Site logo

Teams to receive advance on prize money

NEWS STORY
02/03/2015

It is understood that a number of teams are to be advanced their prize money in order to overcome cash-flow problems.

Unsurprisingly, it is the three teams, Force India, Lotus and Sauber, who were most vocal about the chasm between the sport's haves and have-nots at the end of 2014.

As Caterham and Marussia appeared to be in their death throes, the three teams warned they too were far from safe and amidst calls for changes to the sport including the allocation of prize money and limiting spending, there was talk (subsequently denied) of one of more teams boycotting events in protest.

Now, with the season opener just two weeks away, at a meeting with Bernie Ecclestone last week, the F1 supremo agreed to advance each team around $10m. The payment, which it is understood, will be made by the end of this week, is to ensure they can line up on the grid in Melbourne.

Which, of course, raises the question, how did it get to this?

What if Ecclestone had refused to advance the money, would the teams have headed to Cash Converters?

Furthermore, the money is to ensure they are on the grid in Melbourne, what about beyond that, are we facing a season where teams, like Marussia and Caterham in 2014, will miss races, picking and choosing which events it is worth attending.

Force India has said that its financial situation was exacerbated by cash-flow - or lack of it - this being a particularly bad time of the year. The Silverstone outfit's situation not helped by suppliers, alarmed by the failures of Caterham and Marussia, and its own financial situation, wanting payment for goods and services up front.

Whilst many are getting excited about the return of Marussia, Pitpass sources claim there remains a large question mark over its prize money for 2014, money the new owners are banking on.

Sadly, this is a situation that some have been warning about for some time however, the powers that be and the sport's richer teams have chosen to ignore it.

Despite some great racing in 2014 and the sport's flawless adaption to a whole raft of new rules, audience figures (live and on TV) took a dive.

With Mercedes looking set to dominate again this season, this will further impact viewing figures, and though the teams are raking in the money from the various new pay-per-view TV deals Ecclestone is arranging all over the globe, another drop in audience figures will impact sponsorship deals... existing and potential. Indeed, look at some of the cars on the Melbourne grid (no names) and you'll see that this is already an issue.

Not for the first time the sport has failed to look at the long term.

LATEST NEWS

more news >

RELATED ARTICLES

LATEST IMAGES

galleries >

  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images

POST A COMMENT

or Register for a Pitpass ID to have your say

Please note that all posts are reactively moderated and must adhere to the site's posting rules and etiquette.

Post your comment

READERS COMMENTS

 

1. Posted by Pipsary, 04/03/2015 18:50

"F1 need's to keep the paying public interested to make it work to be honest! advancing money to the the teams maybe good for each team but when prices keep going up to attend races or making people pay to watch all the races on Sky then the only driving that is going on is "Driving the paying public and the F1 audience away" "

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

2. Posted by Vinicius, 04/03/2015 17:01

"Well, advancing prize money is quite worrying, because in the future that teams will have no money at all to invest. That kind of thing happened in brazilian soccer with the TV advancing the prizes, then cutting that. Teams were forced to sell the expensive players and had to renegotiate debts with the government, which in Brazil is too kind, but in Europe would never happened."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

3. Posted by Hondawho?, 02/03/2015 11:35

""Not for the first time the sport has failed to look at the long term."

Possibly the reason for this is that, maybe "there is no long term". I have said many times on here, the sport is heading towards the end of the BE reign and quite honestly to the onlookers it looks as if the commercial rights holders, who, quite possibly can no longer sell it or find a mug to buy it will rape it it as long as BE is there. When he is not then who knows what the long term may hold, as I said, if indeed there is one.

What can be done in this sport has been done, very little remains other than to make the cars fly, so the talk. if I am right, is to look at "how it was done in the past" to make it more attractive.

Only one thing happens when you go backwards, it means at this time, there is nothing left to go forwards, well unless F1 joins Formula E perhaps, or the hadron collider provides us with an engine that is so fast the cars go to the moon and back as one lap!

What more can be said really?

"

Rating: Positive (1)     Rate comment: Positive | NegativeReport this comment

Share this page

X

Copyright © Pitpass 2002 - 2019. All rights reserved.

about us  |  advertise  |  contact  |  privacy & security  |  rss  |  terms