Financial troubles for A1?

[Raymondo]

whatever....... if you were at Brands Hatch you couldnt fail to have noticed that it was packed........ packed solid. It was a fantastic event as have been all of the other races that i have attended. Roll on Season 2!!!

[Stephen Green]

I think it's fair to say that Brands was packed for several reasons. First of all MSV promoted the meeting very heavily and secondly, it was the first A1GP race ever and therefore drew more than other events may have done.

[simon drabble]

Originally Posted by Kiwi3

So what, this is nothing new! Lots of very large profitable companies are slow at paying invoices.

its all to do with counterparty risk - if your c/p has a strong stand alone financial standing then you can take an informed credit stance on the lateness of the payments, however if the financials are less clear than you are forced to take a more defensive stance. Vague spurious connections to Dubai is possibly a little to tenious a counterparty risk for some suppliers to provide extended credit.
I would have thought a more intelligent stance would be to show rapid payment in the early stages in the absence of a strong balance sheet and that way whilst reputation is being established they are fewer critics...
just a thought as I am an investment banker rather than in the industry!

[Stephen Green]

Well said Simon (from one banker to another)

[Mystery]

Originally Posted by simon drabble

its all to do with counterparty risk - if your c/p has a strong stand alone financial standing then you can take an informed credit stance on the lateness of the payments, however if the financials are less clear than you are forced to take a more defensive stance. Vague spurious connections to Dubai is possibly a little to tenious a counterparty risk for some suppliers to provide extended credit.
I would have thought a more intelligent stance would be to show rapid payment in the early stages in the absence of a strong balance sheet and that way whilst reputation is being established they are fewer critics...
just a thought as I am an investment banker rather than in the industry!

Agreed wholly, although I would point out that in the Middle East they do seem to prefer the "don't you know how I am" approach to being asked about financial standing rather than actually stumping up evidence or indeed cash. So your approach is obviously the right one to follow, I can honestly say I'm not suprised they did it this way.

[simon drabble]

I think the "dont you know who I am" approach would cut more ice if he was a brother not a cousin. Also from my experience they are sufficiently savvy these days to realize that the world outside the ME doesn't operate on local ways. Reciprocity is thier big thing in which case they could start with "you give me tyres and I will recipicate by paying for them!"

[Peter Mallett]

Originally Posted by Stephen Green

Well said Simon (from one banker to another)

Bankers!

[simon drabble]

it is unfortunate rhyming slang I grant you!

[Peter Mallett]

I'll give you that.