The Class of 2010

A ten-part F1 Big Picture series celebrating the return of F1 in Bahrain. The entire line up of Formula One drivers poses for a 2010 class shot on the start/finish straight in Bahrain. The portrait was taken before Free Practice got underway, when the drivers were all still friends.

Credit: Paul Gilham/Getty Images

FOTA United on the Future

Silverstone, 18 June 2009 – Since the formation of FOTA last September the teams have worked together and sought to engage the FIA and commercial rights holder, to develop and improve the sport.

Unprecedented worldwide financial turmoil has inevitably placed great challenges before the F1 community. FOTA is proud that it has achieved the most substantial measures to reduce costs in the history of our sport.

In particular the manufacturer teams have provided assistance to the independent teams, a number of which would probably not be in the sport today without the FOTA initiatives. The FOTA teams have further agreed upon a substantial voluntary cost reduction that provides a sustainable model for the future.

Following these efforts all the teams have confirmed to the FIA and the commercial rights holder that they are willing to commit until the end of 2012.

The FIA and the commercial rights holder have campaigned to divide FOTA.

The wishes of the majority of the teams are ignored. Furthermore, tens of millions of dollars have been withheld from many teams by the commercial rights holder, going back as far as 2006. Despite this and the uncompromising environment, FOTA has genuinely sought compromise.

It has become clear however, that the teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 World Championship.

These teams therefore have no alternative other than to commence the preparation for a new Championship which reflects the values of its participants and partners. This series will have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders.

The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series.

FIA – Formula One Cost Cap Q&A

Why does Formula One need cost capping?

Formula One faces a period of great uncertainty during this harsh recessionary period.  Funding a team is increasingly seen as a discretionary spend for the majority of team owners and sponsors.  To ensure a healthy grid all are agreed that costs need to be cut.

Two main philosophies have emerged, either i) reduce activity levels through very restrictive technical rules, plus a degree of standardization if required; or ii) restrict the money that  teams are allowed to spend (cost capping).

The FIA believes that unfettered technical competition is part of Formula One’s DNA, and would like to see this flourish, but in an environment of strong, responsible and innovative management, not a spending race.  For these reasons cost capping is preferred.

What is covered by the cost cap?

Everything except:

• Marketing and promotion – we want Formula One teams to look good and to entertain their partners.  We want manufacturers to show off their cars at exhibitions and city centre displays, and we want teams and their sponsors to promote Formula One through inclusion in advertising campaigns.
• Drivers and young driver programmes – Formula One is the pinnacle of motor racing.  Fundamental to this is attracting the world’s best drivers.  Moreover we wish to encourage continued investment in young driver programmes.
• Engine costs – In order to attract manufacturer owned teams to take up the cost capping option, the FIA have decided to exclude engine costs for 2010 (only)

Furthermore, we are allowing manufacturers to honor existing supply arrangements, provided there is no element of subsidy that could have a cartel-like affect on the engine market.

How did the FIA arrive at the £40m figure?

We arrived at the figure by analysing both revenues and costs in Formula One.

We know what the FOM (Formula One Management) revenue is likely to be in the future, and we have some understanding of realistic sponsorship revenues during the recession. Taken together, it’s possible to project total external revenues for all finishing positions in the Championship.  At £40m we believe that 70 per cent of the grid can generate a profit.  This transforms the business case for owning a Formula One team, for both manufacturers and private investors. The desired net result is to have a very healthy commercial environment for present and new owners.

We also had a good look at costs, and believe that £40m in combination with greater technical freedom will allow engineers to create Formula One cars even more interesting and exciting than today’s cars.

Will the £40m cap for 2010 be changed for future years?

As set out in the Regulations, the cap for future years will be decided by the FIA.  In setting future years’ limits, the FIA will have regard to the progress of the project and the feedback from all stakeholders to the sport.

How does the FIA intend to police the cost cap?

Throughout the construction of the Regulations we have worked with expert forensic accountants.

The Regulations allow for the establishment of a Costs Commission to monitor and assist teams in complying with the Regulations. The Costs Commission will appoint auditors, and other financial experts as required, in order to do this.

A key factor is that all cost capped teams are businesses engaged in exactly the same activities and this enables consistent interpretation of the principles of the regulations.  It is difficult to hide engineering activity or to falsify accounts consistently, given the traceability of transactions in today’s world and the access and inspection powers which the Costs Commission will have.  The penalties for defrauding the FIA with regard to any willful transgression of any Regulation or any subversion of an investigation are well established.

Is a Costs Commission really needed?

The emphasis is on teams to demonstrate compliance, and to pro-actively seek clarification and interpretation of the Regulations. As the Cost Cap Regulations are new the FIA has decided to provide an appropriate resource, staffed with a small number of financial and technical experts, to deal with such issues, and to monitor compliance, such that the Regulations are effective.

Who pays for the Costs Commission, auditors and other experts, and doesn’t this just add costs, rather than removing them?

The cost capped teams will each pay an equal contribution to cover these costs.  The costs involved will represent a tiny fraction of the costs saved in Formula One.

What is the penalty if a team exceeds the cost cap?

This depends on the case.  The International Sporting Code covers transgressions in the same manner as for the technical or sporting regulations.  There are no ‘fixed penalties’. The Cost Commission will judge the degree of misdemeanor and advise the FIA , who will determine any penalty.

What measures are there to prevent teams spending money this year on a car that will compete under cost cap in 2010?

The teams must demonstrate that they have adhered to the spirit of the regulations and spend no more than 50% of the value of the 2010 cap on the development of the 2010 car (in 2009). Furthermore, there are limits on the value of stock of car parts which can be carried into 2010.

How will you stop manufacturer backed teams from running hidden F1-related projects in their parent companies?

The question is actually asking ‘how will we stop manufacturer teams from cheating’.  The principles of determining a fair market value for all activities which are undertaken for the benefit of a team (whether a manufacturer or not) are clearly set out in the Regulations.

No team would wish to be exposed as cheating, so we expect a healthy amount of self-policing.  However, the rules are clear on this point, such activities must be declared and appropriately valued.  Bear in mind the access that the costs commission and auditors have and their ability to compare reported costs across all cost capped teams.

Will teams be allowed to buy parts from other teams/manufacturers?

Yes, according to the FIA regulations, but one should bear in mind that contractual arrangements with the Commercial Rights Holder will place restrictions on such activities.  Inter-team transactions are covered by the regulations.

How many teams do you expect to take up the budget option?

All those who wish to transform the commercial basis of participation for their owners and investors.  The FIA believes that cost capping will prove attractive, and it hopes that over time all teams will join. So far, interest has been extraordinarily high from both existing teams and potential new entrants.

If a team decides not to become cost capped now, can it do so at a later date?

Yes, a team will be able to opt to become cost capped in advance of each year of its participation in the Championship.

Are you worried that F1 will effectively become a two-tier championship?

There is one set of Technical Regulations and as always there are choices for all teams as to how they decide to attack the Championships.

Sébastien Bourdais

Bourdais has secured another year in Formula 1, by convincing Toro Rosso to sign him up for the 2009 season. Now he just needs to prove he’s got what it takes. Copyright: GEPA pictures/ Mathias Kniepeiss

Force India – Every second counts

One hour left before the start of a race. There’s a million things going on, and the clock’s ticking down. How do you keep cool and get everything done?

Chief mechanic Andy Deeming explains the procedures the team will follow before the start of a standard race time start:

11:20
Myself, the engineers and drivers will sit together for a final race strategy meeting. We’ll finalise what tyres both drivers will start on, when the pit stop windows will be, fuel loads and also review the weather for the next three hours, checking if we need to be ready to change from wet to dry or vice versa. The meeting is usually about ten to 20 minutes; it doesn’t need to be longer as we want the decisions, not a debate.

12:00
The drivers will have a light lunch before the start of the race. Usually they will have something simple like pasta or rice as it’s easy to digest and gives an energy store. The team will usually eat around the same time.

12:30
Drivers parade. At each race, all drivers are required to go out on track to greet the fans. Normally this involves them being on the back of a low-loader lorry and being driven at slow speed round the entire track, waving at the fans. The atmosphere is usually very good – most of the fans have been in the stands for hours and haven’t seen the drivers until this point.

12:45
All mechanics working on the car in the garage and on the grid will get changed into their crew suits and fireproof underwear.

The trolleys taken to the grid are also prepared by the truckies. Force India has one trolley per car that can be pulled or pushed up the pit lane. It needs to be very smooth – there’s a lot of equipment on there and when the guys bring it back from the grid they will be running to make it back to the garage in time. Each trolley will be loaded with two sets of tyres; the set the driver will start on, and a spare set. If rain looks likely we’ll take a wet weather tyre on another trolley. There will also lots of other items including a generator, a dry ice box and ice, fire extinguisher, air bottle, regulator, hoses and consumables like brake fluid, brake cleaner, wheel nuts and umbrellas.

13:05
Our chief engineer Dominic Harlow will gather everyone in the garage together for a briefing on the race strategy. Straight after the meeting the grid trolleys will be taken by two people each up to the grid.

13:20
The driver, who will be changed into his overalls and boots by this point, will come into the garage to put on his helmet and gloves. Once he’s changed into these he’ll get into the car and be strapped in with the seatbelts. The pit lane opens at 13:30, so we like to be ready to go on the green light if we need to. We’ll do radio checks between the engineer and the driver and then the pit crews to make sure everyone can hear.

13:30 – 13:45
Pit lane opens. Any time from now until 13:45 when the pit lane closes, both cars will leave the garage. At most races each driver will drive round the track, coming through the pit lane once before driving to the rear of the grid.

When the driver gets to the rear of the grid, he must cut the engine. Two mechanics will meet each car and then push it into its grid slot. Once in position the car will be put onto short stands, raising the car around five inches from the ground. The tyres will be removed and wrapped up again in blankets. The car will be reconnected to the umbilical and the radiator inlets cleaned before the cooling fans are put in. Each fan will be filled with dry ice to keep the car cool – in some races like Malaysia and Bahrain where the temperatures can be very high, leaving the car sitting on the grid can cause it to overheat.

Truckies carrying tyre warmer blankets will also arrive at the grid.

13:45 – 13:50
We’ll fire up the engine of each car to check there’s no problems.

13:50
The driver will get in the car, we’ll check the spare tyres and double check the race starts. Each driver will do a radio check, connect his drinks supply and secure his ear pieces. The bodywork will be firmly secured.

13:55 – 13:57
All tyres must be fitted to the car. 13:57 is the latest they can be fitted before the generator power is cut, the tyre blankets disconnected and the grid trolley leaves the grid to go back to the garage.

13:59
The tyre blankets are removed, the engine started and the car lowered to the ground.

13:59 and 30 seconds
All personnel working on the car have to be clear of the car and standing behind the white lines at the side of the grid. Back in the garage, there’s a small team of people ready and waiting in case there’s some sort of problem, or weather change, on the formation lap.

14:00
The cars will leave the grid for the formation lap. Once every car is clear of the grid, the mechanics will run back into the pit lane and back to our garage. When we get back to the garage, we put our balaclavas and helmets, watch the start and then deal with what comes next…