F1 Bond

[muzzer79]

Was talking with Mrs Muzzer yesterday about the delights of Formula One as we know it and were wondering about the Bond you currently have to produce.

Under the current Concorde agreement, you have to post $48 million in order to set up a new team. We were wondering what happens to that money..

Does it just sit in an account?! (If so, someone has a rather large amount of interest coming in) Or is it something you just have to prove you have?

If you have to hand it over I presume you get it back, therefore Eddie Jordan/Paul Stoddart had and nice little cash windfall back when they left the circuit!

Possibly an obvious answer but was just wondering

[FourWheelDrift]

I think it's given back, not sure how or when though the Bank of Bernie has strange opening hours From 2008 the bond will no longer be needed for teams to enter.

[stew-typeR]

from what i remember, the $48mil gets paid back to the teams over a period of years. its an incentive to stay in the sport sort of.

>> Edited by stew-typeR on Wednesday 24th May 10:48

[Marki]

stew-typeR said:

from what i remember, the $48mil gets paid back to the teams over a period of times. its an incentive to stay in the sport sort of.

What so the incentive is that he gives you back your own money good old Bernie his heart is in the right place and no misstake

[stew-typeR]

well the $48mil is a joining fee. like i said, from what i remember, it gets paid back over/after a few years. if a team was to leave after a season or two, they get none back.
also means anyone wanting to join F1 could buy a struggling team instead.

[Eric Mc]

Did well established teams have to pay this bond when it was introduced or was it for new entrants only?

Jordan came into F1 in 1991 and I don't think the bond existed back then.

[Mr Beckerman]

Eric Mc said:

Did well established teams have to pay this bond when it was introduced or was it for new entrants only? Jordan came into F1 in 1991 and I don't think the bond existed back then.

Quite right, recently introduced I believe.

Remember, Jordan had to pre-qualify in 1991 just to take part in the race weekend, so there was no shortage of teams wanting to partake.

I think it was introduced about 5 or 6 years ago, so Toyota and Super Aguri had to pay it, but Red Bull didn't as that was effectively just a team name change. It gets drip fed back to them so that they have a known source of income over the first few years.