to break it to you kid but Vodafone dropped Ferrari not the other way round. http://edition.cnn.com/2005/SPORT/12/14/vodafone.sponsorship/

They saw better marketing opportunities with McLaren and were increasing frustrated with Ferrari performance and their treatment of the sponsor. You serious think Ferrari turned to a major sponsor and said bye bye.

27

The word was Vodafone wanted to be Title Sponsor and Ferrari was not willing accept that. That is why they parted ways. Its not coz’ Ferrari wasn’t winning and Mclaren was all conquering. As a matter of fact Ferrari shamed Mclaren in year very year Vodafone became Mclaren’s Title Sponsor by Kimi winning the World Championship. And since, Mclaren won just single world championship since it became a Title Sponsor of Mclaren. That is by no means can be categorised as Feat Extraordinaire 🙂

28

The Marlboro money has been declining over the years. At one time Shell actually paid more than Marlboro. Yes Bernie keeps them very happy with extra funds, but they are the top payers in salaries for their team as a whole, not just the drivers across the grid.

There car division needs the support for Fiat and in the past, they have had development grants from the Italian Government. Last year for example they had one. It also doesn’t mean that if you sell out a range, that it makes you money, or a profit, far from it, as other car companies in the super car market will testify to.

As for the mechanise, they are fighting all around the world with counterfeit mechanise. I agree if they had all the profit on the sales of all the counterfeit goods then yes, your claim would carry water.

As for the Vodafone deal, I actually do know a lot about it, and your figures are extremely high to the point of someone been very economical with the truth on what was paid or not.

29

I am sure the drivers would love to see the end of the RRA… Who can forget Schuey pulling down $75mil a year! His days with that kind of packet are done, but I am sure Seb, Hamilton, Button, and Alonso would surely love to return of the old days.

30

I don’t remember the exact figures, and even then they used to be “informed” journalists for Autosport and such, but in 1996 he was paid $25,000,000 and maybe by 2006 he was earning $30,000,000 from Ferrari etc.

Any amount above this, let’s say the $50 million to get to $75 million would have been his hugely successful merchandising business which was masterminded by Willy Webber, his manager.

From the vague sources I have read, Alonso is on a $30 million retainer with Ferrari currently

31

If my memory serves me correctly, most of Schuey’s 35 mil salary came from Philip Morris and the rest from Ferrari. And yes, his merchandising was a huge boost!!!!! Alonso is overpaid in comparison with his delivery, so far, of victories and WCs. As great as Alonso is, his inability to amasss a ‘dream team’ like Schuey did will always be that roadblock

32

All I can say is… There will never be A Michael Schumacher… That persistent determination, that ability to take the car beyond its engineering capabilities, that ability to build the team around him, that brutal uncompromising execution… He is definitely was way underpaid at Ferrari or any other team he would’ve been at his helm… Even at his age when his generation of drivers have become ‘Armchair Experts’ he is still teaching ‘propaganda stars’ a thing or two.

He is a legend and must be honored in that very manner 🙂

33

Eric Alonso is not overpaid, I beleve that he is currently the best Driver on the Grid, in my view certainly not the Fastest, but certainly the craftiest, and the best all round. Massa struggles to 5th Race after race (2008 Championship contender) while Fernando hurles that 150th to podium contention and sometimes race wins. Alonso’s inability to amass a DreamTeam, comeon you can’t judge him on that, Ferrari are lucky to have him and in my opinion they aren’t paying him enough.

34

Drivers salary are not part of the RRA.

35

Fascinating article again James. How does Williams factor into this future with their possibility of KERS licensing, and public ownership of shares?

36

I am wondering whether you are going to write about it, James.

HAMILTON vs BUTTON – How Witmarsh is playing it?

I am not a McLaren fan and I do not have any preference (Hamilton or Button), but I really-really started thinking that Button is becoming the golden boy for Witmarsh. Probably he deserves it, probably he has done something people did not expect him to do. Probably Hamilton is no longer a motivation and inspiration to many people and his life style far from what McLaren wanted him to be to lead the team.

I think….Button is taking the lead at McLaren and it will not be easy for Hamilton to come back.

37

This would be a story I would read with a great deal of inetrest – an insider’s view on what seems to be so obvious so so many fans…

38

Yes I am to be the new number 1 McLaren driver for 2012. That boy Lewis just doesn’t fit the Mclaren Image anymore.

39

James, how do you and other insiders assess McLaren’s capabilities of building their own 2014 engine? That is part of their plan right, to come with an own McLaren engine? Or did I miss something?

How are they planning to build that engine? Is it true that they took over BMW’s former HP engine capability?

Thanks!

40

One hears that, but the capital cost would be huge. They have a deal on road engines with Ricardo, in any case. Not in house

41

now here is an interesting rumour: http://www.f1reports.com/f1/article/13458/?utm_source=dlvr.it&utm_medium=twitter

McLaren-Honda in 2014?? Was Ron spotted with anyone from Honda?

42

Hi James,

Toyota are clearly the leader in developing hybrid road cars. Do you think they possess some new technologies which can be integrated into F1 at 2014 new engine formula? Thanks!

43

Toyota will also be taking part in the 2012 FIA World Endurance Championship, showcasing a hybrid LMP1 co-driven by former Benetton, McLaren and Williams F1 driver Alex Wurz.

44

No Toyota are not interested in F1 any more. They are interested in FIA Formula E championship, though – for EVs

45

I REALLY hope that engines become important again in 2014 but I thought there will be another engine freeze and all and it will be just like now?

46

With all the talk of McLaren being the poor underdogs without the huge commercial enterprise backing them up, I hear no mention of Vodafone. When anyone in the team talks it’s always “Vodafone-McLaren-Mercedes” and Vodafone is an enormous global enterprise. Also, I think I heard that McLaren supply the standard ECU to the rest of the teams. If this is correct, surely that represents an additional revenue stream.

47

Linked with Vodafone, Glaxosmith and the Bahrain Royal family. Hardly the bed fellows of a poor underdog.

48

They do, primarily because it allows the FIA to control electronic systems such as traction control etc which some teams where using in subtle ways against the rules.

These electronic black boxes are provided to the teams, but they are not consumables like tyres, so would not wear out.

I wouldn’t believe the FIA would have sanctioned their production by Mclaren, if they were going to be a cost item anyway.

49

But what about the rest of the teams? How will they manage to survive in a free for all? They get the least of the Money Pot – (arguably the teams that need the most get least, the rich teams getting the most) – and need to put more into R&D! F1 need these teams!

50

Good read! Like the bit about the 2014 engine rules and how it may give the engine a bigger part in the success of a team. Wes hall see if it comes to be true. If it can be properly and equally Impossed, I feel fixing a spending ceiling, is the right way to help the sport from becoming a 3-4 teams serie, each fielding 3-5 cars. As it is with the present spending rules, teams might be far apart in performance, from the top to the least performant team, but imaging what that gap would be if the richer teams could spend as much as they would feel is needed. I don’t even know what the limit that was set is, but it did not seem to have handicapped teams in producing Ever faster cars. How much is that limit? Marc

51

It will possibly be true if Mercedes has decided to separate from Mclaren….about others FERRARI is & will be the biggest spender as always..

52

It is easy enough to understand. Ferrari, Mercedes and Red Bull have more money then McLaren. They have got massive independent incomes outsides Formula One. McLaren use to when Mercedes was pumping money into them. They do not now.

53

McLaren have the most stable sponsorship stream of any team on the grid, not to mention strong investment outside F1. Yeah they don’t have Mercedes cash reserves but look how well its working out for Mercedes. F1 ain’t all about cash, its what you do with it that counts.

54

No.

Ferrari have the most “stable” sponsership stream in F1. The entire advertsing space on their cars in taken up. Ferrari’s deal with Philip Morris is the biggest sponsership deal in F1 and probably in the world. It is estmated to be worth over $1 billion. If you go to the official Ferrari web-site it still has Phlip Morris as one the offical sponsers.

You are right that F1 is not about cash. Hence the reason why from 1999 to 2008 Ferrari won the same number of Constructors titles as McLaren have in their history, ironically enough when there was no RRA.

Many on here in defence of McLaren seems to ill-informed or just plain ignorant.

55

@Jack

Why should I be proud about Ferrari are able to seek money from tobacco sponsership? Stop yor presumptious nonsense. I was stating the facts. The second paragraph was irony at your “F1 is not about cash” remark. It is not hard to understand. The more money a team has the more resources at it’s disposal. That means better results.

@C B Smith

Care to name those successful businesses? The only truely successful businesses in Formula One Teams are Ferrari, Red Bull and Mercedes.

Your partisan nonsense is not even worth a proper reply to be honest since no one can properly reason with you with your British tinted shades on. Maybe James Allen is also ill-informed since he did say McLaren could not keep up with Ferrari, Mercedes and Red bull without RRA?

56

Ill informed? It seems the greatest ignorance comes from those who are passing negative comments about the team……know very little about McLaren’s other very successful businesses.

I doubt McLaren have the same financial strength as Ferrari but F1 is no longer about one team that races with red cars….other teams have a long proud history in this sport.

57

Well you should be proud Ferrari are able to seek so much money from a Tobacco company. Something which is clearly illegal but somehow acceptable in F1. The second paragraph you should be proud of. not quite sure why you wrote it though, because all you proved was the opposite of what i said. Many on here attacking McLaren seems too ill-informed or just plain ignorant a point you just clearly proved.

58

can’t help wondering why BMW missed this trick.

They threw in the towel and let fiat, merc and renault sail on

59

Hi James,

Not that I doubt you, but why do you believe McLaren have less to spend than say Ferrari or Red Bull for that matter? I think McLaren can tap into a lot of additional funds if it ever needed to and it has probably still the best sponsorship revenue of any team.

I agree with you on Mercedes but with Red Bull there are not unlimited funds I don’t think. Mr Maschnitzel can’t (but actually probably won’t) spend say double what he does now (and pick up the tab for Torro rosso too!). He is a business man and if you know that Red Bull has a turnover of some £3bn it is actually not that much and is he really prepared to pay more than 10% on F1 marketing alone?? No way I would say based on that.

I think in fact that Red Bull will try and get out on a high and sell at some point soon and move on to something new once they have racked up a couple more tittles. Maybe sell back to Renault some Qatari prince?

Ferrari it appears to me are in a difficult spot. I think their preference deal on TV money is going to be eroded somewhat with the next Concorde agreement and its parent company is in deep trouble. So I can’t see them easily fork out an additional $100m per year or so in an arms race, but hard to say perhaps with unclear Angelli & Arab structures behind Ferrari/Fiat.

Like I say, Mercedes are as it stands probably financially in the best place with its parent company turning over some £90bn a year!

So in summary, if there is an arms race it will be between Mercedes and yet unknown other party (read Qatar) by my calculations. Having said that don’t Qatari own a bit of Merc too! Darn its a forgone conclusion…

Jeroen

P.S. any bets on Shumi hanging round for that to sort out his performance issues?

60

Ferrari run independently of FIAT. FIAT owns a majority stake but that is it. FIAT last financial results also show that their revenue, operating income and profit was up. Ferrari have a lot of income especially from Philip Morris.

61

I remember an article a few years back regarding sponsorship and revenues of the teams.

Ferrari had an annual sponsorship income of $300,000,000 and no available space on their cars, their merchandise sales dominated the F1 market, IIRC about 80% of all income against the other teams.

Even today, Philip Morris has signed into Ferrari for a number of years, and yet their name or product isn’t in evidence on the cars at all.

I doubt Ferrari will struggle. Ultimately, Ferrari is recognised as a racing brand, the board would always back the team. Mercedes and other manufacturers have to convince their boards of the need to compete in F1. Look at Honda, Toyota and BMW recently.

Fiat currently is in resurgence, they have taken on Chrysler/ Jeep and Dodge and looking to expand.

62

Its interesting how some years the off season begans to ramp up to be more interesting than the racing was.

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