(Sahara Force India Formula One Team)
Formula One is facing an uncertain future following the news
in the last week that both the Caterham and Marussia F1 Teams have entered
administration. It was not a surprise to see the two teams forced into this
situation as they have struggled to compete since they entered Formula One in
2010.
Formula One welcomed three new teams into the sport in 2010,
with Virgin Racing, the Hispania Racing Team and what was then the Lotus Racing
team. The Hispania Racing Team were the first team to after folding following
the conclusion of the 2012 Formula One season.
In 2012, the Lotus Renault team was renamed the Caterham F1
Team as team founder Tony Fernandes bought the Caterham car company and renamed
the team.
After initial funding from Richard Branson’s Virgin Group
the Banbury based team was sold to the Russian car company Marussia and was
rebranded the Marussia F1 Team in 2012. Following the collapse of the Marussia
car company in April 2014, the Formula One team which was a separate entity to
the car company continued to trade and compete in Formula One.
In the last five seasons of Formula One four teams have
collapsed with Super Aguri Honda, the Hispania Racing Team, Marussia and
Caterham all forced out of the sport due to the mounting costs involved in
running a team.
Super Aguri entered Formula One in 2006 running what was effectively a Honda B team as they were racing with the 2005 Honda chassis and
were receiving a Honda engine.
This season as a result of winning the Constructors
championship the Mercedes AMG PETRONAS F1 Team can expect to receive in the
region of £100 million compared to the Marussia F1 Team who if they retain 9th
place in the championship can expect to receive in the region of £40 million.
It is about time that Formula One embraced a system similar
to the financial fair play system in operation in Football.
The Sport already has a Research Restriction Agreement in
place amongst the teams and it would be very easy for a budget cap to be put in
place of say between £60 - £80 million which if a team were to go over that
during a season they could receive a sporting penalty or a a reduced share of
the team rights money.
Formula One generates an annual revenue of over £! Billion a
year from global ticket sales and TV rights however the money is not divided
equally among the teams in the sport.
There is a three level system in place in
the sport at the moment where in 2014 you have the top teams of
Mercedes
Infiniti Red Bull Racing
Williams Martini Racing
Ferrari
Then there are the midfield teams of
McLaren Mercedes
Sahara Force India
Lotus
Toro Rosso
While you have Sauber, Caterham and Marussia at the back.
However it is now just nine teams on the grid with Caterham and Marussia
missing from the field this weekend.
We very nearly had the Sahara Force India
Formula One team on the side-lines for the United States Grand Prix in Austin
as they had problems with power unit supplier Mercedes in relation to money
however that was sorted out at the last minute and the team are in Austin this
weekend.
The Lotus F1 Team and the Sauber F1 Team have also struggled
financially in recent times and where a number of years ago they would have
been able to attract big money sponsors this is no longer the case.
The last major sponsorship deals to be concluded in Formula
were earlier this season when the Williams team announced a new long term title
sponsorship agreement with Martini which has seen the Grove based outfit
renamed Williams Martini Racing.
While the Sahara Force India Formula One team concluded a
sponsorship deal with Smirnoff. The Silverstone based outfit have also just
this week announced a digital partnership with Accelerate which will build and
maintain a brand new website for the team.
It is time for Formula One and the governing body to unite
and come up with a solution to the financial problems facing the sport before
we lose another team. Formula One in its current form is unsustainable.
© Ben Johnston 2014
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