Formula 1

Money makes the world go round but is F1 just a “hole in the ground”? – Steiner

1 Mins read

From talking to various people in the racing industry, like most sport now it is revolved around one thing that most of us cannot live without and that is MONEY. Our love for sport is one factor but money is the factor that covers everything. Without money there is no love because there is no sport.

But where does this line stop?

Haas Formula 1 boss Guenther Stenier says that the sport has to make sense in order for team owners to continue to inverst and not to become a “hole in the ground” for continued spending.

The current pandemic has put a focus on all the teams financial situations, and especially those with the smaller outfits that are backed by wealthy individuals like Gene Haas.

Teams have been having discussions with the FIA and F1 bosses about a reduced cap cost from 2021 which means that this would give the smaller outfits more motivation to stay on, as it would close the performance gap to the big players. However thus far no agreement has been reached.

Zac Brown, Mclaren CEO warned that three or four teams may not survive into the next season unless appropriate measures are taken.

No teams have signed the new Concorde Agreement, and thus none are committed to participating from 2021.

Steiner says that unless the outlook improves he can’t expect Haas Automation to continue to bank roll the team.

Steiner told Motorsport.com,“I hope that at some stage this could be a break even business because that’s what is should be.”

“Not only to invest, because at some stage, everybody’s tired to invest,” he continued.

“We need to try to make a business out of it, and not an investment business with no return. If I wouldn’t be hopeful that we can achieve it I would say to Gene, ‘Don’t do it”, because otherwise I would be lying to him.”

23 posts

About author
English and Journalism Graduate
Articles
Related posts
Formula 1

Max Verstappen: “The penalty is of course not ideal but nothing is lost”

3 Mins read
Max Verstappen is aiming to end Mercedes’ unbroken streak of wins in Sochi this weekend despite a three-place grid penalty for his collision with Lewis Hamilton in Italy.
Formula 1

Mercedes' Toto Wolff: "Both our drivers have enjoyed great results in Sochi"

2 Mins read
Mercedes appear to have a competitive car at this point of the season, much to the delight of Team Principal Toto Wolff as they go all out to win another Drivers’ and Constructors’ Championship double.
Formula 1

Mclaren to run historic F1 cars at brand new Velocity Invitational

2 Mins read
Mclaren Racing to run an array of historic Formula 1 cars at the brand new Velocity Invitational in November this year at the famous WeatherTech Raceway Laguna Seca.