Latest F1 news in brief

Ross Brawn just needs to understand that Ferrari is a premium brand and is not going to let an econobox brand like Renault or Honda to tarnish its premium brand image

Brawn wants 'solution' to Ferrari quit threat
McLaren's Honda decision 'hasty' – Villadelprat
Williams: F1 needs financial controls to safeguard future
Finally, McLaren takes seat on F1 board
F1 Teams Pay $32 Million Price For Liberty's Investment Drive

Brawn wants 'solution' to Ferrari quit threat
(GMM) Ross Brawn says he will work to "find a solution" that ends Ferrari's F1 quit threat.

Brawn was once the technical boss during Ferrari's ultra-successful Michael Schumacher era, but now at Liberty Media he is vowing to improve the sport's racing, spectacle and costs.

A row between F1 owner Liberty and Sergio Marchionne resulted in the Ferrari president's post-2020 quit threat, but Brawn insists the Maranello team is "very important" to formula one.

"I worked for them for ten years and carry them in my heart still," he told Auto Motor und Sport.

"Ferrari is an icon and I hope we will find a solution that will work for everyone. A great sport is great for everyone and we do not want Ferrari to leave," Brawn added.

However, Liberty intends to even the income playing field beyond 2020 and distribute power more evenly up and down the pitlane.

"The sport should be fair to all participants, including Ferrari" he said.

"Yes it's true that Ferrari has veto rights, but to my knowledge they never used it. Perhaps they waved it around."

As for the racing, Brawn pointed to MotoGP as an example of a series that is not as fast as formula one, but is arguably more exciting.

"A MotoGP bike is 30 seconds slower but it still seems incredibly fast," he said.

"It's more important to have cars that look good and can compete against one another. Does anyone complain that the times are 15 seconds slower when it rains?" Brawn added.

McLaren's Honda decision 'hasty' – Villadelprat

Alonso wanted Honda gone and he got it. Did he make yet another major blunder in his career?

(GMM) Former F1 engineer Joan Villadelprat wonders if McLaren was right to have dumped Honda.

Already last week, when Honda's new works partner Toro Rosso topped the mileage charts in Barcelona, driver Brendon Hartley said McLaren's decision may have been a "mistake".

And now, Spanish former F1 engineer Villadelprat also doubts the wisdom of McLaren's Honda ax.

"I already had reservations last year and I still do," he told Marca.

"I thought it was a hasty change and that they would miss all the advantages. As a customer you always have limitations, especially it seems when you are with Renault.

"I think French pride will drive them to very much want to beat them (McLaren)," said Villadelprat, who worked for McLaren, Ferrari, Benetton and Prost.

He continued: "I think the McLaren is a very developed car aerodynamically, but as the year progresses, Renault will move ahead.

"They are not investing all of that money from Paris without their own ambitions."

Villadelprat said all McLaren and Fernando Alonso can realistically hope for, therefore, is fourth place behind F1's existing top three teams.

"I do not doubt that Fernando will do podiums, but further than that I think will be very difficult," he added.

And he thinks that with a more reliable and powerful Honda engine, Toro Rosso could be a surprise of 2018.

"I do not rule out that they will be together with Renault and McLaren. I know very well that they fit perfectly with Honda and they want the project to work, as does Red Bull.

"I'm sure they (Red Bull) will Take that engine in 2019 and will help in every way to develop it. Honda's potential is enormous if someone helps them to channel it," Villadelprat added.

Williams: F1 needs financial controls to safeguard future

Claire Williams – in other words give our team more money

Williams deputy team principal Claire Williams has called on Formula 1's new owners to Take control of the sport's spiraling costs in order to protect F1's long-term future.

Liberty Media has already prioritized lower costs as part of its technical blueprint of the future. But Williams called for the introduction of financial restraints such as budget caps and spending controls.

She said it was time for everyone involved "to look at the future of this sport and protect it for future generations.

"I think the fans of our sport want to see a much more competitive grid. And that can only be the outcome of a more financially balanced sport.

“That’s everybody’s responsibility around the Table," she continued. "In order to do that we believe that financial restraints have to come into play for 2021 and beyond."

Such restraints won't go down well with many of the bigger teams, who have become accustomed to spending their way to success.

“I’m pleased I’m not in charge," she admitted. "But I’m sure that everybody has what’s best for the sport at heart and not individual gain and benefit."

It means teams joining together with Liberty and the FIA – the sport's governing body – to come to an agreement.

"As people are working together then does it matter if it’s the FIA or Liberty’s responsibility?" Williams argued. "I think it’s everybody’s responsibility to come to the Table and to Talk about the future of the sport.

"It’s difficult. This sport is very political as everybody knows. We are all here to protect our teams, but we all must remember as well that we are here to protect our sport as well."

The cost of operating a team in Formula 1 is a particular concern to an independent team such as Williams, which lacks the spending power of a global manufacturer such as Ferrari, Mercedes or Renault. Williams spends around Â£120 million per year, about a third of that of the bigger teams.

"I’ve always said that spending Â£300 million a year just to get two race cars to the grid is a scary amount of money," said Williams. "And it’s not sustainable for our future. It’s certainly not sustainable for independent teams like ours.

Much of the budget goes on purchasing engine technology. But without a competitive power unit, teams might as well not even show up on race day.

"These engines are important," Williams acknowledged. "They are hybrid technology which is important for the sport to be using.

“If we were able to come up with a situation whereby we were still able to Talk to the environmental issues but to be financially conscious, I think that would be a positive outcome. And one that the sport needs."

Finally, McLaren takes seat on F1 board

Zak Brown gets a seat at the Table

McLaren has joined Ferrari and Daimler on the board of Formula One.

The Woking outfit, which is second only to Ferrari in terms of title success, was offered a place on the board of F1 back in 2012, when Bernie Ecclestone was seeking to keep the teams on board with a new Concorde Agreement.

However, while Daimler and Ferrari were quick to Take up the offer to have a director on the board, behind the scenes battles in Woking meant McLaren missed out.

"McLaren could have a director if they made their mind up." Ecclestone told the Independent in 2014, apparently referring to the fall-out in Woking between Ron Dennis, Mansour Ojeh and Mumtalakat, the Bahraini sovereign wealth fund.

Last June however, Dennis sold his 25% stake in the McLaren Technology Group, parent company to the race team, with Mumtalakat's Mohammed bin Essa Al-Khalifa replacing him in the hot seat. Once the dust had settled, Mumtalakat owned the biggest share of McLaren ahead of Ojjeh, while around 21% of the company is owned by private individuals.

Last July, it was still unclear whether McLaren would Take up the option, a source telling the Independent: "I don't think McLaren has made any decisions on it yet".

Forbes now reveals however that according to the latest filings from F1 McLaren did indeed Take up the offer with Al-Khalifa taking his place on the board, which comprises twelve members in total, alongside Sergio Marchionne and Bodo Uebber a Daimler board member.

"Each of McLaren Technology Group Limited, Daimler AG and Ferrari has exercised the relevant right and appointed a Team Director," reveal the filings.

As ever, Ferrari enjoys certain benefits not available to other board members, most notably that it can influence the removal of chief executive Chase Carey and the appointment of his successor by virtue of Sergio Marchionne being a member of the Nomination Committee of the series.

However, much like the engine rules and the current allocation of the prize pot, this comes to an end once the 2020 season is over. Pitpass

F1 Teams Pay $32 Million Price For Liberty's Investment Drive

Will this be Liberty's legacy?

Or this?

Formula One’s ten teams lost $31.8 million in prize money last year as a direct result of accelerating spending by Liberty Media in its first year of owning the series according to new research writes Christian Sylt of Forbes.

Liberty, which is listed on the Nasdaq with the ticker FWONK bought F1 for $4.6 billion in January last year. It has failed to rev up its financial performance.

Earlier this week Liberty reported that F1’s revenue in 2017 was down by 1% to $1.8 billion whilst costs surged by $47 million to $1.3 billion as a result of an ambitious expansion plan. This has involved moving F1’s headquarters into a plush new office block in London, doubling the headcount, re-branding the series and launching a street demonstrations in city centers.

Liberty is still racing ahead with its plans and just yesterday announced that it has commissioned a theme tune for F1 which is being written by Brian Tyler, composer of the scores for blockbusters including Iron Man 3 and Thor: The Dark World. It all adds up.

The reversing revenue and surging costs create a perfect storm which has driven up the red ink for F1. In 2017 it recorded a $37 million operating loss compared to a $47 million profit the previous year. As F1’s ten teams get 68% of its underlying profit as prize money, their Take reversed by $47 million to $919 million as Forbes revealed.

The higher F1’s costs, or the lower its revenue, the lower its profit and the less prize money the teams receive. Last year F1 suffered from both of these problems but one was much more under Liberty’s control than the other.

As Forbes reported, F1’s chief executive Chase Carey said that the reversing revenue was driven by a reduction in the hosting fee paid by the Brazilian Grand Prix and the loss of two sponsors, banking giant UBS and German insurer Allianz. Liberty failed to sign any new races or major new sponsors to compensate for these losses but if there is insufficient appetite in the market then it is hard to hold it responsible for this.

In contrast, the $47 million boost in F1’s spending was completely within Liberty’s control and if it hadn’t done it the teams would have received around $31.8 million more in prize money. This is because F1’s costs would have been $47 million lower which would have increased its underlying profit by the same amount and the teams receive 68% of that. It gives an average increase of $3.2 million per team but in reality four of them lost more than that as the following Table shows.

Team	Lost Money
Ferrari	$6.9M
Mercedes	$5.2M
Red Bull	$4.3M
McLaren	$3.5M
Force India	$2.7M
Williams	$2.5M
Toro Rosso	$2.2M
Renault	$1.9M
Sauber	$1.8M
Haas	$0.8M

Source:www.formulamoney.com

Certain teams lost out more than others as F1’s prize money is not divided equally. The best-paid teams are also the biggest losers when the prize money decreases. At the top of the list are Ferrari and reigning champions Mercedes which lost out to the tune of $6.9 million and $5.2 million respectively. Both have voiced concern over the direction of F1 under Liberty and have threatened to pull out when the teams’ contracts expire at the end of 2020. The fall in prize money adds fuel to the fire. More at Christian Sylt/Forbes