Is buying an F1 team and investment or 'financial planning'...?

[wnut]

Originally Posted by chillibowl

possible.

in that article about Genii and Lopez (perhaps from another thread) it says Lopez is a car nut.

in the article he also alludes to the low level of debt the Lotus team has. from what i understood what he was suggesting was that based on the market value of the team there was still room to borrow a few hundred million more.

if they now borrow against the team and then use those loans to buy up other more marketable assets like real estate then despite whatever losses they might be making with the team in the short run the potential for profit in the future may be more.

anyways i cant presume to know what they are up too. the only thing that is clear to me is that they are playing a very different game then the one i understand.

Now you add overseas marketing expenditure to the mix and find that you can deduct "expenses" incurred at up to 200% of what was incurred, that is the purchased loss and financing charges of the debt you loaded the team with above to buy local assets.
F1 is really not a bad deal really!

[chillibowl]

saw this on reddit today.

perhaps a bit of relevance for a another thread as well but really its just a great video of an owner who is really proud for his team.

https://www.youtube.com/watch?v=EfxeomOTddM

[mattthompson79]

Originally Posted by Casper

You made it exactly as you meant to, a wealthy parent giving money to a son to go racing. If you did not mean that why infer that he used his Dad's bank account? There is no fallacy, it takes money to get to the top and if the person does not have it or can get it then that person misses out. It has been that way since car racing evolved and in the pre-war period it was the mostly the wealthy that raced and no one thought that was an issue. The real fallacy is that just because the driver has talent he deserves to be a world champion or at least in a series such as F1 with no effort on his or her part to finance that journey and it should be given to them on a platter.

It's rather a debate about capitalism than F1! Rich people will always be able to buy advantage in whatever direction they turn their attention. Whether that's fair or not, it's the world we live in.

On an F1 level, it is unfair, but again that's life. For all I know, I may well have the driving ability of Ayrton Senna, never get to find out because Dad couldn't have afforded to put me through karts. He wasn't much interested in motorsport either, but that's by the by!

It's a long time since a driver got into F1 on ability alone rather than without money behind him.

[Casper]

Originally Posted by mattthompson79

For all I know, I may well have the driving ability of Ayrton Senna, never get to find out because Dad couldn't have afforded to put me through karts. He wasn't much interested in motorsport either, but that's by the by!

I'll be your manager if you can organise the money and drive quick.

I reckon managers have got the best gig, no effort or risk and rake the money in.

[davyboy]

Originally Posted by Casper

I reckon managers have got the best gig, no effort or risk and rake the money in.

Exactly... reminds me of the movie agent talking about his actor "You see that guy over there. He takes 90% of everything I earn"

[Neil Duke]

Originally Posted by Casper

You made it exactly as you meant to, a wealthy parent giving money to a son to go racing. If you did not mean that why infer that he used his Dad's bank account? There is no fallacy, it takes money to get to the top and if the person does not have it or can get it then that person misses out. It has been that way since car racing evolved and in the pre-war period it was the mostly the wealthy that raced and no one thought that was an issue. The real fallacy is that just because the driver has talent he deserves to be a world champion or at least in a series such as F1 with no effort on his or her part to finance that journey and it should be given to them on a platter.

& it was ever the same.

[mattthompson79]

Originally Posted by Casper

I'll be your manager if you can organise the money and drive quick.



I reckon managers have got the best gig, no effort or risk and rake the money in.

Haha, it's a deal. I might be able to stretch to a mini metro but I'm sure we'll make it go quick!!