THE FACTS

In light of dramatic rule changes set to hit F1 over the next few years, Ferrari President Luca di Montezemolo has once again brought up overt threats about a breakaway series. He insists that Formula 1 could survive under a different name and demands that the sport's governing bodies not give up "everything that made our sport for the sake of costs." Even though Formula 1 commercial rights holder Bernie Eccelstone has never taken such threats seriously, di Montezemolo persists in his keen opposition to any dramatic changes in the spending structure for elite teams and continues to raise the specter of a breakaway series.

Formula 1 is on the cusp of signing a new governing Concorde Agreement with the FIA and di Montezemolo is taking this opportunity to call for some genuine changes. Furthermore, he has made it clear that if he does not see such change, he is prepared to leave Eccelstone and the sport's owners - CVC Capital Partners - behind. “We need to think about what to do,” the 63-year-old told German magazine Auto Motor und Sport. “It cannot go on as it is now. It cannot be that we give up everything that made our sport for the sake of costs – F1 is about extreme innovation and technology. Do we need the name 'F1'? I believe we could go on with a different one."

Although lauding Eccelstone for his "passion for racing and not the stock market" di Montezemolo strongly disagrees with the current Grands Prix starting times. The Italian stated that he believes the sport is missing out on too many potential viewers due to the current schedule. “I don't think it's good that in July or August the races begin at 2 o'clock when most people are lying on the beach,” he told German publication Sport Bild. “Football games don't get started until 5 o'clock or later.”

MY TAKE

I agree with Monte when he says that the team owners really only have three options. First, they can renew with CVC, but with a cost structure that allows the elite teams to spend to their heart's content. This deal would need to run into the double-digits in years and have assurances that an FIA President could not arbitrarily make changes. As part of this option, the teams could continue to back Eccelstone as F1 commercial rights holder. Monte likes Bernie because of his business savvy mixed with an keen understanding about F1 in general and wants him at the helm for the duration.

Second, the teams could search for a totally different promoter and start negotiations. This option would be difficult and could tie the sport up in contract disputes for years to come. I believe that this would be the most unattractive of the options from the teams' point of view. But it is an option nonetheless.

Finally, the teams could establish their own organization. If they take this drastic route, Monte would insist on Bernie as chairman and would grant him significant powers - maybe even more control than he has today. Such an organization would likely put a much stronger emphasis on marketing and expanding the sport's world-wide TV audience - especially in America.

I am not sure when this love affair between Bernie and Monte got so hot and heavy. But it appears that the two are now joined at the hip. This type of power consolidation is just what Monte needs to make his threats of a breakaway series a reality and push the teams into agreeing with him on costs. All of these men are tough as nails and they don't take any prisoners. Regardless of whose side you are on, it should be a very interesting fight.

Just my take.

SOURCES

F1 could survive under different name, says di Montezemolo | F1 News | Jan 2011 | Crash.Net

 

Here we go again...

Is it the FIA that's calling for these changes to budgets, engines, etc? I was under the impression that it was Bernie that wanted to slash budgets to appease the smaller teams.

In any case, a breakaway series wouldn't be ideal, imo but on the other hand, I'm disappointed with the general direction that Formula 1 seems to be headed with a broader emphasis on cost cutting while new technology is taking a back seat. Ideally, I'd like to see a lot less regulations on things like aero and engine configurations that would mix up the racing. Sure, teams would have to pour INSANE amounts of money into R&D to stay competitive but the racing would surely be more fun to watch and as has always been the case, the tech would eventually trickle down into street cars.

In any case, I just want to see open wheel racing brought back to its original glory, and I'd like to see it broadcast at times that work better for the larger markets. If that necessitates a new racing organization, that wouldn't be ideal, but so be it.

 

^^ Bernie is merely the commercial rights holder for F1.

He has no official say over rules or regulations.

Certainly he has input - as does the FOTA - but the final say comes from the FIA.

I don't think Bernie really cares as long as he makes money on his end.

I don't like the small engine concept - even with turbo chargers.

 

I agree and disagree. I like that we have a lot more teams in the mix right now instead of just ferrari and Mclaren. I think that's good for the sport. I don't know if I think the 4 cylinders is a good idea but some cool tech could come of it. This day in age where weight is becoming the new focus that could be cool.


I do hope they change the times of races so it can appeal to a larger audience. In the US the time suck except for maybe 3 races.

 

I only really agree with the time changes. I know Ecclestone was thinking when he made the Singapore GP at night, but that is one race out of how many?


How many teams were in F1 in the 70s and 80s? How many were there in the 90s? That number dwindled in the the next decade after that, and is only now starting to open up to more teams.

What really will limit cost is not limiting R&D. Teams will spend that to be competitive anyway. The real cost limitation would be to allow actual creativity on the teams part in the way the cars are run. So limit displacement. Allow any engine type. Make an approval process for the FIA, FOTA, and CVC for non reciprocating engine assemblies. Then allow Aero but make sure the car fits within a certain box.

Literally have a big box that the car will fit in.

If the car fits without touching its legal.

Ban servo controlled aero. (F-duct, computer adjusted angle of attack, GPS based adjustments)

Then let the engineers go wild. Teams with money will spend it. And to those with actual ideas they can still be competitive.

 

Only a very.very few teams (3, maybe 4) can compete at the financial level of Ferrari. And Ferrari naturally loves this ever-widening advantage. The F1 plan for instituting cost limits is the ONLY way to field a fully competitive field. Look at the speed discrepancies that were obvious in every race this year. Now multiply that many times more. The speed differences would be more silly than at Le Mans with its racing of 4 different classes all racing at one time for 24 hrs!!

Maybe watching Webber get launched at Valencia because he ran over the top of a very slow, Team Lotus FI car, is the excitement people want to see. F1 can have these new ultra slow Team cars become the fun, new, hazards that will make the races more exciting and unpredictable?

I'm game. It would maybe be more exciting than watching a race decided only by tire changes. But unfortunately, I am certain it would also result in a very tragic manner. And in the end we end up with these same new rule changes as the result of a tragic event. And I would think that more current F1 teams would quit F1 if they could not afford to ever be truly competitive with the big guys, and fewer new teams would want to join.

Endless spending will always be Ferrari's main advantage. They will fight like crazy to not be put in amongst the masses.

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