Analysis: F1 Thinks Big as Little Teams Suffer

On the face of it, Formula One need look no further than China to convince anybody of its enduring allure and financial vigour.

With $325 million spent on the Shanghai circuit that hosted last weekend's inaugural Chinese Grand Prix, watched by a 160,000 strong crowd, sponsors could be persuaded that the future is rosy.

Yet while the glamour sport is making big statements, breaking into new markets with lavish circuits in unfamiliar surroundings, the little guys are hurting like never before.

Ford's decision to pull out of Grand Prix racing at the end of the season, selling engine maker Cosworth and their Jaguar team, hung over a Shanghai race that should have been a celebration of Formula One's expansion.

On the very first day, the entire Jaguar team posed for a group photograph against the breathtaking backdrop of the main grandstand. At the back, mechanics held up a "For Sale" sign.

Three of the 10 teams could fold before the start of next season; Jaguar need to find a buyer by mid-November while struggling Jordan and Minardi, both supplied by Cosworth, need engines.

At the same time battles between Bernie Ecclestone, the shareholder banks, carmakers, governing body and teams who all want their say are being waged for control of the sport and its future revenues.

There may be plenty of money washing around when it comes to governments eager to put their countries in the limelight but the independent players are going to the wall for want of comparatively paltry amounts.

Briatore Blast

All the signs indicate major upheaval on the horizon, possibly the most troubled times in the history of the sport, even if some movers and shakers would prefer to look in the other direction.

Renault boss Flavio Briatore denounced what he saw as a "completely disgusting" news conference in Shanghai after continued questions about Ford's exit.

"I don't like a press conference like this, only talking about the problems for Formula One," he declared. "If somebody makes a $300 million or $400 million investment in Formula One, I think it is very positive for Formula One."

Yet even he had to relent. Why, he was asked, is it so difficult for the smaller teams to find money to survive when there is so much money in the sport and such a demand for races?

The answer, in a nutshell, was simple; Formula One costs too much and gives back too little. Jaguar's Tony Purnell went further into detail.

"There's still a buoyant market with the sponsors but you have got to able to tell your sponsor a good story about how you're going to do well," he said.

"The bit that becomes very difficult is if you have to purchase the engines, like Eddie does, because that means money that could go to the team goes to the engine and you want to be able to say to a prospective sponsor 'we can compete at the highest level'

"And for that you need a modern, up to date engine.

"So if the independent teams have a future it will be decided by engine supply, because that's the only bit of the economics that fails to add up. If you have to spend millions and millions of dollars on the engine when your team is struggling to do the things it needs to do, it's not a good story."

Tough Times

The future for the sport may remain bright, with talk of three-car manufacturer teams reviving memories of the pre-war days when the likes of Auto Union and Mercedes fielded four or five drivers.

But for the small teams, the coming weeks and months promise to be tougher than ever.

Much will depend on the sale of Cosworth and the ability of others, such as Toyota, to provide affordable engines to entrepreneurs like Eddie Jordan.