|
Contrary to all of the doom and gloom apocalyptic news headlines, you have to think that the new F1 business model is starting to make more sense, as in the Pre-JeanTodt days. The Piranha Club used to actually make money. Even Eddie Jordan could somehow make things work for a time. As in those days, the costs will be brought down to a level within reach of sponsorship support.
IF Williams is able to somehow find bridge capital, then they will survive. It seems that McLaren will have to downsize to survive, as well as find around 200M to stay afloat until either sponsorship money arrives, or car production resumes. I think they can do it. Even the British government has an interest in making sure that McLaren do not vanish.
On The Other Hand:
The prize money from racing will be non-existent if there is no spectators, correct? Or are they divvying up TV rights money?
The glam parties will go away. The hospitality 'motorhome' palaces will go away. No more grid girls. And the Jean Todt experiment of selling Tech to environmentalists (dumb idea) and tech nerds (even dumber idea) is over. It was too expensive and there is no market for that.
What no one realizes about Bernie E, is that he is the world's greatest salesman. He found a niche, realized that there was a market among the world's elite wealthy for a travelling global party. The car races were sort of the backdrop. The real objective was the party. He spoke about this, saying that people who buy Rolexes are his customer, not some pimply-faced teenager who rides the bus and walks around with earbuds stuck in his head. The vocal masses do not understand this, as they do not think about the big picture. Liberty Media totally missed this point too. The company is not run by people who have built or run an empire. When they kicked the grid girls to the curb, opened the paddock to the hoi polloi with their selfie sticks and giant foam #1 fingers and face paint, it was over.
Now the F1 model is to make the races more like American football games, with pitched on track battles, Nascar TV style graphics, music like American NFL or boxing TV broadcasts, etc. Is there a market among the unwashed masses for European tech battles set in a hyper political fishbowl? I don't think so, but the question is intriguing nonetheless.
|