Escalating the vicious circle

[KC]

As Minardi struggles to exist next year, Mercedes and McLaren take steps to further improve their position at the top of grid. It is believed that McLaren had US$220 million dollars (app. 156 million British pounds) budgeted for 2000 and Mercedes is believed to have increased their interest by around 15%. Will Shell and Marlboro be interested in increasing Ferrari's budget as well or have they achieved their goal? How will the other teams be able to hope to compete as the top teams continue to escalate budgets? How soon till it all collapses from its own weight?

[Tris]

For one the computer soft ware that will totally negate the need for wind tunnel testing will be arriving in 2001 that will make it cheaper. Having said that teams like Ferrari and McLaren have the production lines running 24 hours a day 7 days a week! How are the small teams supposed to compete with this?

Other than that I guess the ban on tobacco advertising in 2006 will open up much more revenue for the entire grid as many sponsors have steered away from F1 because they did not want o be associated with F1 because of the tobacco advertising.

I have said it before... it is too difficult to start a new team into F1. Look at BAR and Jaguar. Essentially they were Stewart and Tyrrell but they both took huge steps backward after the takeovers.
It’s not just money it’s the entire synergy of the team. Imagine what it is like setting up a team from scratch. I think it says a lot that Toyota are setting up the team years in advance of the entry into the sport. When was the last time that a genuinely NEW team came into the sport? if you count Lola 1997 if you don’t count them I think it was Forti, who started off in 1995. They only lasted two years and don’t forget that Forti had been a dominant force in virtually every junior Formulae.

Many teams have come and gone but Minardi's impeding departure is highlighted by the lack of new teams entering the sport.

There has been a thread about a manufacturer buying Minardi out.... well I would not mind seeing Alfa back in Formula One.

[Tris]

For one the computer soft ware that will totally negate the need for wind tunnel testing will be arriving in 2001 that will make it cheaper. Having said that teams like Ferrari and McLaren have the production lines running 24 hours a day 7 days a week! How are the small teams supposed to compete with this?

Other than that I guess the ban on tobacco advertising in 2006 will open up much more revenue for the entire grid as many sponsors have steered away from F1 because they did not want o be associated with F1 because of the tobacco advertising.

I have said it before... it is too difficult to start a new team into F1. Look at BAR and Jaguar. Essentially they were Stewart and Tyrrell but they both took huge steps backward after the takeovers.
It’s not just money it’s the entire synergy of the team. Imagine what it is like setting up a team from scratch. I think it says a lot that Toyota are setting up the team years in advance of the entry into the sport. When was the last time that a genuinely NEW team came into the sport? if you count Lola 1997 if you don’t count them I think it was Forti, who started off in 1995. They only lasted two years and don’t forget that Forti had been a dominant force in virtually every junior Formulae.

Many teams have come and gone but Minardi's impeding departure is highlighted by the lack of new teams entering the sport.

There has been a thread about a manufacturer buying Minardi out.... well I would not mind seeing Alfa back in Formula One.

[LYM]

I think by 2003/4 we will see a big 5 scenario:
Ferrari
Mercedes
Honda
Toyota
BMW

The loss of tobacco sponsorship is one thing, but if Bernie can successfully penetrate into the US and Asia mkts there will be a long term, richer source of cash. But the TV money can actually widen the gap between the rich and poor teams, like what they did to the English football.

I dont think it's good to rely on so few manufacturers when barring Ferrari, involvements in the sport is not crucial to the rest of them. A Europe recession can easily led to the ultimate downfall of Formula One.

[Liz]

The same thing is happening in stick and ball sports - they are being priced out of the reach of the average Joe and Joanne, and as the stock market has gone down 500 points in the past two weeks and appears headed for major downturn - not to mention the continuing outrageous increases in the fuel sector which impacts everything from plastics up to motor racing, the corporate piggies will soon be unable to spend as lavishly on these frills as they currently do. When this happens, there will be nothing but television revenue to fall back on - which Bernie has painted himself into a corner on, with his BernieVision which is not available in the North American markets he wants to attract.

I would say that within ten years F1 will be in a shambles and so will most other sports, and some of us will think it pretty well serves them right.

[angst]

Formula 1 is becoming (has become?) a playground for the manufacturers, which is one reason traction control and other gizmos are coming back. As the next slump int he stock markets hit, and as some of them find that not everybody can win there will be those that pull out of the sport. As Liz says, in a few years time F1 will be a shambles. Maybe then CART, or something similar, can take over the reigns, and we'll have a real WDC again.