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Old 22 Mar 2020, 21:40 (Ref:3966160)   #1
Moneyseeker
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OK, so where do we go from here?

To me it looks like FOM have lost control of the F1 calendar, Coronaviruns is a fast moving global situation. Countries that are already trying to manage it and save ther econony have enough on their plate to worry about F1. Countries that either don't have the virus or limited infections so far, don't want global sport to come in and potentially bring it with them. FOM (IMO) has nowhere to go with this.

Another thing in play, is that neither FOM or the FIA from F1's side are deciding the calendar either. In Australia it wasn't FOM or the FIA calling the shots, they would have gone anead, it was the teams or more precisely the manufacturers. Allegedly Toto Wolff changed his mind after speaking to Daimer, Ferrari didn't want to run ( which would mean no engines for their customers) and allegdly Honda, after consulting with Tokyo, had packed their kit before informing Red Bull they would not be supplying engines for the race.

FOM could put whatever calendar they like before the teams, but it doesn't mean they will go and if the manufacturers don't go, their engines for customer stay in the crate as well.

What does all this mean for F1? IMO F1 faces an existential crisis, I think certainly Mercedes, Honda and Renault will exit at the end of 2020. We have seen this all before, when their is a global crisis (and Coronavirus is bigger than the financial crash or previous recessions, manufacturers understandably retreat to ther core business which is already facing the perfect storm of emission targets and the transition to EV which is costing billions.

Aside from the tragic human cost, the major economies of the world face a combined trillions of dollars in healthcare, bailouts, personal and business sitmulus, there will be no money for F1 regardless of whatever bits of paper are signed. Look at F1 sponsors, how many Rolex watches do we think they are selling in the locked down prime cities of the World? Today they are literally boarding up the shop fronts of some of the luxury brands in London's west end. How much freight will DHL ship world wide - they are I believe one of the biggest car parts shipper world wide - car manufacturers have shut down their factories.

When this is all over, the world should and IMO will be a different place. Financially the bill will be picked up for decades and it will be the wealthy, the corporation and car makers picking up a large share of this in taxes.

A for the teams, proze money will be decimated, Claire Williams is already fretting about this and they finished last in the WCC for the last 2 years, so will hardly have earnt any performance based prize money.

I have followed F1 since 1980, I have seen it ebb and flow, but nothing like this, F1 has not seen this in 70 years. Probably a teams like Williams paying over 600 people to put 2 cars on the grid for 20 race will be seen as ludicrous, the manufactuer budgets more so. It has been effectively unsutainable for the last 10 years, to their credit Liberty saw this and are trying to confront it in 2021, but it may be too little too late.

We are in unchartered territory, we have had dramas in the past, car makers have left, but back in the golden era BE always had a government or unaccountable 'regime' to pitch F1 to. There was always a luxury brand that wanted the halo F1 effect. But never before have we seen car makers, global econpmies and the usually resiliant luxury brands hit at the same time.

Who else will pay for F1? Can Liberty survive 2020 as the rights holder with the prospect of refunding half the ( or more) of the F1 race promoters, sponsors and TV rights?

Unprecedented and fascinating times.

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