128 million euros more to help small F1 teams?

CVC Capital Partners, the majority shareholder of the Formula One Group, is reportedly ready to pay an amount of 100 million pounds (approximately 128 million euros) to help financially struggling teams.

The threats of a boycott of the United States Grand Prix by Lotus, Force India, and Sauber related to financial and economic problems, which have already led to Caterham and Marussia’s teams being placed in administration, seem to have borne fruit.

Indeed, The Times reveals that Donald McKenzie, the chairman of CVC, after promising the teams a solution in Austin, reportedly called Lotus F1 owner Gérard Lopez to offer a compromise. A sum of around 130 million euros could thus be released to avoid a decline in the number of cars on the grid, already reduced to 18 participants in Texas.

If CVC may therefore forego part of its revenue, it is by design: indeed, as the owner of Formula 1, the company could be led to sell its product in the coming years. However, a product in poor health could be devalued, and there are significant risks that inaction may result in a resale that is not advantageous for the main shareholder.

This Monday, Gérard Lopez, questioned by The Guardian, explained what these additional revenues could consist of: « I know that CVC and Bernie have studied the situation. It is a basic payment given to the smaller teams, which will essentially be used to set up a normal operating budget. To be honest, it’s really not a complicated thing to do. It just requires goodwill. The overall amount we are discussing, once you divide it among the teams, is not that huge. »

For him, the situation can be resolved quickly, which would avoid resorting to more radical actions: « There is a way to propose a solution in the coming days. I truly believe it is possible to resolve this in the days ahead, possibly even before Brazil. In such a case, I don’t see the point in doing something drastic that would harm the sport. »

He admits, however, that the approval of the more prestigious teams will be needed: « If it requires everyone’s participation, an agreement will be necessary. Even those who have a firm opinion on the subject are not stupid and they understand that a small effort would help everyone, including themselves. »

On the side of Monisha Kaltenborn, the director of Sauber, the perspective is the same: « Nobody is asking for something unreasonable. We must acknowledge that times have changed, that the level to enter F1 has changed. »