Could the credit crisis affect F1?
According to an exclusive analysis by Autosport magazine, Formula 1 team directors claimed that the sport could be affected by the so-called credit crisis. The annual revenue of F1 is estimated to be nearly 4 billion dollars, and some people fear that the sport might be the next victim of a financial crisis. This is […]
According to an exclusive analysis by Autosport magazine, Formula 1 team directors claimed that the sport could be affected by the so-called credit crisis.
The annual revenue of F1 is estimated to be nearly 4 billion dollars, and some people fear that the sport might be the next victim of a financial crisis. This is particularly concerning as there is increasing talk of an upcoming economic recession in certain parts of the world.
The collapse of the Super-Aguri team at the start of the season is proof that F1 teams are facing difficult budgetary conditions. It is certainly important to be cautious with money, but some teams believe that this wave of panic is not justified.
Frank Williams stated that his team’s financial situation is better than when the first signs of the credit crisis surfaced a year ago.
He also believes that the crisis will not become global and that while Western countries suffer during this period of reduced financial resources, developing countries like China will continue to grow rapidly and see their economies prosper.
« The actors in the F1 world are more cautious, but the world is bigger. Many people still have a special relationship with money, hence the need to sell products. »
Toyota Racing President John Howett added that even if some sponsors are affected by this crisis, there are investments that can be made in other areas.
« If there is an economic recession, it will be more difficult to obtain rewards from these sponsors, but the current global situation means that you have new companies expanding, » he explained.
« At present, energy and steel are massive enterprises generating profits due to economic growth in China. It is necessary to find people who wish to expand their appeal and brand awareness, that is, who have the resources available for sponsorship. »
Historically, there have always been sponsors even during previous economic recessions. It will be more difficult, but I don’t believe that in F1 the situation is any worse than in any other sport.
