Sunday 26 October 2014

Finances, Failures and the Future of Formula 1

Formula 1 is in trouble. Quite apart from the appalling (if freak) accident that befell Jules Bianchi at Suzuka, the absence of Bianchi’s Marussia team and back-of-the-grid rivals Caterham from the forthcoming US and Brazilian Grand Prix is symptomatic of a deepening crisis. Both teams sadly look doomed; very few, if any, teams have missed races for financial reasons and survived - the examples of Arrows, Super Aguri and Forti attest to that.

Mention of those names from the past demonstrates that this isn’t a new problem for the sport. There were only twenty regular Formula 1 entries for much of the last decade, and smaller teams like Jordan and Minardi had to rely on wealthy buyers in order to survive. With manufacturers like Honda, Toyota and BMW falling by the wayside in the midst of the global financial crisis, the field only expanded significantly in 2010 when four teams had entries accepted on the basis of lower cost regulations which eventually failed to materialise. Of these, US F1 never even finished their car, while HRT struggled for three years and, after a change in ownership, went bankrupt at the end of 2012. Caterham and Marussia are the other two of course, and have had their own changes in name and ownership since.

Sad thought the probable demise of both teams is, in particular for the staff affected, four cars missing from the rear of the field is unlikely to bother the casual observer all that much. But other teams are struggling – Sauber are reportedly in crisis, and the sheer number of (presumably paying) test drivers on their books is a worrying sign. Lotus have had financial problems in the past, and should Pastor Maldonado’s Venezuelan backers ever tire of bankrolling his tour of the world’s Armco barriers one must assume that they too would struggle to survive.

Suddenly we’d be down to fourteen cars, and who’s to say Red Bull will stick around indefinitely if F1’s health deteriorated, especially given their past success. If Red Bull went, they’d take Toro Rosso and presumably Renault as engine makers with them, leaving us with a ‘core’ of teams historically associated with Formula 1 – Ferrari, Williams and McLaren – as well as Force India (who as a privateer team will always be vulnerable) and Mercedes (whose entry is presumably subject to the whims of the Stuttgart board).

That’s not to say that other parties aren’t interested in bolstering what could become a very thin field. NASCAR entrant Gene Haas is pressing ahead with his plans for a new American team in 2016, while speculation that Audi want to get involved in F1 refuses to go away, though it has to be said that such rumours have been floating around for some years.

And who knows, maybe a buyer or additional backers will be found to allow one or both of Marussia or Caterham to complete the season. It’s pretty ironic that Marussia are due substantial financial bonuses for 2015 should they do so, thanks to the two precious points scored by Bianchi in Monaco, though given the events of Suzuka it would be understandable if the team felt unable or unwilling to continue.

But things clearly need to change in the future as too many teams are on or over the poverty line at present. Quite how a sport which is so obsessed with money and glamour fails to have a prize money structure that sustains the smaller teams is a mystery. Look across the Atlantic at NASCAR and you’ll see a series that attracts 43 (or more) cars every weekend, and provides generous enough reward for simply starting a race that a culture of “start and park” entries has developed.

While this is hardly a desirable scenario, and admittedly NASCAR is largely a spec series, this raises a case for customer cars being revisited in Formula 1 in order to encourage more entries. Formula 1 itself had 39 entries for the 1989 season, thanks largely to the wide availability of normally aspirated customer Cosworth engines after the ban on turbos (another irony given this season’s new engine rules).

Looking to other series, as well as into the past, could therefore result in rule changes such more generous prize money (with less going directly into Bernie’s pocket), customer cars (or at least parts), and a cost cap (perhaps even incorporating a baseball-style ‘luxury tax’), and these measures would undoubtedly help to sustain and even enhance F1’s entry list in the future.

In the meantime however, it now seems likely that some existing teams will be asked to run three cars to increase the number of cars on the grid. It has to be said that this could throw up some interesting scenarios and intra-team battles, but I for one (as well as many team bosses) would prefer the variety that eleven teams on the grid provides, and the excitement of the smaller teams managing giant-killing feats and young drivers proving their worth in lesser machinery. As a staunch supporter of the underdog I hope that those days haven’t gone forever, but I’m starting to wonder about the future of not only the small teams, but Formula 1 as a whole.