What's really wrong with F1 (contains sweary bits for the touchy feely)

Rather nauseating what's going on at the FIA, FOM and so on ...

Not a very good advert for GP, I would have thought.

 

If that's the case, they are doing great damage to F1 by pricing it out of Europe's circuits, where most of its fan base and sponsors are. I know that the center of gravity of the world economy is moving Eastwards, but I don't think that F1 would survive by operating only in the Middle and the Far East.

A bit like killing the goose that lays golden eggs maybe? Surely short-sighted.

 

There is one thing that needs to be entered into the equation...GOVERNMENT. CVC have learned one simple fact that lots of upscale crooks already know, if you can shift the costs to a willing government, then the sky is the limit. It is like everything from healthcare to mortgages to college tuition. Whenever government dips its outsized toe in the pool, the pool overflows.

Virtually every (and I'm virtually because there may be one I don't know about) F1 race is run on a track where there is a government subsidy that offsets, and thereby inflates, the cost paid to CVC. COTA gets about $25mm from the State of Texas and still loses money.

CVC have figured out that there are lots of governments that will eagerly pay the freight to put on an F1 race. The motivation for government contribution runs from some calculation that it will generate indirect tax revenues via increased commerce (see COTA), to stroking the ego of the local potentate or ruling family. When government participation goes away so does the GP. Fortunately for CVC, the "bigger fool" theory is alive and well and looking for a place to spend its money. As more and more governments find it difficult to justify these expenditures, I would expect to see more and more races move from the mature democracies to emerging and autocratic countries.

 

Welcome to the dystopian F1 future. What to do with all those racetracks, constructors, engine builders and tire suppliers that have been left by the wayside while Bernie pimps F1 out to strangers-to-motorsports? Whats to stop a tobacco company from using untapped ad dollars to become a legit constructor/manufacturer? What we need here is a rebellion! We can call the new series F!Tony George.

 

The minute the controlling interest in F1 was sold to an investment firm with little interest in racing the chance the sport had a bright future was highly questionable.

The profit they extract is NEVER enough to keep them fat and happy and they rarely make decisions that make the sport better. Their focus is purely squeezing more money out.

Also, Bernie's deal that he gave to teams signing up until 2020 distorted the sport beyond repair until it expires.

 

This season's sad start reminded me of good old TG, too.

 

I believe the British GP is one exception, and I suspect other European GPs will be the same because of EU rules on state funding.

 

The importance of racing has been replaced with advertising.

 

Well, that would explain why Europe's largest economy cannot make a go of a GP at either of its approved circuits.

But it conflicts with what Dr. Harstein said about Belgian tax payers pissing and moaning about having to pick up the losses for Spa.

 

FOM - and CVC and the teams are addicted to money - and live in a totally un realistic world that eventually will come crashing down. once Ferrari HAS to make a profit - you will see a completely different perspective on F-1 and how money is distributed and then the frenzy for money will be on and it will speed up the decline big time!

 

Ferrari has been making massive profits year after year.

 

Nail on the head sir!

 

I just don't trust that man F1 doc for my Formula views and news. He hasn't been the same since he was fired. He has had a thorn in his side about F1 and everyone and everything to do with it ever since and his solutions are always in defense of race fans - when I don't remember asking for any.

It is a tremendously expensive sport on all sides. Sure some are getting very rich, but that is the way of the world in every successful sport and business concern. There have been people in the media saying that our sport was going to die out for the last 20 years - so far that hasn't happened.

Tracks know what they are signing up for. The good doctor is wrong that tickets and hotdogs are the only way they make money. They make money on homegrown souvenirs, on hotel and entertainment packages on the race weekend, on transportation packages, on tours and deals with local government and businesses related to race fan spending, from vendors and local sponsors, etc. F1, on the other hand, has a very large expense being a global sport. The people running it are business men and they are going to want the riches like any business, but their expenses are huge. So a lot of money has to be made.

There are issues that need to be addressed and perhaps money can be distributed more effectively, but I have to take the doctor's words, and others in the media that talk about the F1 issues from the outside looking in, with a big grain of salt.

 

As with all government spending on frivolities the elected officials get the prestige, parties and sky box and the taxpayer gets the bill.

 

Never a more correct statement ever made on this site. They have completely forgotten what F1 is about.
Pete

 

The tracks do not make money, their local governments cough up believing that it helps their cities image ... personally I think they should tell Bernie to F off. He has bleed the sport dry and should have been putting money back into the sport for years.
Pete

 

F1 is in the hands of people who are interested in their bottom lines. The thinking is short term and greedy.
This is why successful sports are run by independent authorities whose remit is the health of the sport.
The rot set in when the FIA sold the running of the sport and the TV revenue stream to Bernie. He's been great at making people money but poison to sport.
FOM is fiducially commited to its stake holders not to the sport. Once they've squeezed the last penny from F1 they'll move on without a care for the havoc they've created.

 

Careful friend. Truthful thinking is like walking on thin ice 'round here.

 

Doesn't matter much what we say or think. The current F1 business plan is taking the sport down the toilet. The problem is that its still making people money.
Greed got us into this mess and greed might get us out but only if they start thinking long term. How likely is that?