Liberty F1 cost cap: €150 million including €100 million ‘participation fund’

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HOW LIBERTY GOT LUCKY WITH F1 2017

F1 cost cap: €150 million including €100 million ‘participation fund’

…the notion of a cost-capped budget set somewhere around the $150m per season mark appears to be crystallising, although it’s far from being universally agreed. Under one model seen by F1 Racing, teams would receive $100m per season from Liberty as a ‘participant’ fund. They would then be free to source a further $50m from sponsors and other backing. Their total audited spend would not be allowed to exceed the notional $150m, with $10m ‘fixed’ as engine spend and driver salaries also bundled into that total. End-of-season prize money distribution, based on championship position, would be shared on a sliding scale from a maximum of around $70m, to a minimum of $10m.

The underlying principle here is that teams would receive more from Liberty to participate, but less performance-based cash, thus ensuring, in theory, that competent minnows such as Manor need not go bust. The promise of F1 team ownership being a viable business model for those not owned by global car manufacturers should then entice more new entrants to join, thus helping underpin F1’s longevity. Simples?

linkedin.com

Hamilton: ‘Mercedes one-two feels better with Valtteri’

“Yes, with Valtteri it is different,” Hamilton told Bild.

“It just feels better than a one and two with Nico. Valtteri supports me a lot. It is a completely different level professionally.

“As a team, we are more united than ever. And when it’s the other way around, I’ll help and support him,” Hamilton added.

f1i.com

Button asked stewards to ban him for life

Jenson Button had a laugh with the stewards after the Monaco Grand Prix, following the Brit’s collision with Pascal Wehrlein.

…jokingly asked the stewards if they could ban him for life to block potential for a future deal. The McLaren line-up in 2018 is still unknown, and Button is the only driver signed with the team for next year.

f1today.net

Ferrari first to test “Shield” cockpit protection in Silverstone

F1 Report: ‘McLaren decision to divorce Honda has been taken’

The McLaren hierarchy have already taken the decision to split with Honda at the end of the season, according to F1 Report guest Mike Gascoyne.

The former Toyota technical boss believes the marked change in McLaren’s language about their engines partners – with boss Zak Brown describing Honda as “lost” and team chief Eric Boullier damning their performance in Canada as “completely unacceptable” – is a signal that McLaren have already started to draw up the divorce papers.

skysports.com

YOU CAN READ THE TJ13 TAKE ON THIS STORY HERE

Palmer has no explanation amid rumours

Jolyon Palmer says he has “no explanation” for his struggle to keep up with his teammate Nico Hulkenberg at Renault so far in 2017.

Team boss Cyril Abiteboul recently gave the Briton a hurry-up, amid rumours a mid-season driver change – potentially involving tester Sergey Sirotkin or even Robert Kubica – might be on the cards.

grandprix.com (GMM)

YOU CAN READ THE TJ13 TAKE ON THIS STORY HERE

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8 responses to “Liberty F1 cost cap: €150 million including €100 million ‘participation fund’

  1. F1 cost cap: €150 million including €100 million ‘participation fund’

    The American clowns at Liberty are simply trying to repackage what the, surprise surprise, NFL does. There are so any holes in this idea that if it was a ship it would sink.

    First off, the $100M per team or $1B total is exactly what FOM pays out now, yet Liberty are proposing that the schedule be increased to 25 races per year from the current 20. So Liberty wants 20% mores races while the teams get nothing more. At 25 races per year the teams would need two sets of crews to be able to do all the races. Who’s going to pay for them – Liberty?

    Second, what happens if the FIA issue two new team licences? Is Liberty simply going to say sure and fork $200M more out each year? I doubt it

    And drivers salaries bundled into the total? Hahahaha. Fiat, Red Bull and Mercedes will simply put their drivers onto their corporate payroll.

    I could go on and on. I know in negotiations you have to start somewhere – but this is no where and it’s going no where.

    Ultimately I believe Ferrari, M-B, Renault and Red Bull will buy out Liberty and then real change will happen as half the profits won’t be siphoned off, and then the small teams will really benefit.

    • At that rate Cav I can see the share price dropping..and then like you say..”a buy out”
      I do believe our sport has now gone the same way as many popular entertainment sports and I,like you, cannot see how 25 races will be possible. This kind of takes the exclusivity out of the Jewel of motor sports.

        • Yup. I’m watching WEC races more and more. Was watching day / night practice yesterday and the quality of the technology is phenomenal and the closeness of the racing goes across all the categories. The FIA certainly got the WEC right with no need for a bunch like Liberty.

          • Only bad thing I can think of is that there is no more audi this year. Not that I’m a fan of the brand, but they added a bit more diversity to the tech side and to the possible race outcome. But yes, still can’t figure out why the FIA doesn’t apply the same kind of restrictions to formula one. Three top teams with all of them a different approach to try to get the same result, whats not to like about that?

          • What happened with the dentist’s entry? Last I heard they couldn’t run the full season. ( I haven’t had chance to catch up with the quali this year)

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