F1 teams play down 'credit crunch' fears

The annual revenue of F1 is estimated to be close to US$4 billion and there are fears the sport could become a casualty of the knock-on effects of a financial crisis, particularly with growing talk of a forthcoming economic recession in some parts of the world.

Super Aguri's collapse, earlier this season, is proof of the tough budgetary conditions faced by all F1 teams, however, despite sponsors being forced to be more careful with their money, some teams believe there is no justification for panic.

Frank Williams, who includes Chinese computer firm Lenovo as part of his team's major long-term sponsorship portfolio, says they are in a stronger financial position than when the first signs of the credit crunch surfaced around a year ago.

Williams also believes the crisis will not become a blanket worldwide issue, and while the 'west' is suffering a period of reduction in financial resources, developing nations such as China will continue to grow fast and see their economies flourish.

"It means sponsors are more cautious, but the world is bigger," he said. "Lots of people are still making money and need to sell products.

"We're doing very well, better even than a year ago."

Toyota Racing president John Howett added that although deals with traditional sponsors may be affected, there is investment to be found in other areas.

"If there is an economic recession it will be harder to get sponsors, but normally in the global situation you have new companies expanding," he said.

"Currently, energy and steel companies are making massive profits because of the expansion in China. One has to find people who wish to broaden their appeal and brand awareness, and actually have the available resources for sponsorship.

"Historically, there have always been sponsors, even through previous economic recessions. It will be tougher, but I don't believe F1 is in any worse a situation than any other sport."