Threats of boycott in Austin?

Excellent post

 

Is this model sustainable?
I suspect not. Losing the minnows isn't a threat to the sport there will always be new fools willing to take their place. The sinecure provided to the power players is corrosive.

 

Yes & yes. One could certainly argue that creaming 35% straight off the top is way too greedy (unless you're a CVC shareholder of course!), but they all knew that going in. Pick a "reasonable number? 20%? 10%? That would help, but not by a *huge* amount.

As I think we all agree (even Bernie it seems!), it's how the pie is divided that's broken.

As you say, it's all "top secret" stuff, but I don't think its that much. IIRC, Sylt (who's close to Bernie and probably has a better handle on this than anyone) said recently the "Ferrari bonus" was somewhere between $10-20MM per year. [May have been 20-30, but no where near a hundred.]

I could (of course ) be wrong, but I don't think that's true. Depending on finishing position they may get more than a newbie in the same spot as "history" is taken into account. Again, I believe the pie cut actually looks back 4-5 years, and if you're "there or thereabouts" consistently you do get a slightly higher cut.

But I don't think they get appearance fees per-se.

Sounds about right from what I've read. (A little hi & lo, but close) Further, the 6MM to Marussia was Bernie being "generous" - The agreement says without a point you don't get $ one....

But yeah, I very much agree here - The "big guys" simply don't need it as much as the small guys.

Trouble is, Toto and Eric (who's very much changed his tune since jumping ship!) are selfish (as are all TP's of course) & are only interested in their own interests. That they may kill the sport seems beyond their comprehension.

Hopefully, Bernie, who's *sole* care in the world is the success of F1, can slap a little sense into them - I don't see anyone else capable of even trying.... They'll ***** & moan, but love him or hate him, he's the only guy that's ever been able to stand up to these guys commercially.

Cheers,
Ian

 

The business is rotten. The financial inequities are built in. Sorry to wake Steve but it goes back to Max's big TV money give away coupled to a reverse welfare system where the rich get the dole.
Renegotiating the deal with Bernie seems unlikely unless the investors are convinced that they're killing the golden goose and that they will end up with the lion's share of nothing.
But if that can be done. Allocations to the teams should be based on performance. If that's not enough let them buy equity in the sport. They'll receive dividends from the profits and have an interest in the general health of the sport not just their own success. No more "appearence" money for the star teams.
The venues need adequate remuneration. Don't bleed them dry with fees that make tickets unaffordable. Don't deny them the opportunity to operate concessions.
Beyond that we need a strong FIA. The specters of Balestre and Mosley make many afraid but an independent, fair and powerful body is needed to set the rules. Rules that will produce cost stability at a level high enough to keep F1 the premier auto sport that it needs to be. Rules stable enough for teams to know what the tech standards will be for a meaningful period but flexible enough for technical improvement throughout the life of the formula.

It's not rocket science. Get the financial house in order, establish an independant authority beholding only to the good of the sport and stabilize the rules without atrophying performance.

 

As I said if performance based remuneration doesn't suit you let the teams buy into the business of F1 and reap the dividends. If they don't have the dosh to ante up let them move to a cheaper table.
That alone won't save F1. The rest of my suggested package is needed too.

 

BBC Sport - US Grand Prix: Lotus, Force India and Sauber talked out of boycott - This has moved beyond Bernie. Very interesting....

--A potential US Grand Prix boycott was averted by the intervention of the man who runs Formula 1, Eddie Jordan says.
Lotus, Sauber and Force India considered skipping the race in protest at what they see as an inequitable split in the sport's revenues and had organised a news conference on Sunday.
Jordan, BBC F1's chief analyst, says Donald MacKenzie, co-chairman of F1's largest shareholder, CVC Capital Partners, phoned Lotus boss Gerard Lopez and promised to address their concerns.-

 

More here without Eddie Jordan's input Lopez sees lifeline for struggling F1 teams | Reuters

 

If CVC is recognizing the systemic issues hurting F1 and is willing to accept a financial reorganization there may be hope.

 

Certainly for now appears so. Nice to some positive financial F1 news.