Series financial security

[Kiwi3]

It turns out there were financial issues getting the cars to NZ. You have to wonder why the freight from Malaysia was "horendous", as surely freight logistics should be worked out well in advance and not planned round to round.

http://www.stuff.co.nz/stuff/4828803a1823.html

Hopefully these issues will soon be resolved however, with the news that potential investors should be announced soon. I guess the idea that there are only a few weeks to get through might explain why Giltrap and others might have pitched in, better to fork out a bit more now to keep the current serious going than lose everything...

http://www.nzherald.co.nz/sport/news...ectid=10553472

[Peter235]

This is an interesting one as A1GP has built a good reputation over its first four years for competitive racing and, almost more important, allowing a number of drivers an opportunity they realistically couldn't get anywhere else in the rest of the sport.

I've watched it from the first beginnings with some occasional insights behind the scenes and, however I view it, I find it difficult to see how it can ever become really profitable and justify the huge amounts of money invested into the Series and its teams, though I can image the team principles finding it a good way of focussing their global clients attention wherever it goes.

Particularly now it must be extremely difficult to raise proper sponsorship for the teams from anything other than global businesses without the level of TV coverage and general hype built up over decades by F1, also apparently desperately cost cutting to stay in business now.

A1 also uncovers the enormous costs involved in shipping a whole grid and all the back up equipment round the world which generally keeps racing on this logistical scale down to a very few major Championships, let alone the personnel. On the other hand that's also one of its significant advantages compared to Series on just one continent as its format does have a lot of merit in pitting country against country and it's been great to see some less expected countries getting good results from time to time.

I really hope this does succeed - after all, who knows - if there's a sudden exit of motor manufacturers out of F1, where will that find replacement money and engines now in keeping with the long term style of being the best and most innovative category in the World? Maybe A1GP are in the right place to take up some slack if this ever occurs.

I see that Williams have already admitted that, without the drastic cost cuts imposed by the FIA, they could have been struggling. (yet contrast that with the huge added costs of trying to develop KERS!) I do hope not as Frank and his Team have been an inspiration to countless others in the way they have come back from disasters and won again and again throughout their history.

I will await the outcome of AlGP's search for yet more fresh money with great interest and sincerely hope that, this time, this and their business plan can come together for them to reach economic stability and be with us for a long time to come.

[Thundersports]

I hope it carries on as well I have attended all three races at Brands which were very enjoyable however I have heard through the grapevine that if no new investment is found the series is sadly on borrowed time.

[strider]

I hope the Series continues, too, but it is definitely in need of renewed financial backing. Basically it's a good concept and a good package, but the costs will have increased dramatically with Ferrari's involvement.

The trouble is that this is the worst possible time in recent years for such a thing to happen, so I hope Colin Giltrap's optimism is justified and good on him and others for underwriting Taupo. It may not have been the greatest meeting, but it was vital that it should take place.

[nic.v814]

I also hope the series will continue but i think they were already a long way in the red before the current financial crisis hit so they must be really struggling now

[tausif]

A1GP have struggled this far, but they have not thrown in the towel yet. Gutsy.

Many teams lack sponsorship and are struggling on their own. There is no news of Team Pakistan so far this season. Any updates on Team Pk?

[Tyrrell]

Pakistan will be back for Kyalami

[jackschmidt]

Originally Posted by Tyrrell

Pakistan will be back for Kyalami

Source?

[rychard]

So is the freight and all that goes with it paid for the cars to get to Kyalami or was it only paid to get them to NZ?

[TR7V8]

I don't think they are maximising the revenue at the track. They only team merchandise in the official tent were caps, T-shirts & polo shirts & some lines were out of stock by Sunday at Taupo. There are plenty of other things that should be for sale like panama hats, sweatshirts, fleecies, key rings etc. What about mascots? The only replica car I saw was the NZ car (although if you bashed all the wings off & made it so the wheels didn't go around it might pass for the Monaco car ).

Non-NZ hats were going for $10! How can they be making money at that price? Also, wouldn't you expect there to be gear with the Ferrari logo that they could charge premium $ for?

[Kiwi3]

It's a good question...when the Ferrari announcement was originally made over a year ago it also covered merchandise. I was hoping to see A1GP merchandise appear in Ferrari shops and dealerships, but nothing.

Perhaps it is a matter of priorities, A1GP has a number of challenges to get through already and perhaps there is not the large fan base yet that would make merchandise really profitable.

By the way excellent interview with Pete da Silva on the autosport website today. I like his balanced take on things and honesty about some regrets (Mugello and Chengdu). You'd never hear that from Tony T...but I have a lot of respect for da Silva after reading this.

[kerrmanningjarv]

Pakistan's official website has a news article saying they plan to be back at Kyalami.

[kerrmanningjarv]

And yes, I just read PdS's interview - he sounds really confident which, in turn, makes me feel confident too over the future.

All A1 really needs is investment, and it sounds like that should be forthcoming - if they get that, I think more races and teams will follow, promotion and PR should improve and the series will be very good indeed as the concept is really good and the race weekends are always excellent.

Call me over-optimistic but that's what I'm hoping for.

[TR7V8]

New series sponsor to be announced in the next couple of weeks.

http://www.radiosport.co.nz/SportsNe...aspx?id=151560

http://www.newstalkzb.co.nz/audio2/27050440.wma

[diabloA1]

Still, they should always strive at improving management and operations. I hope the fresh injection isn't cause for complacency. It is said that there are a lot of areas that can be improved on in A1GPs management.

[RichardRenes]

Originally Posted by TR7V8

I don't think they are maximising the revenue at the track. They only team merchandise in the official tent were caps, T-shirts & polo shirts & some lines were out of stock by Sunday at Taupo. There are plenty of other things that should be for sale like panama hats, sweatshirts, fleecies, key rings etc. What about mascots? The only replica car I saw was the NZ car (although if you bashed all the wings off & made it so the wheels didn't go around it might pass for the Monaco car ).

Non-NZ hats were going for $10! How can they be making money at that price? Also, wouldn't you expect there to be gear with the Ferrari logo that they could charge premium $ for?

Ok, so there actually is some more merchandise now. Only things available at Zandvoort were Team Netherlands 2008-2009 teamwear and the A1-TW steel cap.

No sight of the amalgam models for instance, and Scalextric was not to be seen either.

[TR7V8]

TW Steel had a marquee with a TV & comfy chairs but no merchandise that I could see. The did supply some girls though. This year's A1GP girls were very nicer than last year but the TW Steel girls were sexier!

[Armco Bender]

Poor girl in the Dutch car seems to deployed the airbags..

[LucaBadoer]

They were talking A1 on NewstalkZB the other day - they said that Giltrap put a few million out of his own pocket to enable them to race in Taupo. If it wasn't for Colin, that race weekend wouldn't have gone ahead.

[Mak]

Wonder what equity was used by A1GP for Colins donation? Colin may have a grid of new cars to run in a newly formed NZ series in the near future. Have cars managed to make it onto a plane bound for South Africa yet?

[Kiwi3]

My understanding from news reports on the subject is that a couple of other team owners also pitched in.

Hopefully we'll get an announcement about the speculated new investor/sponsor before South Africa, but we've been disappointed before...

[TR7V8]

There was supposed to be a new sponsor/investor announced 1 week after Taupo. What has happened?

[Mak]

embarking on such an expensive up-grade and Ferrari engine contract/naming rights at a time when they had no money and had made huge losses in previous seasons. Last season looked like they were just getting things undercontrol and 2008/09 should have been a stabilising period. At the anouncement many people questioned the viability of this, however it was finacially guaranteed by TT. Also the cost of the deal struck with Ferrari at that point was keep fairly quiet. It is the lack of money which has caused all A1GP's problem. Late season start, late cars and teams, missing teams/cars, lack of calander dates and lack of media coverage.

[RichardRenes]

OK, well, if for the first time in history, Ferrari is willing to supply their knowledge to a series other than Le Mans/ F1, and you are NOT taking advantage of that.. that would be unwise.

Yes, perhaps they hoped/ calculated that being tied to Ferrari would bring them more, but that has not been the case. On the other hand, A1 is not doing things they may regret later either. The gambling industry for instance was willing to sponsor A1 big time... but should that happen, people will allways wonder.. especially when strange things start to happen as radio traffic or dodgy marshals.

[Mak]

just about Anyone can purchase naming rights and engines for a price, but you need to be able to afford it. The cost of the contract which Ferrari has with A1 and new cars has meant that they have not been able to run the series professionally. The Ferrari deal was a great marketing asset at the right price and if they had the money in the bank. Seems they had neither, over priced deal and no way to pay for it all.