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CylonRed
Premium,MVM
join:2000-07-06
Bloom County
reply to CylonRed

Re: F1 Silly Season officially begins...

The cash crisis in F1:
»uk.eurosport.yahoo.com/blogs/wil···688.html

quote:
The Marussia team’s decision to drop Timo Glock for commercial reasons this week highlighted the financial challenges some teams are currently facing – but there may be an answer to the potential cash crisis.

In 2010, F1 lured in three new teams – Lotus (now Caterham), Virgin (now Marussia) and Campos Meta (which became the now defunct HRT) – with a promise of price-capped racing that never happened. Costs have continued to spiral ever since.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain

Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1
said by CylonRed:

The cash crisis in F1:
»uk.eurosport.yahoo.com/blogs/wil···688.html

quote:
The Marussia team’s decision to drop Timo Glock for commercial reasons this week highlighted the financial challenges some teams are currently facing – but there may be an answer to the potential cash crisis.

In 2010, F1 lured in three new teams – Lotus (now Caterham), Virgin (now Marussia) and Campos Meta (which became the now defunct HRT) – with a promise of price-capped racing that never happened. Costs have continued to spiral ever since.

How does F1 Merchandising compare to that of NASCAR? NASCAR does not seem to have much in the way of press worthy huge money issues(though its cars compared to F1 are like comparing a P51D to an F22 raptor.) But I am guessing NASCAR has exploited its brand better in what it sells off the track.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports


bjf123
We Want... A Shrubbery
Premium
join:2000-02-11
Hamilton, OH
I think it's a question of degrees. NASCAR has money issues, but it doesn't cost anywhere near the same to develop and build a NASCAR car as it does to build one in F1. I heard a stat a year or two ago that what Ferrari spends to put one car on the grid is enough to build the entire 43 car NASCAR field. That seems a little extreme to me, but I think it's fair to say that the money needed to race in F1 dwarfs that of NASCAR.

I don't follow NASCAR that closely, but I think every car that starts a race gets some prize money each time. In F1, I think the teams only get prize money at the end of the year based on points scored. No points equals no money. Whoever wins Australia in two weeks won't collect a check from Bernie for doing so. When Jimmie Johnson won Daytona, I'm pretty sure both the team and the driver got a big payday.
--
Golf is a relatively simple game, played by reasonably intelligent people, stupidly.


CylonRed
Premium,MVM
join:2000-07-06
Bloom County
reply to Kearnstd
F1 has pretty good marketing but realize the biggest markets for F1 are in Europe. The infield of a F1 race does have a lot of trailers for merch but there are far less teams so it does not look as impressive. The trailers they use ARE impressive - most you can walk thru and it usually shows some amount of team history. The merch side is not quite in your face as NASCAR or even NHRA.

I think F1 has race purses - closely guarded in the Concorde agreement though. The end all - be all are the manufacturers points at the end of the season. Those points determine how much each team gets at the end of the season.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain


ThirdShifter
Premium
join:2002-03-16
Bronx, NY
kudos:1
said by CylonRed:

I think F1 has race purses - closely guarded in the Concorde agreement though. The end all - be all are the manufacturers points at the end of the season. Those points determine how much each team gets at the end of the season.

There is no cash prize awarded to teams or drivers from winning races.

However, you right about how money is distributed in f1 from the (TV rights, venue rights & trademarks etc.) - Commercial rights.

Currently 60% of this goes back to the teams, based on 3 tiers. with ferrari getting 2.5% on top of whatever standing they place. Which is being renegotiated for the 2013 agreement

Much like the English premier league and to an extent like the champions league, where each team gets paid to show up. Also, egardless of position and team relegated or promoted gets special grants for the adjustment periods.

Here is a post from someone that might have the insider know to it.
»www.quora.com/Formula-1-1/Is-the···how-much