F1 » Mercedes accounts show spiralling cost of F1


The latest corporate accounts from Mercedes lay bare just how expensive F1 has become, graphically revealing that the motorsports division spent a record £242.1 million in 2011.

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andrew2k

February 03, 2013 3:24 PM

A good reason as to why F1(and MotoGP)need a defined budget/spending cap and its a must in an uncertain economic climate and disappearing sponsorship.

Sadly though when you have teams like Mclaren, Ferrari and RB who have essentially cartelized the sport there is just no way I could see a budget cap happening.

In the end F1 really need to do something about the cost of competiting because the high budgets are not good for the sport as it essentially leads to small grids. If anything I would be disappointed if F1 were to go down the same road as MotoGP e.g. production bikes occupying the same grid as prototypes, in the case of F1 we see a indycar-type chassis occupying the same grid F1 chassis and all in an attempt to fill a disappearing grid.

Ptolomy - Unregistered

February 03, 2013 3:39 PM

The biggest cost for Mercedes F1 is coming up shortly. That would be the liability of Lewis Hamilton. Just wait until everything isn't going his way in a couple months. The damage The 3-Pointed Star will take will be more than Mercedes can handle.

benignlyindifferent

February 03, 2013 3:49 PM
Last Edited 570 days ago

Williams F1 reported in their Financial Statements, which you can download online, that they employed 515 people and had income of approximately 160 million dollars. And they made money. It is difficult to comprehend how the respective boards of directors of the top teams can drive up their spending over costs to levels well beyond what they would do in any of their other businesses. Maybe we don't need a spending cap. Maybe we need a rule that says teams can spend what they want provided they present their audited statements at year's end to prove they made money, and if did not, be required to reduce their staff by an amount proportional to the deficit for the next year.

JJ - Unregistered

February 03, 2013 4:56 PM

I think Brawn will be out after this season. I think Merc have already written off 2013 and are making changes now to take on 2014.

IMHO, I would love to see Brawn take over McL. Or even if he took over Sauber would be a monumental boost for them. All a pipe dream.

Regardless, sad to say I see Brawn's days at Merc numbered.

elijah

February 03, 2013 5:02 PM

It will not be long before Mercedes sells their team.
When Schumacher was recently questioned about lack of funds being a factor in their uncompetitiveness, he said, "It's a factor.
Over the years, Red Bull built an infrastructure and has a budget giving them the possibility to respond to anything in the best possible way.It is nothing more or less than what we had at Ferrari,".

Mercedes have not been spending enough to gain success, despite mounting costs. As has been said by others,Mercedes will splash out and then get out.

richard

February 03, 2013 5:41 PM

benignly. dont forget that williams also manufacture and maintain chasses for another formula, AND they developed flywheel kers for porsche (i think). AND they were paid a hefty whack to begin development of the new jag that has now been canned.

benignlyindifferent

February 03, 2013 5:58 PM

Richard,
Good points but it seems that some of those profits are segregated from the race division but I can't tell when you look at the financials for the technology section. But regardless, my point is Williams clearly run their team as a business and they have posted their audited financial statements for the past several years. The NBA, NFL, NHL and other pro sports with spending caps do something similar. MS suggests a lack of funding is a factor for the lack of success and I can't see how when they have double the staff, triple the budget, and sell engines to countless teams. I am quite as the influence of Mercedes is enormous but they could withdraw from the sport after one board meeting and a bad quarter for their road car division. Maybe Williams and a couple of other true race teams should collectively but Cosworth and develop a common engine because if Mercedes leaves the sport Pure might become an option and wouldn't that be a nightmare:)

richard

February 03, 2013 6:20 PM
Last Edited 569 days ago

beningly. the merc enines are manufactured by hpe, previously ilmor, but now under the control of daimler ag. so cannot be included in merc f1 income. williams is different as everything they do is under the control of the one company.
i would imagine that if things do not improve at merc f1, then daimler would pull the plug, but continue the hpe supply of badged engines. the team is a stand alone entity, and could be sold on as a team.

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