Ideas to cut costs in F1...
Ideas to cut costs in F1...
Author
Discussion

motormania

Original Poster:

1,143 posts

282 months

Monday 8th December 2008
quotequote all
With the depressing news we've had recently, surely there are quick and simple ways to cut the cost of F1 without a huge upheaval of the rules. My suggestion is a simple one, can be introduced at the beginning of 09 and will have a major impact on costs, although some jobs will have to go in the short term. The idea...

Ban all on-track testing throughout the year apart from two designated weeks in the off season. Turn Friday's into official test days. Why spend a fortune sending test teams to tracks, having to pay for all the backup infrastructure they need, when it's all there during a race weekend - I've never understood why they have not done it before.

flemke

23,493 posts

266 months

Monday 8th December 2008
quotequote all
There have been at least two enforced reductions in test days in recent years.
The problem was that teams then ramped up their spending on simulation.

dpbird90

5,535 posts

219 months

Monday 8th December 2008
quotequote all
motormania said:
With the depressing news we've had recently, surely there are quick and simple ways to cut the cost of F1 without a huge upheaval of the rules. My suggestion is a simple one, can be introduced at the beginning of 09 and will have a major impact on costs, although some jobs will have to go in the short term. The idea...

Ban all on-track testing throughout the year apart from two designated weeks in the off season. Turn Friday's into official test days. Why spend a fortune sending test teams to tracks, having to pay for all the backup infrastructure they need, when it's all there during a race weekend - I've never understood why they have not done it before.
The only thing there is, that the top 2 teams have their own private test tracks and therefore the ability to test their cars whenever they like, not so sure about the lower teams though...

rev-erend

21,619 posts

313 months

Monday 8th December 2008
quotequote all
Cut the drivers salarys..

FourWheelDrift

92,287 posts

313 months

Monday 8th December 2008
quotequote all
They've tried cutting costs before but the ideas never caught on. As there will always be teams with more money to spend on other areas.

The Bathtub chassis BRM, with Graham testing it at Crystal Palace, it was good downhill but struggled with inclines. Superceded by the monocoque chassis Lotus


With money an issue Bugatti tried to cut costs by making everything as small as possible, here Denny Hulme tries out the new car. It never caught on.


And Jim Clark testing Lamborghini's first Formula One car. Their cost cutting was in the design department where they just modified one of their road vehicles. They followed Bugatti's lead above but the combination of both proved unsuccessful despite Farmer Jim's brave attempts to urge some speed out of it and the employment of the Hill family to give it some.

stew-S160

8,020 posts

267 months

Monday 8th December 2008
quotequote all
stop changing the regulations every other week.
reduce the drivers salaries and some team members too. maybe pay on a performance basis.
costs of the motorhomes etc are stupidly huge. so cut them back a bit.

flemke

23,493 posts

266 months

Monday 8th December 2008
quotequote all
dpbird90 said:
motormania said:
With the depressing news we've had recently, surely there are quick and simple ways to cut the cost of F1 without a huge upheaval of the rules. My suggestion is a simple one, can be introduced at the beginning of 09 and will have a major impact on costs, although some jobs will have to go in the short term. The idea...

Ban all on-track testing throughout the year apart from two designated weeks in the off season. Turn Friday's into official test days. Why spend a fortune sending test teams to tracks, having to pay for all the backup infrastructure they need, when it's all there during a race weekend - I've never understood why they have not done it before.
The only thing there is, that the top 2 teams have their own private test tracks and therefore the ability to test their cars whenever they like, not so sure about the lower teams though...
Private test sessions count the same as grid-wide test days at Estoril, Silverstone, etc.

Fidgits

17,202 posts

258 months

Monday 8th December 2008
quotequote all
its simple.


instead of a single engine manufacturer - simply remove the engine.

stick holes in the floor and let them race 'flintstones' style - of course they can create any sort of inertia recovery system they want - so they would be able to achieving slightly higher speeds when needed.

It'd also make the drivers earn their huge salarys, after all, running for 90's mins is going to be hard work..

Spiritual_Beggar

4,833 posts

223 months

Monday 8th December 2008
quotequote all
Just stick a Development cap on all the Teams.

Set a flat fee across the board. Would make things a lot more even as well.

anonymous-user

83 months

Monday 8th December 2008
quotequote all
ban aero tunnels and make the cars test at tracks on race weekends.

stock front and rear wings to eliminate the sneaky teams testing in tunnels away from prying eyes.

engines are 3.5 litre V8 n/A or 1.5 litre turbos to encourage privateers. Max fuel allowance for race.

no driver aids.

mechanical gearchanges

no fly by wire throttles.

steering wheels with no buttons on them.

pretty much zero electronics - still works for the DFVs stil lracing in TGP?!...

FIA appointed chassis and engine supplier to be appointed to provide chassis and/or engine to encourage privateer teams.

soft slicks, hard slicks, wets and intermediates. 4 sets per event, use what ever you want whenever you want.

all this bullst about F1 being the pinnacle of motor racing has driven us to this point, its time people made a decision, either the want Gucci technology that they NEVER see hidden away in the cars engines or they want a sport?...

skinny

5,269 posts

264 months

Monday 8th December 2008
quotequote all
ban aero development. downforce is expensive and killed the decent racing anyway. then you don't need such powerful engines as drag is reduced.

then give the teams a flatter proportion of prize money so that they don't go all out trying to gain the tiniest advantage. sorted, and everyone's happy smile

oh, and every manufacturer team has to have 1 race spec chassis (plus scheduled replacement) for sale at a capped price to an independant team.

Martin Keene

11,498 posts

254 months

Monday 8th December 2008
quotequote all
The only way to cut costs in F1 is to cap budgets.

Look at it like this. you are Chief Engineer at McLaren, you have a development budget of $250m a year. The sole purpose of the team is to win the world championship, not make a profit, therefore you are going to spend $250m.

As a result you will spend the largest propotion of that $250m on the area which you believe will held the biggest gain. So lets say you spend $X on area A, which generally finds you 1/2 a second a year, and $Y on area B, which generally find you 1/4 second a year.

Suddenly, the FIA effectively ban research on A by introducing a standard part. That means you are left with a sum of money, $X, that you no longer need for research on area A.

What would you do with that money, let if go onto the bottom line in profit or pour it all into area B and start spending on area C?

Suddennly area B gets banned, top spend goes to area C and work starts on area D, etc, etc, etc...

They will not cut costs in F1 without capping budgets, the teams have the money to spend and they will spend it, by limiting the areas in which they can spend it by the rules simply means they will spend larger amounts chasing ever smaller performance increases.

Edited by Martin Keene on Monday 8th December 18:43

sniff diesel

13,125 posts

241 months

Monday 8th December 2008
quotequote all
pablo said:
ban aero tunnels and make the cars test at tracks on race weekends.

stock front and rear wings to eliminate the sneaky teams testing in tunnels away from prying eyes.

engines are 3.5 litre V8 n/A or 1.5 litre turbos to encourage privateers. Max fuel allowance for race.

no driver aids.

mechanical gearchanges

no fly by wire throttles.

steering wheels with no buttons on them.

pretty much zero electronics - still works for the DFVs stil lracing in TGP?!...

FIA appointed chassis and engine supplier to be appointed to provide chassis and/or engine to encourage privateer teams.

soft slicks, hard slicks, wets and intermediates. 4 sets per event, use what ever you want whenever you want.

all this bullst about F1 being the pinnacle of motor racing has driven us to this point, its time people made a decision, either the want Gucci technology that they NEVER see hidden away in the cars engines or they want a sport?...
1200bhp for a 3.5l NA and god knows what for the turbos, with the drivers with one hand on the wheel every couple of seconds to change gear and no driver aids and much reduced aero grip. In the rain. With Massa driving. That would be fun to watch.

DSM2

3,624 posts

229 months

Monday 8th December 2008
quotequote all
pablo said:
ban aero tunnels and make the cars test at tracks on race weekends.

stock front and rear wings to eliminate the sneaky teams testing in tunnels away from prying eyes.

engines are 3.5 litre V8 n/A or 1.5 litre turbos to encourage privateers. Max fuel allowance for race.

no driver aids.

mechanical gearchanges

no fly by wire throttles.

steering wheels with no buttons on them.

pretty much zero electronics - still works for the DFVs stil lracing in TGP?!...

FIA appointed chassis and engine supplier to be appointed to provide chassis and/or engine to encourage privateer teams.

soft slicks, hard slicks, wets and intermediates. 4 sets per event, use what ever you want whenever you want.

all this bullst about F1 being the pinnacle of motor racing has driven us to this point, its time people made a decision, either the want Gucci technology that they NEVER see hidden away in the cars engines or they want a sport?...
What you propose sounds like a poor man's World Series by Rnault, so why bother at all?

anonymous-user

83 months

Monday 8th December 2008
quotequote all
DSM2 said:
pablo said:
ban aero tunnels and make the cars test at tracks on race weekends.

stock front and rear wings to eliminate the sneaky teams testing in tunnels away from prying eyes.

engines are 3.5 litre V8 n/A or 1.5 litre turbos to encourage privateers. Max fuel allowance for race.

no driver aids.

mechanical gearchanges

no fly by wire throttles.

steering wheels with no buttons on them.

pretty much zero electronics - still works for the DFVs stil lracing in TGP?!...

FIA appointed chassis and engine supplier to provide chassis and/or engine to encourage privateer teams.

soft slicks, hard slicks, wets and intermediates. 4 sets per event, use what ever you want whenever you want.

all this bullst about F1 being the pinnacle of motor racing has driven us to this point, its time people made a decision, either the want Gucci technology that they NEVER see hidden away in the cars engines or they want a sport?...
What you propose sounds like a poor man's World Series by Rnault, so why bother at all?
because in all seriousness, its all that might be around... teams are free to develop their own chassis and engine if they want to, the chassis/engine supplier would just help boost grid numbers with off the shelf stuff. and whats so bad about renault world series that makes F1 look like the holy grail? 18 cars on the grid next year, only three with a realistic chance of winning... cant wait rolleyes

Derek Smith

49,748 posts

277 months

Monday 8th December 2008
quotequote all
The way to decrease the cost of competing in F1 is to have a world-wide recession. That's the only way. With a cap on engine development to save costs, Red Bull managed to up its budget by 22%.

Artificial plugs don't work. You could, for instance, reduced the number of team members allowed to work on the car to, say, twenty over the whole weekend and five once the 5 minutes to go board goes up. There's the wages, food, the accommodation (although, from what I've been told, little savings there), transport, insurance, training and other on costs that will be cut. Over the season of say 16 races (dependant on Bernie not banning all European and American circuits) the saving will be tremendous. Except, of course, McLaren, Ferrari, BMW, Toyota, Red Bull/Toro Rosso and Renault will spend the money they saved on other things. As pointed out earlier, it's a bit like British Leyland: the primary motive of the teams is not to make money so budget and income will, more or less, equal out.

I can't help but think that this whole sham is solely to out the manufacturers. Once they've gone the FiA will be able to divide and rule. But only, of coruse, of what's left.

SamHH

5,078 posts

245 months

Monday 8th December 2008
quotequote all
Martin Keene said:
The only way to cut costs in F1 is to cap budgets.

Look at it like this. you are Chief Engineer at McLaren, you have a development budget of $250m a year. The sole purpose of the team is to win the world championship, not make a profit, therefore you are going to spend $250m.

As a result you will spend the largest propotion of that $250m on the area which you believe will held the biggest gain. So lets say you spend $X on area A, which generally finds you 1/2 a second a year, and $Y on area B, which generally find you 1/4 second a year.

Suddenly, the FIA effectively ban research on A by introducing a standard part. That means you are left with a sum of money, $X, that you no longer need for research on area A.

What would you do with that money, let if go onto the bottom line in profit or pour it all into area B and start spending on area C?

Suddennly area B gets banned, top spend goes to area C and work starts on area D, etc, etc, etc...

They will not cut costs in F1 without capping budgets, the teams have the money to spend and they will spend it, by limiting the areas in which they can spend it by the rules simply means they will spend larger amounts chasing ever smaller performance increases.

Edited by Martin Keene on Monday 8th December 18:43
I agree that the reason F1 costs as much as it does is because that's what the participants are willing to spend. However, I think budget caps will only result in the teams hiding their spending.

rev-erend

21,619 posts

313 months

Monday 8th December 2008
quotequote all
Perhaps they should cut about 3 races off the calendar..

The amount they have added lately ..

How about remove the races with poor spectator attendance.

zac510

5,546 posts

235 months

Monday 8th December 2008
quotequote all
How about we force a worldwide recession? That oughta cut the income and in turn the costs!

flemke

23,493 posts

266 months

Monday 8th December 2008
quotequote all
rev-erend said:
Perhaps they should cut about 3 races off the calendar..

The amount they have added lately ..

How about remove the races with poor spectator attendance.
Unfortunately, that would tend to have the opposite effect.
The revenue available tends to be linear, in proportion to the # of races. The more races, the more circuit fees, the more advertising hits, the bigger broadcast packages, etc.

Although much of the expenditure in F1 is also proportionate (transport/lodging/hosting being the biggest), still a very substantial part of it is fixed: plant and equipment, design & engineering team. The huge cost of CVC's debt service is also fixed.
With fewer races, and thus proportionately less revenue, all the fixed expenses would be amortised over a smaller base, making F1 more expensive for the teams.