Mosley: Costs threaten F1's future

FIA president Max Mosley has warned that Formula One will be "in serious difficulty" if it does not take drastic cost-cutting measures by 2010

Mosley: Costs threaten F1's future

Yesterday the FIA reiterated that if the newly-formed Formula One Teams' Association did not come up with proposals to significantly reduce the sport's costs, the governing body would enforce its own measures, and Mosley believes as many as three present teams could be in jeopardy unless steps are rapidly taken.

"It has become apparent, long before the present economic difficulties, that Formula One was unsustainable," Mosley told the BBC.

"Very crudely expressed, one of the teams at the back of the grid cannot possibly hope to raise more than - including the money they get from Bernie (Ecclestone) - say 40 million Euro, let's say £30-35 million, which in the real world is a huge sum of money, but that's the most they can raise. To compete today, they need two or three times that and even then they're at the back of the grid.

"You can't run a business where the outgoings are two to three times the income. Not for very long. It depends at the moment on millionaires - or billionaires, we don't have millionaires any more - millionaires subsidising them, people like Vijay Mallya of Kingfisher or Dietrich Mateschitz of Red Bull. Without them, those teams wouldn't be there.

"We've already got two gaps, we're likely to lose two or three more of the independent teams. Formula One cannot continue like that, that's been obvious for some time.

"At the moment we've got 20 cars. If we lost two teams we'd have 16, three teams 14. It then would cease to be a credible grid.

"Some of the manufacturers may be in difficulty now as well, because if you look at their share prices, their profitability, their sales, the days when they could just toss out 100, 200, 300 million Euro a year, which is what Formula One costs those big companies, I think they're finished. I really think it's a serious situation.

"If we can't get this done for 2010, we would be in serious difficulty. I think we can survive through 2009, but if we don't get it done in 2010, we may be in serious problems."

Mosley believes the key is reduce expenditure on engines and gearboxes at the earliest opportunity.

"There are various things we can do, but the most obvious would be to reduce the cost of the drivetrain," he said.

"At present, if you can believe this, the engine and gearbox together, for an independent team, is upwards of 30 million Euro a year. That could be done for probably five per cent of that cost without the person in the grandstand noticing any difference at all.

"Even those big spenders, if they're given the opportunity to save 100 or 200 million Euro a year, they'll do so. And we've got various means of making sure they don't spend the money, but it does need some draconian changes."

shares
comments
Canadian GP dropped from 2009 calendar

Previous article

Canadian GP dropped from 2009 calendar

Next article

Mosley hails Hamilton's contribution to F1

Mosley hails Hamilton's contribution to F1
Load comments
The mid-season rule change that has left F1 teams scrambling Plus

The mid-season rule change that has left F1 teams scrambling

The technical directive issued by Formula 1 to reduce levels of automation in pitstops has given teams an unwelcome period of adjustment. Although safety was the primary goal, it has already had a significant impact on the title race and puts extra pressure on teams to deliver as the season reaches the business end

How the pandemic is continuing to bite F1 Plus

How the pandemic is continuing to bite F1

Uncertainty over the shape of the calendar doesn’t just vex the fans and the commercial rights holder. MARK GALLAGHER explains at how race promoters have been pushed to the financial brink

Hamilton at 100 wins: In his adversaries’ words Plus

Hamilton at 100 wins: In his adversaries’ words

Some 18 drivers have finished runner-up to Lewis Hamilton on his way to 100 wins. Three of those recall their battles with Formula 1’s centurion and give their personal insights into the seven-time world champion on his rise to unchartered territory

Formula 1
Sep 27, 2021
Russian Grand Prix Driver Ratings Plus

Russian Grand Prix Driver Ratings

The 2021 Russian GP was decided by late-arriving rain that allowed some to climb and caused others to plummet. But the events which played out beforehand are equally significant when considering the all-important driver ratings

Formula 1
Sep 27, 2021
How Mercedes made the “blind faith” call that won Hamilton his 100 milestone at Sochi Plus

How Mercedes made the “blind faith” call that won Hamilton his 100 milestone at Sochi

Until rain turned the Russian Grand Prix on its head in the closing stages, Lando Norris was set to convert his first Formula 1 pole position into a maiden win. But having recovered well from being shuffled back at the start, Hamilton and his Mercedes team called the changing conditions spot-on for a landmark 100th F1 victory

Formula 1
Sep 27, 2021
Why momentum is again behind Australia’s aces Plus

Why momentum is again behind Australia’s aces

At the Italian Grand Prix Daniel Ricciardo turned around a troubled F1 season and, in F2, Oscar Piastri demonstrated once again that he is a potential star of the future. BEN EDWARDS weighs up the prospects of F1 having two Australian stars

Formula 1
Sep 26, 2021
The tough balancing act facing Schumacher’s Netflix film producers Plus

The tough balancing act facing Schumacher’s Netflix film producers

Michael Schumacher is the latest sporting superstar to get the ‘Netflix treatment’, with a special documentary film airing on the US streaming giant’s platform this month. DAMIEN SMITH has the inside track on how the filmmakers gained access to tell the human story behind one of Formula 1’s most publicity-shy champions - while the man himself, for obvious reasons, is in absentia… 

Formula 1
Sep 25, 2021
The times that suggest Verstappen should be confident of F1 Russian GP recovery Plus

The times that suggest Verstappen should be confident of F1 Russian GP recovery

For the second race in a row, Mercedes has ended the first day of track action on top. It’s in a commanding position at the Russian Grand Prix once again – this time largely thanks to Max Verstappen’s upcoming engine-change grid penalty. But there’s plenty to suggest all hope is not lost for the championship leader at Sochi

Formula 1
Sep 24, 2021