Ferrari to lose special rights

521782458The sports imminent new owners Liberty Media, have suggested that future prize money allocation rules could change – and that Ferrari could also lose their financial privileges from the dividing of the F1 pie.

The takeover from Liberty is expected to be completed this month, with the future direction of the sport now being thrust into the limelight. Liberty are expected to revamp the sports popularity which would in return increase future revenues.
The popular consensus amongst the midfield teams, would be for liberty to distribute the pot much fairer than previously. Older teams have enjoyed loyalty payments for being involved in the sport, with their historical status.

The biggest beneficiaries have been Ferrari, they reportedly receive in the region of $90 million for just turning up! This is more than double what most teams receive.

Liberty’s chief executive Greg Maffei is tasked with bringing in a new dawn for F1.

“If you’re Ferrari, you have enormous sponsorship revenue that goes directly to you,” Maffei was quoted as saying by Forbes. “That’s going to be impacted more positively by great races.

“So thinking about balancing the team payments, so they’re a little more balanced and creates more fairness, has to be weighed, in Ferrari’s mind, I would expect, by the fact that creating a great platform helps our sponsorship revenue, too, so there’s give-and-take.”

It remains to be seen how the power mongers at Maranello respond to such speculation. They believe Ferrari are F1, and demand the right to be paid for competing.

Interesting times ahead.

5 responses to “Ferrari to lose special rights

  1. Pingback: Ferrari to lose special rights | BWOAH Racing Acid·

  2. Ferrari’s “special” financial deal was the result of Eccelstone breaking Ferrari away from FOTA. The simple fact is the current Concorde Agreement, which includes the payment schedule, runs until the end of 2020 which Liberty can’t change. The more you read about Liberty the more you come to the conclusion they don’t have a clue what they are doing.

    • 2021 is a good time to dump the old payment system.
      And a new deal takes a few years anyway in F1, so there is time enough.

    • Yes, the Ferrari deal was a “divide and conquer” by Ecclestone. That’s his way of doing things. Nothing negative (at least in this response) about Bernie, but the difference with the previous- and current sale of the F1 rights, was that the previous buyers only had $$$ in mind. They left Ecclestone in control. No change of vision.
      Times, they are changing. Liberty does have a vision for the future, and it does not include Ecclestone. Yes, they are Americans, but that only means they love a good show.
      Liberty also understands quite well that trying to negotiate a new Concorde Agreement will take a long time.Teams need time to get used to new ideas. IMHO it would also prove next to impossible for Liberty to change teams hunger for cash, without having some public support. And they are working on it right now.

      • The fact is four teams get a historical payment and the special Ferrari payment isn’t $90M, it’s $70M. Ferrari in total get an extra $105M, but both M-B and RB get $75M extra, while McLaren get $32M and even Williams get an extra $10M. Do you think all four are going to give up that extra money?

        The reality is Ferrari get only $30M more of extra payment than M-B and RB do.

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