GPWizard F1 Forum
F1 News & Discussions => F1 Teams => Topic started by: Scott on November 19, 2017, 01:52:59 PM
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Sure, do the math anyway you like, but I think a departure would ultimately cost them, not save them a thing.
If they closed down their F1 factory in Marenella, they would be on the hook for the debt on the building, employee contract payouts, along with any tax incentives they received to build and run it there. Then there are sponsorship contracts, some of which surely go beyond the 2020 season. Street car sales would dip - hard to correlate, but without a doubt there would be some effect.
I'm not one to try to convince them to stay, I just don't like the spin on this story. I hope they leave, and make it as loud as they like.
https://www.pitpass.com/60728/Withdrawal-from-F1-would-boost-Ferrari-by-100m
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I think the entire F1 establishment would be happy if Ferrari slashed their budget by 100M.
If they can't win on a level playing field, maybe their product really is crap.
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I think Ferrari needs F1 every bit as much as F1 needs them. They're identity is based on their racing. They are the ultimate example of "Win on Sunday, Sell on Monday."
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I think Ferrari needs F1 every bit as much as F1 needs them. They're identity is based on their racing. They are the ultimate example of "Win on Sunday, Sell on Monday."
Certainly F1 was the core business of Ferrari for many years... but plenty of businesses drift from their core business. I think the Ferrari name is pretty much locked in as as the top 'luxury sports car' brand in the world, and their competitors aren't in F1, so I don't think winning or losing in F1 will make much difference.
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I would call Bugatti the top luxury sports car brand in the world as far as pure luxury and speed. But aside from a few others who make very small production runs, only Lamborghini springs to mind as a competitor on the same calibre as Mclaren is to Ferrari.
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Sure it would cost Ferrari some one off costs to leave F1 but any savings would exist in perpetuity so the 100m a year is probably true. Years ago Ferrari ran the test track at Maranello purely for F1 but they seem to have repurposed that within the customer car scheme. Similarly a lot of the F1 factory could be turned into a performance car builder or a base for a World sports car LMP 1 team.
My feeling is this is part of Ferrari attempting to head off removal of their special status, however others like Toyota & BMW have bit the bullet when the economics were wrong.
I think F1 would be much the poorer without Ferrari.
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Of course Ferrari are trying to head off their special status removal, but don't forget F1 would be richer without that special status. If I was in charge at Liberty, I would hand Ferrari a new contract when the current one expires with no special status, same goes for the entire grid. Recalculate the revenue and WCC payout with the new media and if its a bigger pot, spread it more evenly.
Earn your money...there should be no tenure in F1.
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Scott that is easy to say and difficult to achieve as all the top teams, Red Bull & McLaren included get enhanced payments for one reason or another. I rather think that more than Ferrari might call it a day if the extra payment system stops.
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Of course Ferrari are trying to head off their special status removal, but don't forget F1 would be richer without that special status. If I was in charge at Liberty, I would hand Ferrari a new contract when the current one expires with no special status, same goes for the entire grid. Recalculate the revenue and WCC payout with the new media and if its a bigger pot, spread it more evenly.
Earn your money...there should be no tenure in F1.
I'd like to see prize money removed from the sport entirely, each team gets an equal share of the pot, and then makes their own sponsorship deals. Things will never get interesting if Sauber's main purpose is to provide a full grid so that Ferrari can get paid.
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Looks like even the Fiat boss isn't convinced, since he just allowed Alfa Romeo to title-sponsor another F1 team :DD
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Looks like even the Fiat boss isn't convinced, since he just allowed Alfa Romeo to title-sponsor another F1 team :DD
A quick online search doesn't provide a lot of solid detail, but FCA sold Ferrari in 2016. Ferrari is now owned by a Dutch company called Ferrari NV that still operates in Maranello.
So corporately, Fiat has no ties to Ferrari, though many FCA executives would own Ferrari shares, in which case sponsoring Ferrari might actually constitute some sort of anit-trust in European law (surely directing Fiat's corporate money into what is a personal investment is wrong?)
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Looks like even the Fiat boss isn't convinced, since he just allowed Alfa Romeo to title-sponsor another F1 team :DD
A quick online search doesn't provide a lot of solid detail, but FCA sold Ferrari in 2016. Ferrari is now owned by a Dutch company called Ferrari NV that still operates in Maranello.
So corporately, Fiat has no ties to Ferrari, though many FCA executives would own Ferrari shares, in which case sponsoring Ferrari might actually constitute some sort of anit-trust in European law (surely directing Fiat's corporate money into what is a personal investment is wrong?)
If an individual or syndicated investor has more than 5% in a company, a wrongful trading claim is possible, though there are measures that can be taken to avoid this. I cannot tell from here if that applies.
If Fiat has no corporate ties to Ferrari, it makes sense - though I must wonder how Ferrari NV would save £100 million in net funds from leaving F1. In the short-term it would be a saving, but the reputation mining would at some point catch up with them.