The billion dollar question is causing problems in Formula 1

Mercedes, Red Bull, Cadillac?
The billion dollar question is causing problems in Formula 1

Formula 1 is growing strongly. It attracts newcomers – and raises questions worth billions. Because the amount that new teams should currently pay seems too low in view of the boom. At least that’s what the race teams say. The world motorsport association FIA is surprised.

Formula 1 is heading for a power struggle in the dispute over the widening of the starting field. The American project of Michael Andretti and Cadillac, with the support of the boss of the world association, is pushing for admission to the closed club of Formula 1 teams. But the majority of the current ten racing teams do not want to share the billions growing revenue with newcomers, and racing series bosses are also holding back.

The president of the International Automobile Federation FIA, Mohammed Ben Sulayem, went public with his annoyance at the resistance of the premier class in an unusual move via his private Twitter account. Ben Sulayem said he was “surprised by the negative reactions” to the plans of former Formula 1 driver Andretti. The interest of major automakers like Cadillac’s parent General Motors in Formula 1 must be “encouraged”, demanded the FIA ​​boss.

The best keeper’s warning of the rules shouldn’t impress team leaders. It’s just too much money. A newcomer is currently expected to bring $200m (around €186m) in compensation to established teams. This is intended to mitigate losses for racing teams if marketing revenue is shared by eleven teams instead of the previous ten. $20 million per team – that’s obviously not enough for most.

Mercedes fears a softening of the value

The value of the Formula 1 brand and the amount of revenue from rights sales and advertising contracts have recently increased massively thanks to the boom in the American market. Many industry experts therefore consider a compensatory payment of at least $600 million to be appropriate. “Money will be a big factor in the end. It would be unfair to let other teams indirectly pay for newcomers,” Red Bull team boss Christian Horner said last year.

Mercedes team boss Toto Wolff also spoke about the Swabian carmaker’s massive investments and stressed: “The value of Formula 1 is that there are a limited number of licensees. And we don’t want to dilute this value by simply adding teams.” “The question always comes up with newcomers: ‘What do you bring to the show?’

But Andretti does not want to be rejected. His bid to buy into the Sauber racing team failed in 2021. With General Motors, once the world’s biggest automaker, as his partner, the former McLaren driver and son of ex-world champion Mario Andretti sees now paved the way to Formula 1. At the latest with the new technology regulations of 2026, it could be so far away, Andretti is even aiming for an earlier entry. “I believe it 1000%,” said the 60-year-old.

Only two racing teams explicitly support Andretti

Andretti sees all the requirements fulfilled and his project “clearly ahead of the competition”. In the US state of Indiana, his motorsport company is building a new big racing factory. Moreover, he has already started recruiting staff with Formula 1 experience, Andretti said.

The response of the management of Formula 1 to the lapidary remarks of the ex-racing driver remained cold. “We all want to make sure the World Championship remains credible and stable. Every potential new contender will be vetted to meet these requirements,” the racing series leader said. Every new competitor not only needs approval from the global association, but also from Formula 1, he said.

Only teams Alpine and McLaren have recently assured Andretti of their support for an entry. Formula 1 chief executive Stefano Domenicali was reportedly unhappy that Andretti approached all team bosses at the Miami race and wanted to persuade them to give his plans written approval. That’s not how you do business on the racing series, Domenicali told the American, the BBC reported.

The fact that the FIA ​​president is now siding with Andretti could deepen the rift between the global association and the racing series. Formula 1 is resisting FIA interference in day-to-day business and has long wanted to reduce the umbrella organization’s influence on important decisions. The conflict on the starting field could become the catalyst for a violent rupture.

#billion #dollar #question #causing #problems #Formula

Leave a Comment

Your email address will not be published. Required fields are marked *

Shopping Cart