Daily #F1 News and Comment: Friday 11th April 2014

This page will be updated throughout the day. Please if you are on Twitter press the tweet button below. If you re-write and tweet individual story headlines don’t forget to include #F1. You may not realise how hugely important this is and has helped grow our community significantly. Previously on TheJudge13 On This Day in … Read more

Caterham: Is Gascoyne leaving? NY 2013 – No, maybe.., Lauda unveils Mercedes new ‘concept’ for 2013, DRS zone altered for BIC, Ecclestone gets $400m bill

Daily News

Indian GP, Race Strategy: For a full track characteristics overview and Indian GP race strategy report, no one does it better than James Allen on his F1 News site (http://connect.jamesallenonf1.com). Includes: form guide, weather forecast, likely tyre perfomance, pit stop strategy, chance of safety car, start performance table and pit stop table plus comment from one of F1’s most experienced specialist observers.

DRS zone strategy: The FIA have made changes to the Buddh International Circuit DRS zones. As well as having the original zone that runs along the maximum distance of the start-finish straight, there is a second DRS zone that runs from Turn 3 to Turn 4 and this has been extended by 80 metres.

It appears the FIA are getting to grips with DRS zone lengths. The tracks where the racing is less exciting is where they have taken gambles on going long on the zone lengths. The extended zones this year have been predominantly after tight hairpins/very slow corners. (Canada, Valencia, Korea, India), so it could be the first zone in Abu Dhabi is also extended. If this is the case then Austin is also likely to have a fairly extensive zone on the long straight.

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Force India: How the tower of cards could collapse

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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