NEWEY: COMMITTEE APPROACH AT RED BULL HAS NOT WORKED

Red Bull guru Adrian Newey has declared that the team’s design by committee structure has not delivered as expected and as a result, right now, the RB13 is not on the same level as pace setters Ferrari and Mercedes.

Newey said in an interview, “I had stepped right back, but it became obvious that the car under a more delegated, or a committee way of operating, wasn’t performing.”

When it became evident that the team had a problem, after the first preseason test in Barcelona, Newey was tasked to sort out the problem.

He was forced to taper down his role in the Aston Martin supercar project to focus on the Formula 1 team.


He explained, “As a kind of a duty to the team, to try and bring things forward, I have been quite busy since the second test, getting back involved to see what I can do to help.”

“It’s not what I want to be doing long term, but I’m happy to be doing it for a period of time.”

“I think what’s clear is that my stepping back in a system of regulatory stability, then the system was working, but that kind of committee approach hasn’t worked when we’ve had a big regulation change.”

“So that’s what we need to consider for the future,” added Newey.

F1 money and the need to change

May 9, 2017 by Joe Saward


Now that the Formula One group is listed on the NASDAQ stock exchange in New York, there is a solid argument that all of its financial dealings should be made public. The payments made to the teams are a key part of the system but until recently it has been very difficult to figure it all out because teams were so terrified of revealing anything. They have, after all, agreed to impressive confidentiality agreements as part of their contracts, but nowadays it seems they are less worried about retribution and so the numbers have become easier to find. This is not to say it’s easy and having someone to help is still essential, but there is less paranoia now. Once you know the system (and its many quirks) and the overall figure in the pot, one can calculate the revenue splits – as has been done in recent days. This information being made public is clearly something that is in the interest of the teams which think the system is unfair, and so they have revealed how the system works.

The thing about news leaks is that they are almost always done for a reason and the journalists involved need to understand why they are being manipulated and what impact the news is intended to have. Most don’t care. A story is a story and the impact not deemed relevant. ‘Exclusives’ drive traffic and are good for those who need recognition.

In this case, the leaks have clearly come from the disadvantaged because they want the world to see the system is unfair and for it to be changed. The big teams may be able to hide the numbers in their own accounts, but this is now useless. Will the press coverage change the situation? Or will it disillusion fans? The system has been unfair for many years, but it has not changed and unless someone rules it to be illegal then it will continue until the end of the contract, in December 2020.

The discussion now is what to do after that and obviously there is pressure for Ferrari (the Longest Standing Team) to give up its five percent ‘off the top’ share of the revenues, and for the other big teams to give up their pay-offs, which were disguised in various ways to justify them.
There is nothing wrong with the Column 1 and 2 prize money, which are basically percentage scales of payment for attendance and for results. Other funds are more dubious, such as the Constructors’ Championship Bonus, which gives the three teams which have won most races over a four-year period a big financial boost ($37 million, $33 million and $30 million). The Double Championship bonus of $35 million per year is arguable, but it would be wiser for the sport to do away with all these anachronisms and simply divide the money on an equitable basis, allowing for a small element of performance advantage.

The venerable old teams get more sponsorship, more merchandising and so in. They have innate advantages from their brand-building over the years. They don’t need more. The fact that they were given additional money was because they traded their political support for cash.

It is completely wrong that companies like Ferrari and Mercedes should have most of their F1 bills paid when their smaller opposition is fighting to survive. They will not agree to change that – turkeys don’t vote for Christmas – but a fair system, with budgets capped, would be so much better for the sport, not only in terms of finances, but also because it would probably improve the racing as well – and make it easier to promote. It would also make it more likely that other manufacturers would come. An even playing field is always attractive…

ARE RIP-OFF F1 EXPERIENCES™ THE WAY TO GO?

F1 Experiences™ have launched a variety of packages aimed at providing fans an enhanced experience while attending grand prix weekend, but the exorbitant prices – relevant to the normal seat prices – suggest that the architect of the new packages is perhaps a tad out of touch with reality.

Deposed F1 dictator Bernie Ecclestone never hid the fact that he was only interested in the Rolex-brigade who attended Formula 1 races, he cared less about the vast majority who were there watching from the stands.

The advent of the Liberty Media era of the sport has brought hope that their intent is to embrace all spectators in attendance, but the pricing of this latest initiative is absurd.

For example, the most modest single F1 Experiences™ package – the Podium package – will set you back $1029.00 for this weekend’s Spanish Grand Prix.

They will throw in a three day access, a track tour, a pit lane walk (on Thursday), a Paddock Club Party – all subject to an charge according to fine print – and a host of ‘goodies’ including: annual subscription to the F1 Access App, F1 Experiences™ Gifts (whatever they might be), a lanyard and ticket sleeve (!!!),  a race program and of course a numbered seat in Grandstand B which overlooks Turn 12.

Now keep in mind that few punters go to the races alone, and traditionally father and son or sons trundle along. Thus the one grand suddenly becomes two grand, if not more should you have a couple of kids and even a wife who also love the sport.

This is the cheap one, there are even more costly packages which tag on additional extras, including: the Trophy option at $1229.00 per ticket, the Hero option at $1679.00, the Champion option at $3359 or the big daddy of them all, the Legend option at an outrageous $7,889.00… Yes, per ticket!

The F1 Experiences™ website claims all these packages are Sold Out for the weekend in Barcelona. Wow!

A normal, no nonsense Grandstand B ticket normally costs $259.00 when purchased through the official Formula 1 site. But they are also marked Sold Out (at time of writing) if you wish to buy through this avenue.

However a scan of several alternative grand prix ticket providers show that a Grandstand B ticket can still be purchased for $257.00 – so technically they are not Sold Out as claimed.

Thus for the F1 Experiences™ they are lobbing on a few meals and some ‘goodies’ for an extra $770.00 dollars for gullible race goers. Any buyers for this undisguised rip-off?

Podium Package starting from $1029.00:

Let’s not just be negative and give due credit to Liberty Media for attempting to add value to the often mundane weekends by plugging in off-track activities which they describe as: “Running throughout the race weekend, the re-imagined fan zone will introduce a range of unique experiences such as racing simulators, a 200-metre zip line, state of the art Pit Stop Challenges and live performances from local DJs.”

In Spain, and beyond, fans will be treated to the “the launch of a dedicated fan television channel for those attending to get the inside track into the race, screening live Formula 1 interviews, expert insights, and exclusive appearances by current drivers and legends of the sport.”

“A number of competitions will also be on offer, with fans given a chance to win a series of fantastic prizes, including Paddock Club passes and photo opportunities with Formula 1 teams throughout the grid.”

“For the first time ever, one lucky winner will also get the chance to experience the thrill of a Formula 1 lap as they are driven around the track at speeds of up to 300 km/h in a two-seater racing car.” Nice!

Sean Bratches, Managing Director, Commercial Operations at Formula 1, said, “The launch of this weekend’s Fan Festival marks the beginning of this journey and we are excited about bringing races to life in this way over the course of the season and beyond.”

All these initiatives should be applauded, and perhaps the F1 Experiences will become cheaper as takers will no doubt be scarce, but maybe they should consider a roll back to the simple and traditional grand prix weekends of the seventies (pre-Ecclestone dictatorship) where fans did not attend to watch DJs or feast on sumptuous meals or do zip-lines, but rather reveled in a programme packed with on-track action in the form of support races throughout the weekend.

Call me old fashioned, but I do recall having a memorable time going to Kyalami in the seventies and spending two days watching non-stop motor racing including: single-seaters, touring cars and GTs – with the highlight of course being the grand prix.

Throughout the day we scoffed barbecued boerewors and steak rolls from our braai (I can still smell it!) and drank Coca-Cola (beer for the elders) from our cooler bag.

I know many who remember similar days at Silverstone, Spa, Estoril, Watkins Glen etc.

Maybe the Liberty big shots could take a trip down memory lane to see how it was done then. At very reduced costs (all these fake bells and whistles cost big money to host and organise) they may find an example for a future where ordinary fans can go to a grand prix with their cooler bags and homemade sandwiches and have a good time.

No need to be an out of touch, Rolex wearing high-roller to maximise the real Formula 1 experience, because the so called F1 Experiences™ is a misnomer if there ever was one.

Here we present a collection Ecclestone’s most famous quotes

Bernie Ecclestone has always been known for shooting from the hip in well controlled efforts to stir the pot and over the years has built up a collection of choice quotes which at times were outrageously provocative.

But be sure that every sentence he uttered had a hidden (or not so hidden) message in it, contrived to leverage whatever the self styled F1 supremo was plotting at the time of being quoted.

Here we present a collection Ecclestone’s most famous quotes:

“I can’t remember when I’ve ever been kind to a journalist.” Said during an interview with Telegraph.

“I was a bit of an idiot to do what I did to settle.” Said to Press Association after settling his German ciurt case for $100-million.

“I just hope that my reputation is of someone who is straightforward, honest and straight down the line, which is different to somebody who is going to screw people—because I haven’t done that. My reputation is worth more to me than money. I’d like to be remembered as the: handshake guy, the one who did it all on a handshake.” Discussing his style of deal-making with Management Today.

“If I did take away Silverstone and a British Grand Prix I’d be seen as a bad guy, but that wouldn’t bother me.” Said in an interview with the Mirror.

“You know I’ve got one of those wonderful ideas… women should be dressed in white like all the other domestic appliances.” Speaking about Danica Patrick to ESPN.

“I think the change that is currently taking place is very short-lived, as these social media people are starting to think it is not as good as they thought.” His theory about the demise of social media.

“The publicity generated by [Ayrton Senna’s] death was so much… It was good for F1.” Said to Folha de Sao Paulo.

“What I would really like to see happen is to find the right girl, perhaps a black girl with super looks, preferably Jewish or Muslim, who speaks Spanish.” His view on the best profile for a women F1 driver.

“In a lot of ways, terrible to say this I suppose, but apart from the fact that Hitler got taken away and persuaded to do things that I have no idea whether he wanted to do or not, he was in the way that he could command a lot of people, able to get things done.” Said in an interview with The Times.

“If McLaren had come clean and owned up none of it would have happened the way it did. He is a good friend of mine but Ron was six months pregnant and said he was a virgin. He knows he got off cheap.” Speaking after McLaren’s Spygate shenanigans which cost the team $100-million.

“He’s a first-class person. I always supported him. He could control Europe or America; he is able to deal with it. But I think he is very busy. Let him finish what he’s doing and then we’ll see.” His view on Vladimir Putin as told to Dailt Mail.

“I don’t celebrate. I don’t see the point. I went to my daughter’s wedding last week and walked her down the aisle. But I didn’t go to the celebrations the next day. I went home. I was there to do a job [give her away] and was happy to do that. I didn’t want to hang around. The whole thing was a huge affair, too much really.” Told the times after his daughter Tamara’s four day multi-million dollar wedding.

“I was deposed today. I’ve gone. That’s official. I am not running the company anymore. My position has been taken over by Chase Carey.” Said on 23 January when Bernie’s world changed forever.

Random quotes uttered by Mr E over the years:

• Anyone who doesn’t speak English isn’t worth speaking to
• Two races we’ve lost which I’m genuinely upset about were India and Turkey.
• If you say ‘Good Morning’ in America and it’s five past twelve you end up with a lawsuit.
• But when it comes to F1 I am a huge Lewis [Hamilton] fan because he is a super promoter of the sport. From a pure business aspect – sorry Nico if I have to say this – you are not so good for my business.

• I’d rather get to the 70-year-old guy who’s got plenty of cash.
• Waiters are like hookers, never around when you want them.
• [Donald] Trump would want to cosy up to him for sure, and he’d be right to do that. Which would be good for the world.
• When people want to built new tracks, they want to look at Silverstone. We don’t want it built like that. It’s quite embarrassing.
• Forget what others whisper in your ears. Most of that is pure rubbish that obstructs the view to what really is important. Always make your own decisions. That is what makes us human.
• Our sport is ruled whether it’s for good and bad, or whatever, for technical things. There’s lots of teams out there that could and should have done better if they’d have had technical things. I suppose in the end that basically revolves around how much money they’re gonna get.
• I am happy that we have somebody like Lewis [Hamilton]. I also couldn’t be like Lewis. I don’t like gold jewelry!
• Nico [Rosberg] is not seeking the limelight as Lewis [Hamilton] does. Lewis wants to be famous.
• Generally I still believe that Lewis [Hamilton] is the best champion that we have had in a long, long time. He manages to get to all different walks of life: red carpet, fashion business, and music – you name it.
• You have to hope that your opponents are unlucky. Never only rely on your own luck.
• If we didn’t have Nico [Rosberg] and Lewis [Hamilton] in those cars – there’s one or two guys down the field who in those cars would have delivered the same.
• [Maurizio Arrivabene is quite a character] but only for himself and not for Formula One.
• Take away Toto Wolff’s Mercedes shirt and send Sebastian [Vettel] down a street – nobody would recognize him.
• Lewis [Hamilton] is a hero in the UK. The British love Formula One. Sebastian (Vettel) is also not doing much for F1. People hardly recognize him on the street.
• A wise man who was always helpful to me: Mr (Enzo) Ferrari. He always supported me.
• As the cancellation of the German Grand Prix indicates, Germany is a terrible market for Formula One.
• I think we don’t need some people in Brussels trying to run countries that are some distance apart, who don’t speak the same language, don’t eat the same food. There’s a bit of difference between, Holland, if you like, and Italy.
• I have always been happy to have daughters rather than sons. You never really can be mad at girls for anything in life.
• [Donald] Trump, I think, is the sort of guy that if he maybe thought he’d made a little bit of a mistake, would find a way out, he wouldn’t want to say, “Well, that’s what I’ve done and I’m sticking to it, and I don’t give a damn.” Which is what the other people in America would be like.
• It’d be good for the world if [Donald Trump] won.
• Probably when I gave things to Slavica [ Ecclestone], you know the shares of the company, and things like that. And she put it all in trust and the trust sold the shares. Um, would I turn the clock back if I could and so I still owned the company completely? Probably yes. It probably wasn’t a good decision, but it was the decision that had to be made. Was I happy that I made it? No.
• Under the engine cover, no one cares what’s in there. Nobody cares.

SCHECKTER: GILLES WAS A VERY HONEST PERSON

It was 35 years ago that Joseph Gilles Henri Villeneuve lost his life during qualifying for the 1982 Belgian Grand Prix at Zolder.

Jody Scheckter spent two years as the French Canadian’s teammate at Ferrari where they developed a friendship which was, and is rare, among Formula 1 drivers.

Scheckter, Formula 1 World Champion in 1979, recollected the time of the tragedy at Zolder.

Speaking to ESPN, the South African recalled, “I was very close to Gilles when we raced, we were friends and we both lived in Monaco.  I retired, and I was in Monaco when I heard the news. Immediately I went up to his wife and provided support for the family.”

“It was quite incredible because the Canadian Air Force took us all to Canada with the body. Canada just stopped, it was incredible.”

“When we went to the funeral, the whole highway was full of people. The bridges were full of people. The whole of Canada stop and was devastated because of the lost of Gilles.”

“Gilles was a very genuine person, straight forward and we had a good relationship. I think he was a bit naive in his understanding. He was very upset with Ferrari when [Didier] Pironi passed him at Imola, because there was a rule that if we were first and second with nobody pushing you then you didn’t fight and maintain your position.” Gilles honored that rules when we were team mates, and that certainly played a decisive factor in winning my world championship title.

I suppose he honestly believed Pironi wouldn’t do it and sadly he did and worst Ferrari didn’t support him. Arriving in Zolder, he had that in his mind.

Villeneuve’s Formula 1 record shows six wins and 13 podiums in 66 starts, and although he never won a F1 world title he was one of the most popular drivbers of his era and a true legend of Ferrari.

BRABHAM TO RETURN IN F1 ?

The word on the grapevine in Formula 1 circles is that a group of investors is trying to bring the Brabham name back to Grand Prix racing - with the goal being to buy Force India and then use the Silverstone-based team to build a Brabham supercar company, following similar lines to the McLaren business model, with the road cars costing around $1 million each and the racing team advertising the production cars.

Brabham was one of Formula 1's most iconic brands from the 1960s until the early 1990s, when thenteam closed down because of lack of funding.

The story began in 1962 when Jack Brabham set up his own F1 team. He would become the only man to ever win the World Championship in a car if his own construction in 1966 and the team won a second title the following year with Denny Hulme. The Brabham team competed in just under 400 Grands Prix and won 35 races with Nelson Piquet adding two further World Championships in 1981 and 1983. The team won only two Constructors' titles in the dominant 1966-1967 period.

Sir Jack's youngest son David Brabham, who was an F1 racer in the early 1990s and won Le Mans with Peugeot in 2009. His other successes included the Bathurst 1000, which he won with his brother Geoff in 1997 and two American Le Mans Series titles in 2009 and 2010. For some years David has been working to properly protect the Brabham name, winning an important court battle at the start of 2013 to cancel trademarks in the European Union. The Brabham trademark has now reverted to family ownership.

"Brabham is a brand with over 69 years of racing heritage and it is our intention to see the name back on track," David Brabham says. "Since Project Brabham was launched, we have received a lot of enquiries from different parties who have expressed an interest in licensing the name and we are evaluating a number of options. We have no further comment."

It is not clear whether the family is actively involved in the project with Force India, but the word is that the funding for the programme is coming from the United States. Having said that, there are at least three or four other potential bidders for the team.

The arrival of Liberty Media and the listing of Formula One on the NASDAQ exchange has meant that there is a great deal more interest in the sport in the US investment community, with many investors believing that the sport will now head towards a franchise model. That is not going to happen overnight, but the likely changes along the way will mean that owning an F1 team should become a much more profitable business in the long-term, particularly if the team is being used to promote another product. There is believed to be a Canadian group involved and there may also be interest from Russian chemical industry billionaire Dmitry Mazepin.

The team owners are hoping to get between $260 million and $350 million for Force India. They are unlikely to get that, but there may be bidders willing to pay a little over the odds to secure the team. Force India current runs with a budget of around $135 million a year. About 60 percent of this comes from the Formula One group, the rest is made up of funding from sponsors who support Sergio Perez, from Diageo and from the Austrian water company BWT and from other small sponsors, such as Hype.

Source: JSNL

SAUBER SIGNS WITH HONDA

The Sauber team has signed a long-term Formula 1 engine supply deal with Honda, which will provide the Swiss operation with the potential to be more competitive in the longer term, and with a better financial package than it has had with Ferrari customer engines in recent years. The deal is probably for three years, to get the team to the end of the current commercial agreements in 2020. It is difficult to imagine it being longer than that, as decisions about continued partnership are dependent on the rules and regulations - and the commercial agreements - in 2021, which have yet to be decided upon.

As part of the deal, Sauber will buy McLaren-designed and developed transmission systems. Honda has been keen to secure a second F1 team in order to speed up the development process and wanted also to protect itself against any team claiming engines because of new regulations that oblige the engine manufacturers to supply teams that need engines - without having the right to choose their partners.

By securing a deal with Sauber, Honda will now have two teams in 2018, the same as Ferrari, while Renault and Mercedes will have three apiece.

There has been much recent speculation - most recently from TV pundit Eddie Jordan - that McLaren might switch to Mercedes engines at the end of the season, but this does not seem to be the likely outcome. Mercedes has provided four teams in the past, but the Stuttgart firm does not want to be seen to be pushing Honda out of the sport. While the deal with Sauber could provide a way for McLaren and Honda to part company at the end of the year, the finance that is coming from Honda to McLaren is considerable and this means that the partnership will continue.

There is opposition within Mercedes to McLaren being sold engines because there are fears that the Woking team might embarrass the factory team - as happened to McLaren in 2009 when it was the Mercedes works operation and agreed to allow the same engines to go to Brawn Grand Prix, which had been the Honda factory team. Brawn won the World Championship, which led to Mercedes buying Brawn and terminating its long-term arrangements with McLaren, forcing the team to look elsewhere and to conclude a deal with Honda for 2015.

However, in order to agree to continue the partnership, Honda is likely to have committed to get better engine technology to ensure that McLaren will be more competitive in the future. There have been rumours that the Japanese company may have agreed to purchase engine technology from Mercedes, although such an arrangement would never be made public, although the sale of technology between rival automobile firms is fairly normal within the industry. It is possible that Honda might have avoided that by doing deals with other suppliers, such as Mahle, the German automotive supplier that developed the turbulent jet ignition systems that are believed to be used in the Mercedes F1 power unit. This system was originally developed by an Australian engineer called William Attard, although he left Mahle in 2014 and now works for the Fiat Chrysler Automobiles's advanced engine and transmission controls division. In 2015 Ferrari acquired the Mahle technology for its F1 programmes and the Maranello team may be using Attard (or at least his ideas) as FCA and Ferrari are, in effect, sister companies.

Honda hopes to have a competitive F1 engine by the end of the current season after two and a half seasons of struggling to find the power and reliability to compete head-to-head with Mercedes, Ferrari and Renault. It is unlikely that any technology deal will be announced publicly because admitting such an arrangement would, in effect, be admitting that Honda engineers have been able to solve the problems, but to the world at large none of this would really matter.

Source: JSNL