The end of F1 as we know it?

Super Tourer · 26 Oct 2001, 07:58 (Ref:165680)

With the global economy heading towards recession, and many big name brands shedding thousands of jobs along with some much fancied high tech companies losing up to 98% of their share value. Where will the funding for F1 teams come from?

Ironically it was the telecoms and IT brands that were supposed to be the 'new' sponsors filling the gaps that will be left by the tobacco companies when they are forced to leave F1. But with brands like Marconi and Ericsson losing millions and painting an even bleaker outlook for their sector this looks increasingly unlikely.

With many F1 teams having thrown their lot in with the car makers, a recession led down turn in car sales could see them re-evaluate the importance of F1 to their business. Ron Dennis has already intimated that some of their 'partners' and re-considering their investment in F1.

Will we see a massive cost cutting exercise in F1 and could this be the pre-cursor to a more level playing field. Prost GP is just the tip of the iceberg, we already know that BAR has massively overspent on F1 and its bank loan has to be allegedly guaranteed by BAT. Its search for other sponsors (a request instigated by BAT) has produced nothing.

The next couple of years could prove a turning point in F1. IMHO

racer69 · 26 Oct 2001, 10:46 (Ref:165728)

It seems bad now but they were saying the same thing this time 10 years ago that F1 would be in trouble and everything. There is enough money floating around F1 that if too many teams looked like dropping Bernie could save them.

**Bononi** · 26 Oct 2001, 11:16 (Ref:165742)

As I'm concerned with the global economy suffering for 2 years, I think F1 will be Ok...

timbo2001 · 26 Oct 2001, 12:09 (Ref:165777)

If it does happen, maybe it will do F1 some good. as you say, bring everyone to a more level playing field. but as murray always used to say "In F1 anything can happen!"

paulzinho · 26 Oct 2001, 13:10 (Ref:165828)

"... and it usually does!!!"

**Stephen Green** · 26 Oct 2001, 13:58 (Ref:165843)

Well I think the global slowdown is going to last for about 5 years and so it will have an impact on Formula 1. Lets not forget however that many of the sponsorship deals are for 3 year periods, sometimes longer, and so in many cases there will be at least a year or two to run before the deals expire. As always in life, one business's slowdown is anothers rise to fame.

I agree that the 'tech' companies that have come into F1 over the past couple of years are going through a really hard time, but you have to remember the meteoric rise in their share prices in the preceeding period! Looking at the longer term, they will still form the basis of much of the sponsorship deals in motorsport as well as other sporting arenas.