farmdoc's blog post number 428

I’ve previously written of Corporate Darwinism vis-a-vis the Global Financial Crisis [GFC]. Well, folks, it looks like the GFC’s arrived in F1 land. Last Friday eight F1 teams, including Brawn, Ferrari, McLaren, Renault, Toyota and BMW Sauber, via their Formula One Teams Association [FOTA], announced their intention to leave F1 and start their own breakaway series, after they’d failed to resolve their dispute with F1’s governing body, the FIA. The dispute was due to the FIA imposing a US$60M (A$75M) budget cap for each team. FOTA says the new series will have transparent governance, encourage more entrants, and listen to the wishes of the fans including offering lower prices for spectators. Good stuff. The major drivers, stars, brands, sponsors, promoters and companies historically associated with F1 will all feature in this new series. Whoopee. The Australian Grand Prix Corporation’s contracted to hold the F1 Grand Prix in Albert Park until 2015. Whilst the Corporation and the Victorian Government are sounding brave and optimistic, they know that without the major teams and drivers, F1’s dead. It remains to be seen if FOTA’s move is brinkmanship or fair dinkum. Bernie Ecclestone won’t send his cash cow to the abattoir. All will become clear in the next few months. The days of the winning drivers spraying Moet may be over. Perhaps the GFC will achieve what Save Albert Park couldn’t. Oh what fun.