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Old 25 Jan 2009, 10:22   #1
Kiwi3
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Series financial security

It turns out there were financial issues getting the cars to NZ. You have to wonder why the freight from Malaysia was "horendous", as surely freight logistics should be worked out well in advance and not planned round to round.

http://www.stuff.co.nz/stuff/4828803a1823.html

Hopefully these issues will soon be resolved however, with the news that potential investors should be announced soon. I guess the idea that there are only a few weeks to get through might explain why Giltrap and others might have pitched in, better to fork out a bit more now to keep the current serious going than lose everything...

http://www.nzherald.co.nz/sport/news...ectid=10553472

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Old 25 Jan 2009, 11:44   #2
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This is an interesting one as A1GP has built a good reputation over its first four years for competitive racing and, almost more important, allowing a number of drivers an opportunity they realistically couldn't get anywhere else in the rest of the sport.

I've watched it from the first beginnings with some occasional insights behind the scenes and, however I view it, I find it difficult to see how it can ever become really profitable and justify the huge amounts of money invested into the Series and its teams, though I can image the team principles finding it a good way of focussing their global clients attention wherever it goes.

Particularly now it must be extremely difficult to raise proper sponsorship for the teams from anything other than global businesses without the level of TV coverage and general hype built up over decades by F1, also apparently desperately cost cutting to stay in business now.

A1 also uncovers the enormous costs involved in shipping a whole grid and all the back up equipment round the world which generally keeps racing on this logistical scale down to a very few major Championships, let alone the personnel. On the other hand that's also one of its significant advantages compared to Series on just one continent as its format does have a lot of merit in pitting country against country and it's been great to see some less expected countries getting good results from time to time.

I really hope this does succeed - after all, who knows - if there's a sudden exit of motor manufacturers out of F1, where will that find replacement money and engines now in keeping with the long term style of being the best and most innovative category in the World? Maybe A1GP are in the right place to take up some slack if this ever occurs.

I see that Williams have already admitted that, without the drastic cost cuts imposed by the FIA, they could have been struggling. (yet contrast that with the huge added costs of trying to develop KERS!) I do hope not as Frank and his Team have been an inspiration to countless others in the way they have come back from disasters and won again and again throughout their history.

I will await the outcome of AlGP's search for yet more fresh money with great interest and sincerely hope that, this time, this and their business plan can come together for them to reach economic stability and be with us for a long time to come.
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Old 25 Jan 2009, 18:23   #3
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I hope it carries on as well I have attended all three races at Brands which were very enjoyable however I have heard through the grapevine that if no new investment is found the series is sadly on borrowed time.
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Old 25 Jan 2009, 20:18   #4
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strider has a real shot at the championship!strider has a real shot at the championship!strider has a real shot at the championship!strider has a real shot at the championship!strider has a real shot at the championship!strider has a real shot at the championship!
I hope the Series continues, too, but it is definitely in need of renewed financial backing. Basically it's a good concept and a good package, but the costs will have increased dramatically with Ferrari's involvement.

The trouble is that this is the worst possible time in recent years for such a thing to happen, so I hope Colin Giltrap's optimism is justified and good on him and others for underwriting Taupo. It may not have been the greatest meeting, but it was vital that it should take place.
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Old 25 Jan 2009, 22:57   #5
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I also hope the series will continue but i think they were already a long way in the red before the current financial crisis hit so they must be really struggling now
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Old 26 Jan 2009, 09:35   #6
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A1GP have struggled this far, but they have not thrown in the towel yet. Gutsy.

Many teams lack sponsorship and are struggling on their own. There is no news of Team Pakistan so far this season. Any updates on Team Pk?
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Old 26 Jan 2009, 09:47   #7
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Pakistan will be back for Kyalami
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Old 26 Jan 2009, 10:10   #8
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Quote:
Originally Posted by Tyrrell
Pakistan will be back for Kyalami
Source?
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Old 26 Jan 2009, 18:46   #9
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rychard has a lot of promise if they can keep it on the circuit!
So is the freight and all that goes with it paid for the cars to get to Kyalami or was it only paid to get them to NZ?
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Old 27 Jan 2009, 01:14   #10
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I don't think they are maximising the revenue at the track. They only team merchandise in the official tent were caps, T-shirts & polo shirts & some lines were out of stock by Sunday at Taupo. There are plenty of other things that should be for sale like panama hats, sweatshirts, fleecies, key rings etc. What about mascots? The only replica car I saw was the NZ car (although if you bashed all the wings off & made it so the wheels didn't go around it might pass for the Monaco car ).

Non-NZ hats were going for $10! How can they be making money at that price? Also, wouldn't you expect there to be gear with the Ferrari logo that they could charge premium $ for?

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Old 27 Jan 2009, 02:30   #11
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It's a good question...when the Ferrari announcement was originally made over a year ago it also covered merchandise. I was hoping to see A1GP merchandise appear in Ferrari shops and dealerships, but nothing.

Perhaps it is a matter of priorities, A1GP has a number of challenges to get through already and perhaps there is not the large fan base yet that would make merchandise really profitable.

By the way excellent interview with Pete da Silva on the autosport website today. I like his balanced take on things and honesty about some regrets (Mugello and Chengdu). You'd never hear that from Tony T...but I have a lot of respect for da Silva after reading this.

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Old 27 Jan 2009, 08:42   #12
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Pakistan's official website has a news article saying they plan to be back at Kyalami.
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Old 27 Jan 2009, 08:51   #13
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And yes, I just read PdS's interview - he sounds really confident which, in turn, makes me feel confident too over the future.

All A1 really needs is investment, and it sounds like that should be forthcoming - if they get that, I think more races and teams will follow, promotion and PR should improve and the series will be very good indeed as the concept is really good and the race weekends are always excellent.

Call me over-optimistic but that's what I'm hoping for.
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Old 27 Jan 2009, 10:19   #14
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New series sponsor to be announced in the next couple of weeks.

http://www.radiosport.co.nz/SportsNe...aspx?id=151560

http://www.newstalkzb.co.nz/audio2/27050440.wma
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Old 27 Jan 2009, 12:30   #15
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Still, they should always strive at improving management and operations. I hope the fresh injection isn't cause for complacency. It is said that there are a lot of areas that can be improved on in A1GPs management.
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