Sebastian Vettels - There is no engine more powerful than a heart that's racing !

That time Sebastian Vettel met Davide Forè in Parma



Sebastian Vettel drives his Ferrari to win the Australian Grand Prix, the first round of the 2018 F1 World Championship. Now let's see what binds him to Davide Forè.



Blond, fair, not especially big: how Sebastian Vettel, the kid kart racer, showed up on race weekends when he commuted between Italian and German go-kart tracks. As is often the case, the first lines in his racing tales or history were written by dad or mum; in this case, it was his father, Norbert Vettel, who bought the boy his first kart in 1995. In Kerpen, one man takes notice immediately: Gerhard Noack, President of the associated Kartclub, a man with an unmistakable eye for talent.



(Sebastian Vettel with his father Norbert)

Noack again looks far into the future. He introduces Seb to Peter Kaiser, KSN Team owner, who takes the boy on. Vettel's first dream comes true, what with Kaiser being bound by his very close friendship with Seb's idol, Michael Schumacher who, at the time, was racing with Ferrari in F1 - like him, only 20 years earlier.

The turning point for Vettel arrives in 1998. Red Bull puts Seb in their own line-up of promising young talents. His victory in the JICA European Championship, October 2001, is but the first pearl of a string that in a little more than 10 years boasts four Formula 1 titles, four in a row, from 2010 to 2013.



(Nowadays: Vettel behind the wheel of his Ferrari SF71-H during F1 Pre Season tests)

But let's take a step back – beginning with Kaiser, interviewed by Vroom after the German's first F1 victory, which took place in Monza, 2008. Kaiser narrates an anecdote unknown to most, enlightening as it shows how dedication is such a factor in the Ferrari driver's psyche, even as a kid.

1996/97. The famous Kartodromo of Parma. In Vettel's role, but in the karting world, David Forè, standard-bearer of the Tony Kart team.

"Sebastian was very young and he asked me if he could go under the Tony Kart tent to take a look," says Kaiser. "I asked Roberto Robazzi if it'd be possible, explaining I had a driver who was very curious and extremely interested."

"The result was that Sebastian spent the next two days with Davide Foré and his mechanic Simone, helping to clean the kart and practically being his assistant. That weekend, Sebastian lived like a mascot of the Tony pilots, with everyone becoming very fond of him."



(Davide Foré with Tony Kart)

Mr. Kaiser adds that Michael Schumacher himself was impressed by Vettel. “He would say: that Sebastian was a hard worker, that he never stopped learning, and always tried to improve himself from every standpoint. Michael (Schumacher) was Seb's reference point. And Michael and I were always curious to see how far Sebastian would go, even if we immediately realized how talented he was. Of course, it was impossible to know with certainty if he'd reach F1 or not, and that he would win, but we were already aware of his talent ten years ago.”



(2016: Vettel during a test at Lonato with Tony Kart)

An exciting story, especially picturing the man in red raising the winner's Cup of the Australian Grand Prix, but a story that also wants to show the next Sebastian Vettels that there is no engine more powerful than a heart that's racing, a racing heart.

Source: Vroomkart International 

FORD AND FORMULA E

There are strong rumours coming from Detroit that the Ford Motor Company is going to follow the industry stampede into Formula E, with a factory team. Ford was committed to stay in the FIA World Endurance Championship until the end of 2019 but with the 2018-2019 "Super Season" having been introduced, the programme will come to end after Le Mans in June 2019 - unless Ford decides to continue. The obvious thing would be for the Ford programme would replace the current GT programme which is run by Ford Chip Ganassi Racing from its premises in Greatworth Park, near Banbury, in England.

The problem is that securing an entry may be a problem. There are currently 10 teams and a capacity for two more but Porsche and Mercedes has options to take the 11th and 12th entries, while means that Ford would need to acquire an existing operation if it wants to enter. The current teams are owned by Audi, Jaguar, Mahindra, China's Nio, Renault (soon to switch to Nissan branding) and DS, while BMW is working with the Andretti team. 

This means that there are only three options: Dragon Racing, Virgin Racing and Venturi. Virgin is currently allied to DS, but will lose the deal at the end of the year to Techeetah, which has been acquired by the PSA Peugeot Citroen-owned DS. Dragon Racing, owned by Americans Jay Penske, Daniel Loeb and Chad Hurley, did have a deal with Faraday Future but there was no money for that to go ahead and so the team is looking for a backer, while Venturi is currently working with Mercedes. The team is owned by Monaco real estate magnate Gildo Pallanca Pastor and actor Leonardo DiCaprio.

The company structure of the Formula One

The company structure of the Formula One group has never been uncomplicated but the old Jersey-registered Delta Topco, the parent company of the group has become Formula One Topco. What is interesting about this is that the board of directors features a few unexpected names (at least for the moment). There are various Liberty Media executives, including Greg Maffei, Richard Baer and Albert Rosenthaler, plus Chase Carey, Ross Brawn, the CFO Duncan Llowarch and the legal counsel Sacha Woodward Hill. There are now three representatives of the teams: McLaren's Shaik Mohammed Bin Essa Al-Khalifa (right), Sergio Marchionne (Ferrari) and Bodo Uebber (Mercedes), plus Peter Brabeck-Lemathe (chairman emeritus Of Nestle) and Donald Mackenzie (CVC). As part of the tidying up, which seems to be an ongoing process, the old Beta D3 Ltd has been transformed into Formula One Research, Engineering and Development, which will be covering the activities of Ross Brawn's departments which are looking at how to improve Formula 1 in the future. Beta D3 was originally a company that existed to loan money to other companies in the group and was purely a financial device.

ECCLESTONE: MARCHIONNE KNOWS WHATEVER HE DOES I WILL BE THERE

Amid paddock whispers regarding a breakaway series, Formula 1’s former supremo Bernie Ecclestone has met with dissenter in chief Sergio Marchionne in what appears to have been a constructive meeting between the two who share a similar vision for the way forward.

Gazzetta Dello Sport reports that Ecclestone and Marchionne enjoyed a half-hour meeting and although the pair did not reveal what was discussed it is clear they are on the same page as a confrontation with Liberty Media looms.

After the get-together, Ecclestone affirmed, “The things we talked about are easily imaginable and with Sergio, there is always a total convergence of our views. I’ve been close to Ferrari since the days of Enzo.”

“Marchionne knows my position. I am inside the ‘company’, he knows that whatever he wants to do I will be there, I will do it with him.”

“Marchionne is a person who, when he says something, he does it and does not turn back on his decisions. Liberty men must be careful with what they have in mind for the future.”

“My Formula 1, was a company that distributed large dividends to its shareholders, in this case CVC. Of course there were quarrels, disagreements and discussions but in the end, we always came out with what’s best. Why now change something that worked well? ”

It is well known that Marchionne has threatened to pull Ferrari from the sport if Formula 1’s traditional ethos is diluted, while Liberty Media are intent in reducing the ever-increasing performance gap between the big teams and the minnows.

In the past, Ecclestone has admitted favouring Ferrari in the behind-the-scenes murky dealings that characterised how the sport was governed for nearly half a century during his watch. The Maranello outfit was granted a number of ‘bonus’ incentives which includes higher payouts than their rivals and a right to veto any new rules.

Ecclestone explained, “It’s not a bonus, but a prize for participation because Ferrari has always been there. When I gave away money there was always a good reason. We distributed income to teams according to the results and some received extra to ensure their presence until 2020.”

“We need to be clear: F1 without Ferrari would no longer be F1. I have created this business always supporting Ferrari and Ferrari has always supported me.”

“It will annoy people when I say this, but the presence of Ferrari has attracted additional money that [in turn] was divided by the others. A world without Ferrari? I cannot even think about it!”

On the other side of the fence, Liberty Media are keen to reduce the exorbitant costs that it takes to race in Formula 1, let alone win races and championships.

The top teams are spending over half a billion dollars per season in their quest for the title, while smaller teams have to make do with a quarter the amount and have little hope of their drivers even making it onto the podium.

The playing field in Formula 1 is not level, but at the same time Ecclestone is not convinced that budget caps will resolve the situation, “Reduce costs? I do not believe it until I see it. The nature of Formula 1 is technical advancement and it is also not possible to constrain everything.”



“I too dream of a World Championship with 20 teams and 20 different engines, this would be utopia. Maybe Liberty Media is thinking or doing things that I cannot imagine…”

Asked to assess Liberty’s year in charge, Ecclestone replied, “I no longer have direct involvement to judge this. I see what others see and I see some incomprehensible decisions, for example getting rid of grid girls. It was not a brilliant idea.”
“I also see they are throwing away a lot of money. For example, my FOM, excluding the TV staff, has always operated with less than 30 people in the offices – it was stringent but efficient.”

“[Now they have 150 people] probably not necessary. Unless in a short time they can deliver three or four times what I did.”

For now, it is a case of sabre rattling and posturing by the chief protagonists. A war between Liberty Media and their supporters versus Ferrari and their allies would be detrimental to Formula 1 and it has to be assumed that the stakeholders are doing all possible to avoid a clash or split.

Whatever the case, Ecclestone has made it clear where he stands if shots are fired, as well as offering his help if a breakaway series – led by Ferrari – does become a reality.

Meanwhile, Marchionne had only this to say of their tete-a-tete: “Ecclestone is looking very fit…”

Formula 1 team budgets for 2018:

Pos Team Budget Estimate
1 Mercedes €450-million
2 Ferrari €430-million
3 Red Bull €350-million
4 McLaren €250-million
5 Renault €200-million
6 Sauber €135-million
7 Williams €135-million
8 Toro Rosso €125-million
9 Haas €110-million
10 Force India €110-million

WOLFF: BREAKAWAY F1 COULD HAPPEN IF WE DON’T ALIGN OUR VISION

Mercedes chief Toto Wolff has dropped a bombshell ahead of the season-opening Australian Grand Prix, in a deliberate or inadvertent warning to Liberty Media by suggesting that the prospect of a breakaway championship is very real as is Ferrari’s threat to depart at the end of 2020.

The timing of Wolff’s statements coincides with Liberty Media’s second season in charge of the sport, on the eve of the first round in Melbourne and at a time when uncertainty over the future direction of the sport threatens to tear it apart.

In what could be the beginning of a power struggle, two camps have emerged: Ferrari led by their feisty president Sergio Marchionne and allies in one corner with Liberty Media led by Chase Carey and his crew as well as their supporters in the other corner.

In an interview with Press Association Sport, Wolff makes it clear where his loyalties lie, “The perspective of doing something else is a realistic one, and it could happen if we don’t achieve to align our vision.”

“Marchionne has a clear vision of what Formula 1 should represent for Ferrari, which is a purist sport that isn’t a shopping channel. I would strongly encourage all of the sport’s stakeholders not to try and provoke him.”

“I agree with most of the things Sergio says because Formula 1 has a certain DNA and it is a sport that needs to stick to its roots. So, don’t mess with Sergio Marchionne. Formula 1 needs Ferrari much more than Ferrari needs Formula 1,” warned Wolff in what could be perceived as another message (direct or indirect) to Liberty Media.

This is not the first time that Wolff has publically supported Marchionne, but at the same time the Mercedes boss is keen to avert a split, “I will give it everything to align the vision among us by seeking consensus and accepting compromise.”

HAMILTON: RIGHT NOW RACING IS JUST RIDICULOUSLY EXPENSIVE

Lewis Hamilton is on top of the world in Formula 1, this season his quest is for a fifth world championship in Australia this weekend, but there is mounting concern at grassroots level that motorsport is becoming unaffordable for anyone but rich kids as karting fields shrink in what is one of the hotbeds of junior racing.

With costs spiralling and some junior kart teams racing on six-figure budgets, youngsters hoping to emulate Hamilton’s rise from social housing to stardom are being priced out of contention.

Britain’s Motor Sports Association says the number of MSA licence holders in karting — where future champions learn their craft — has fallen by 30 percent in the decade since Hamilton made his grand prix debut in 2007. Less than 12 percent of the total are under the age of 21.

“I don’t think it’s an insurmountable problem but it’s certainly something we need to address quickly,” David Richards, the former F1 team principal who was appointed chairman of the MSA in January, told Reuters. “Otherwise, where will the next Lewis Hamiltons come from?

“So it’s going to be one of our big focuses now over the next couple of years at the MSA, looking at karting and how we can make it more accessible, how we can make it more affordable, how we can stop it becoming too bureaucratic…”

Richards, whose Banbury-based Prodrive motorsport and engineering company runs race programmes for manufacturers including Aston Martin, recognised that Britain was still well off compared to other nations.

The country has produced a string of top drivers, boasts world-class engineering and most of the Formula One teams are based there.

Richards was concerned, however, about what could happen five or 10 years down the road, “If there are such big barriers to participation that we can’t get the talent in the first place, that means we don’t get the best people in. I really do believe that at the grassroots level today, those barriers do exist.”

Speaking at the launch of his Mercedes team’s W09 car last month, Hamilton doubted it would have been possible for someone from his background, without money or connections, to come through now.

“Right now racing is just ridiculously expensive,” said the 33-year-old. “I think it’s much harder for anyone from a council estate in Stevenage to get to Formula One now. It’s pretty much impossible because you don’t have the money.”

Richards suggested electric karts, which can be electronically tuned to ensure they are evenly matched, could be one way to contain costs and level the playing field, “We can look at ways in which we make sure that the karts are all equal and we don’t end up with this ridiculous situation where people are buying 10 engines to find the best one.”

“We can’t have motorsport accessible only to the rich. This sport has got to be accessible to far more people,” added Richards.

The former Benetton and BAR F1 team boss, who was also a world rally champion co-driver and whose company ran the Subaru team that won titles in the 1990s, hoped to get more women involved at all levels and saw esport as something to be embraced.

The fate of the British grand prix was another concern, with Silverstone hosting the first Formula One championship race in 1950 but its future uncertain after 2019.

Circuit owners the BRDC have activated a break clause in their contract that means a farewell unless a new deal is struck.

Richards, who has not been involved in negotiations so far, said the race was a key asset that the country should not let slip — particularly in the light of impending Brexit.

“I think the opportunity to use a flagship event like the grand prix to promote Britain at a time when we need to be promoting ourselves, our engineering expertise and our talent in this country, shouldn’t be lost on government,” he said.

“We will do everything we can as a governing body to try and find a way of retaining it and are looking at the opportunities to do that.”

Source: Reuters 

Fourth Quarter and Year End 2017 Financial Results for Formula 1

F1 TEAMS TO GET $47-MILLION LESS THAN BERNIE GAVE THEM

Liberty Media today released the Fourth Quarter and Year End 2017 Financial Results for Formula 1, revealing the $47-million hit teams will take in income relative to what was dished out at for 2016.

Formula 1’s income has been on the decline for some years now and this was expected, but the fall in revenue paid to teams from $966-million in 2016 to $919-million last year is the first time they have received less than a previous year.

The dip in income can be attributed to one less round in 2017 compared to 2016, plus the departure of UBS and Allianz among other things.

Interestingly income fell by a nominal $12-million (less than one percent) from $1796-million in 2016 to $1784-million last year.

Bernie Ecclestone’s era of a one-man (plus a few minions) show was a very lean operation, while Liberty are already 120 strong at their new headquarters and are likely to swell to 150 during the course of this year.

In the report below Liberty write: “Cost of F1 revenue increased primarily due to spend on fan engagement, filming in Ultra High-Definition and higher freight costs, which more than offset reduced team payments. Selling, general and administrative expense also increased for the fourth quarter and full year 2017 as a result of additional headcount and new corporate offices.”

Formula One Group

The following table provides the financial results attributed to the Formula One Group for the fourth quarter and full year 2017. Approximately $13 million and $49 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Formula One Group in the fourth quarter and full year 2017, respectively.

“The 2017 season was successful in increasing viewers across TV and digital platforms,” said Chase Carey, Formula 1 Chairman and CEO. “In 2018, we continue to focus on fan engagement through increasing carriage on linear and digital platforms, enhancing the race excitement, hosting more F1 Live events and collaborating with our partners. We look forward to the start of the season later this month in Melbourne.”

Liberty completed the acquisition of F1 on January 23, 2017. For comparison and discussion purposes, the pro forma results of F1 are presented below for the three and twelve months ended December 31, 2017 and 2016, inclusive of purchase accounting adjustments, as if the acquisition of F1 occurred on January 1, 2016.

The financial information below is presented for illustrative purposes only and does not purport to represent the actual results of F1 had the business combination occurred on January 1, 2016, or to project the results of operations of Liberty for any future periods.

Primary F1 revenue represents the majority of F1’s revenue and is derived from (i) race promotion fees, (ii) broadcasting fees and (iii) advertising and sponsorship fees. F1 held 20 races in the 2017 season compared to 21 in the 2016 season.

Race promotion revenue decreased in the fourth quarter, primarily due to legacy contractual terms of one Grand Prix event, which provided for a one time material step down in the promotion fee effective after the 2016 season and carrying through the remaining term of the contract through 2020. This agreement was entered into by previous management and is atypical and not reflective of terms carried in F1’s other promotion agreements.

For the full year 2017, race promotion revenue decreased due to one less event being held, the aforementioned reduction in one promotion fee, as well as a contract amendment discussed in the second quarter that provided for a decrease in promotion revenue which was partly offset by the impact of increases in other revenue streams.

The reduction in race promotion revenue for the fourth quarter and full year was partially offset by the impact of other contractual increases.

Broadcast revenue increased in the fourth quarter and full year 2017 due to the impact of certain contractual rate increases. The increase in the fourth quarter was also driven by the pro-rata recognition of broadcast revenue across the season, as 6/20 of the full year fees were recognized compared to 6/21 in the prior year.

The increase in the full year was partially offset by the adverse impact of weaker prevailing foreign currency exchange rates used to translate a small number of Pound and Euro-denominated contracts into US dollars.

Advertising and sponsorship revenue decreased in the fourth quarter primarily due to the prior year recognition of a proportion of two non-renewed sponsorship agreements, partially offset by revenue from one new sponsorship contract.

For the full year, advertising and sponsorship revenue increased as higher fees and growth in certain contractual arrangements plus revenue from new sponsors more than offset the aforementioned two non-renewed agreements.

Other F1 revenue increased modestly in the fourth quarter and full year 2017, primarily due to higher logistics and digital media revenue, contributions from broadcasting in Ultra High-Definition and higher hospitality revenue, partially offset by lower spend by competing teams in the GP3 series due to it being the second year of the GP3 vehicle cycle.

Operating income decreased in the fourth quarter and operating loss increased for the full year 2017. Adjusted OIBDA decreased in the fourth quarter and full year 2017 primarily due to the aforementioned reduction in revenue and increased costs.



Cost of F1 revenue increased primarily due to spend on fan engagement, filming in Ultra High-Definition and higher freight costs, which more than offset reduced team payments. Selling, general and administrative expense also increased for the fourth quarter and full year 2017 as a result of additional headcount and new corporate offices.

Additionally, stock-based compensation increased related to awards granted to members of F1 management.

On January 22, 2018, Liberty provided revised expectations regarding certain F1 tax considerations. Liberty now expects a mid- to -high-single-digit effective cash tax rate on UKEBITDA for the F1 business.

This update is due to the cumulative impact of changes in UK tax law, conclusions reached by Her Majesty’s Revenue and Customs regarding the future treatment under UK tax law of certain historic transactions and the effects of an F1 corporate restructuring in the fourth quarter of 2017.

F1’s adjusted OIBDA (as reported) less stock-based compensation is a reasonable proxy for UK EBITDA for this purpose.

F1’s total net debt to covenant OIBDA ratio, as defined in F1’s credit facilities for covenant calculations, was approximately 7.1x as of December 31, 2017, as compared to a maximum allowable leverage ratio of 8.75x.