Indian GP

BIC promoters only expecting half a crowd, Kingfisher employees to disrupt F1, Discord not Concorde in Paris, 1st Lap of COTA more F1 News

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FIA meeting today: Press release 18:05 GMT – “During a constructive meeting, Jean Todt, the FIA President, in co-operation with Bernie Ecclestone, the Commercial Rights Holder, has presented to all F1 Team Principals the new structure of governance, including the new conditions of entry for the Concorde Agreement, starting in 2013. All the participants in the meeting were encouraged to seek clarification which resulted in a fruitful and helpful debate on how the new structure would operate in 2013 and beyond. A further important step has been achieved today to secure the future of the F1 World Championship which should lead to a final settlement to be reached between the FIA, the Commercial Rights Holder and the Teams in the coming weeks. (FIA.com)

On the agenda. The FIA is insisting on only 6 teams, Ferrari, Red Bull, McLaren, Mercedes, Williams and Lotus to be part of the F1 Commision going forward. There were clarifications requested by the teams on the definition of customer cars and particularly the provision of 2014 engines. Renault has refused to increase the number of customers it supplies engines and with Cosworth up for sale this leaves Marrusia and HRT possibly without engines. Renault are objecting to the lack of competitiveness of these teams car designs, saying it is bad for their brand. A solution mooted is for them to buy a customer car from a larger team and then have an engine supplied.

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Massa honoured as Buddh InternationaI Circuit (BIC) name a kerb after him

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It appears Felipe Massa had an impact on the BIC, beyond anything he could have imagines when he retired from the inaugural 2011 Indian GP with broken left suspension after hitting a kerb. Some drivers have corners or grandstands named after them but it appears the first kerb in F1 to be named will be the new ‘Massa kerb’ at turn 8, says the BIC.

Its fascinating when F1 returns to a new circuit for the first time following its inaugural event. All kinds of snagging is required after the first race and no wonder when the entire facility is often only finally completed a couple of weeks before the F1 circus arrives.

Korea was no exception. The pit lane entrance and exit were so badly conceived by Tilke that for year 2 the FIA took an unprecidented step by deploying a set of traffic lights at the exit of the pit lane to prevent cars re-joining the track in the path of others approaching turn 1 at high-speed. The pit lane entrance was also redesigned because the final turn was a blind apex, taken flat out but the problem was the drivers couldn’t see in advance those cars slowing to enter the pit lane – a highly dangerous situation. For year 2 the entrance was moved but even this wasn’t sufficient and prior to this years event the final corner was flattened to give better visibility for the drivers as the entered the curve.

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Force India: How the tower of cards could collapse

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Over the past few days I’ve been asked many times and seen people enquiring on various F1 websites as to how much is an F1 team worth. Of course the answer is simple, different teams are worth vastly different amounts. An F1 team is a business venture – registered with a legal identity independent of any rich owner and subject to the business regulations from the statutory authority where they are registered.

 Valuing a business

The way business ventures are valued is highly complex and sector/performance specific. There was old 3 times profit rule that was a fundamental when I studied Finance many years ago. Yet even this most simplistic valuation methodology is fraught with danger when you dig deeper. Is that profit before or after asset depreciation, asset goodwill, taxation, one off accounting entries of substance – I could go on..and on..and on…

I guess my favourite methodology which can be proved beyond doubt and its an old adage, which says “The value of something is best measured by how much someone is actually prepared to.”

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