Jordan (again) - Update.

[Super Tourer]

The latest story floating around Jordan is that the people behind Midland F1 are casting their eye over the team.

There have been several stories circulating recently that EJ is allegedly on the ropes as far as 2005 is concerned. The sponsorship cupboard is allegedly bare, and EJ is realistically faced with the options of selling the team, closing it, or funding it out of his own pocket.

It's a tantalisingly difficult time for EJ as whatever happens over the next few months regarding BE and the GPWC, there will be more money on the table for teams in the future. Under BE's recent proposal perhaps up to twice as much, this makes me wonder if in the end EJ will 'find a way' to struggle on himself on the basis of more jam tomorrow and an increased value in the team?

As for other buyers the negotiations with Arden have been going on as long as anyone can remember, it's also alleged that EJ may not be taking the bid as seriously as he might.

The latest story makes much more sense. It was very strange for Midland not to even look at Jordan, considering a complete start up instead. For the cost of the $48M bond, I would imagine they could easily buy Jordan and have a ready made team and facilities at their disposal. Their previous need for a 'different identity' doesn't make much sense for a privateer entry, you can imagine VW or whoever wanting a clean sheet and no reference to the past - but then they would undoutedly have more resources at their disposal.

On a seperate note, a member of the Yeltsin family has joined Midland F1 to help with commercial proposals.

http://www.grandprix.com/ns/ns14002.html

[Kicking-back]

I think grandprix.com have lifted this from Autosport magazine.

In any case, as you suggest, I'm pretty sure Jordan will find a way to continue in his own right.

[ParkLife]

For some reason people seem to be resigned to the fact that Jordan cannot continue under their own power and need to be completely bought out in order for them to have any sort of future.

Don't get me wrong, Jordan having to shut up shop is the last thing I'd want but I also feel very strongly about losing the Jordan brand from F1. When the FIA and the fans talk about new teams entering and reinvigorating F1 I want them to be in addition to the existing teams! I feel very strongly about Jordan and simply do not want them to be lost from the future of F1.

If the cost cutting measures actually go through Jordan are probably the team most likely to benefit from it. Minardi will likely always be Minardi and be towards the back, Sauber are and probably always will be truly mid-field. You get the impression however with Jordan that they can truly offer some variety. They may be towards the front one year, and towards the back another. Either way it does increase the interest of the grid.

I simply hate to think of a new team entering F1 at the expense of another. With a bit of luck Jordan's fortunes can begin to change a little next year, they have a decent engine, and can have a good crack at a neat chassis, perhaps they can move on a little and try to make some serious headway in bringing costs in F1 down and giving privateers, both current and future, at least a fighting chance and the ability to simply exist.

[raul_iulian]

i will be SAD to see EJ out !

[RWC]

As ST says- it sounds alot like EJ is just trying to survive to get the pot at the end of the rainbow.
Actually it's been kind of like this for several years.Back in '98 (i think) he turned down an offer from honda for $80mil for the team.Later i think he turned down another offer for the team because it would mean him stepping down (not sure on that one-the memory is hazy)
Then 9.1.1 hits,the world economy stumbles and suddenly all the debt he built up during their attempt at leaping up the grid (99/00?) comes back to haunt him
No one wants to buy any team at that time so since then he's done nothing but try to survive until he can cash out....
Telling his creditors that things will improve and that they'll make less of a loss (and very likely none) if they wait, probably helps enormously

[JohnSSC]

"It was a dark and stormy night. A shot rang out! A woman screamed! Word 'round Jordan is they are for sale!"

What would the Holidays - or any day be - without rumor of Jordan being sold?

Today, it is Midland F1 with an actual Yeltsin Family Member Involved! Tomorrow or even this afternoon Pope John Paul resigns the Papacy and anounces that he is forming a consortium to purchase Jordan with himself as Team Principal, George Bush's neighbor's cousin's hairdresser's brother-in-law as Part-Time PR person and with sponsorship money coming from a very rich, old family who can trace their lineage back to Atlantis.

In other news Arden has purchased the country of Dubai in a deal brokered by Eddie Jordan, who is rumored now to become the next Sheik Yerbooti.

Aside from myself, is there anyone who has NOT been rumored to be purchasing Jordan F1?. If EJ were really smart he would have the current Jordan chassis declared a Weapon of Mass Destruction (Heidfeld would testify in favor of that), President Junior could blow it up and fund a new, workable chassis so that the "Peace and Democracy loving people of Jordan can experience a successful polar moment of inertia." "Pssst, Mr President? Could you be talking about a different Jordan...?"

[Gt_R]

It's interesting to plot the journey of Jordan. It wasn't too long ago, just 5 seasons back, where Jordan showed itself to be an almost contender.

Jordan back then is a team i really like. A bright yellow car, a energetic and fun young team, with a decent (but not wasteful) budget and an effective team. It's amazing how Jordan fails to capitalise on that and instead, the team has now struggled to even make the car stick on the road.

Once again, money is a huge factor, and cost has definitely ballooned in recent years to incredible sums. But still, it's sad that 1999 has been a one-off, and Eddie never has the luck (some say ability) to bring his team one step further into the top elites.

Hence, besides pure cost cutting, i would actually suggest
a) a seperate privateer championship (non-manufacturer backed), to recognise the efforts of private teams (let's admit it, manufacturer teams are always getting more cash). This way, it gives teams like Sauber or Jordan some bragging rights which may help gain sponsorship, while attracting new private entrants.
b) prevent big teams from simply poaching good talented young staffs after small teams groom them. Sure, a talent should always move upwards in search of better career...but if a small team give chance and nurture a young engineer graduate, and its starting to pay of for the team in results, small teams should be given some insurance that good people don't just leave overnight and leave the team stranded.

[Kicking-back]

To clarify earlier suggestions about debt and creditors - Jordan has survived on a tight budget - the team is debt free.

[GTRMagic]

I doubt a manufacturer will buy Jordan with the Atoyot engines sitting in the tail of their car.... well in reality Toyota may not want to proceed if say VW were to buy the team....

What will happen when Bitten and Hisses isnt allowed to sponsor the cars any more? Will they return to the old days, when the busiest bloke on the Jordan squad was the one making the stickers.... with small spaces from brands from countries we have never heard of...

[JohnMiller]

Originally Posted by Super Tourer

For the cost of the $48M bond, I would imagine they could easily buy Jordan and have a ready made team and facilities at their disposal.

Like many people you appear to be confusing the lodging of a refundable deposit (with interest) with a cost here.

[GTRMagic]

Originally Posted by JohnMiller

Like many people you appear to be confusing the lodging of a refundable deposit (with interest) with a cost here.

Perhaps, but the newbie teams dont get any appearance fees/prize money for the first 3 seasons....

... so an existing team does have some value!

[Super Tourer]

Originally Posted by JohnMiller

Like many people you appear to be confusing the lodging of a refundable deposit (with interest) with a cost here.

I'm not !

The point I was making is that for less than the equivalent cost of funding the bond ( which is still cash you have to raise), you could buy Jordan, immediately qualify for FOM benefits and have a ready made infrastructure.

Sure, the bond is refundable, but starting from scratch you still have to raise the bond and buy premises, recruit staff, purchase equipment, etc - in other words $48M bond plus heavy start up costs before you turn a wheel.

It is not a 'cost' but it is still money that has to be found, when an exisiting team can be bought for less, surely it is more prudent?

[RWC]

Originally Posted by Kicking-back

To clarify earlier suggestions about debt and creditors - Jordan has survived on a tight budget - the team is debt free.

Wow this is the first i've heard that suggested.
Not that i'm arguing,let's face it,the f1 journalist profession is not exactly known for it's absolute truthfullness....
But i have heard many times that jordan has debts (especially regarding the huge amount spent around '99) -can you give a link or info on this?

[JohnMiller]

OK on the bond - I understand where you are coming from now - and the FOM money etc. etc.

Jordan's debts are surely effectively the 49% (?) of the company owned (now) by Merrion?

[go-jordan]

Sorry to disapoint some of you lot but jordan have got NO debt. In fact in 2003 the team made half a million in profit. Figures for 2004 have not been relised but considering jordan had more dosh in 2004 i doubt they made a loss. Also jordan developed a jordan b spec car in 2004 which was said to be significantly better but could not afford to buyild the car. They will develop the ej15 from the b spec car.

Another point id like to make!

Why would jordan pull out now. I mean he has fought like a dog for changes in terms of cost cutting and an increase in money for the teams from BE. If the teams get that increase jordan will have 60 odd million to play with before sponsership comes into play. The amount of money the team ran with in 2003 and 2004.

Why would he sell up now for others to reap the benifits he worked so hard for to implement. Now investment is another matter. I do expect the merrion capital to be sold. But Ej will hold controlling interest.

[Testure]

Indeed, I've never heard it reported that the company itself has any debt at all. You could say that the owners shares in the business represent debt, but that's stretching things. Google for "jordan f1 debt" and see if anything interesting comes up.

[Super Tourer]

The story continues

Eddie Jordan has ended his talks with Arden International over the possible sale of Jordan Grand Prix. It appears that Jordan believes that there is a better bid from an unknown Chinese buyer. This might be the oil company Sinopec, which seems to want to get more coverage out of F1. The Midland F1 organisation did take a look at the team but appears to have only been interested in some of the assets

It seems others are thinking the same way many of us on the F1 forum are...

There are some who think that Jordan may be holding on in the belief that there might be a new deal between the teams and F1 commercial boss Bernie Ecclestone which will provide the team with a lump sum of money which would enable him to keep the team going under his control.

http://www.grandprix.com/ns/ns14014.html

[Gabrio]

I just heard from a pretty credible source that the deal was closed a few days ago between Midland and EJ and that it will be announced in January. EJ should stay until the end of 2005.

[JohnSSC]

Gabrio, no offense, but many of the other possibilities expounded on here "had it on good authority!"

Maybe EJ will join a Monastery and sell Jordan F1 to a collective of rogue Benedictine nuns, who will in turn raffle it off during next Saturday's Bingo at Mount Alvernia Academy...

[Gabrio]

Originally Posted by JohnSSC

Gabrio, no offense, but many of the other possibilities expounded on here "had it on good authority!"

Maybe EJ will join a Monastery and sell Jordan F1 to a collective of rogue Benedictine nuns, who will in turn raffle it off during next Saturday's Bingo at Mount Alvernia Academy...

No offense taken at all. As I wrote, it is a rumor to me and I thought I would share it, although as of today I have no reason to doubt the people who told me that.

[ralf fan]

Originally Posted by go-jordan

Sorry to disapoint some of you lot but jordan have got NO debt. In fact in 2003 the team made half a million in profit. Figures for 2004 have not been relised but considering jordan had more dosh in 2004 i doubt they made a loss.

Yes Jordon are not in debt.. but they do not have the money to invest in the car... hence they can no more challenge the midfield teams.
If EJ gets an offer for the team im sure he'll sell.. because the buyers can firstly invest in the car and make it faster. Also im sure the last thing EJ wants after fighting for 15 years is the team to close down due to lack of sponsors.

[Super Tourer]

*bump*

The on/off sale continues, latest comment is in line with some of the posts in the thread, that EJ will hang on to see what money is forthcoming from BE/GPWC, which will dramatically increase the value and viability of the team.

The word on the street at Silverstone is that Jordan Grand Prix is not for sale after the failure of negotiations between Eddie Jordan and Christian Horner of the Arden International Formula 3000 team. There has been vague talk of deals with Midland F1 and with a mysterious Chinese backer but the latest suggestion is that Jordan is going to go it alone and wait until the value of the F1 teams increase. Both Bernie Ecclestone and the GPWC are promising big payments for Formula 1 teams which join them

Also look like Glock will continue with increased backing from DHL, with Doornbos a shoe in for the 2nd seat.

http://www.grandprix.com/ns/ns14052.html