Friday, April 10, 2009

Normand Legault doubts F1's economic model

In a recent interview with Montreal newspaper La Presse, former Canadian Grand Prix promoter Normand Legault shared his doubts regarding Formula One's economic model, insisting that it cannot survive in the real world.

According to Legault, F1's majority owner CVC Capital Partners owes $240 million yearly in interest, to which must be added $300 million in capital, to pay off its $2 billion debt. The need to reimburse 540 million dollars annually created the necessity of asking Grand Prix hosts to accept $50 million fees in order to present races.

"At that price, it can't be profitable (for a race organiser), no matter how they calculate profitability," stated Legault.

He elaborated on the subject by citing the government-backed Australian event as an example: "The organisers, who know what they are doing, lose $40 million a year. How long can they endure that? Someone in the opposition or the population will eventually ask if it's all worth it. You have to question the business model."

When asked if he believed current Grand Prix organisers are beginning to do so, the Canadian indicated that all the signs are there.

"You can already see the house of cards is falling down," he answered. "The French motorsports federation let go the 2009 GP; Hockenheim will not have a race in 2010, the Nurburgring is in difficulty; the Chinese are reconsidering their participation after 2010."

Bernie Ecclestone's push to augment income by leaving traditional venues in favour of higher-paying Asian and Middle Eastern markets is not the right direction to take, Legault believes, as the focus remains on generating revenue in countries where the public may not necessarily be interested in Formula One.

"F1 heading for Asia or the Gulf is a bit like the NHL (National Hockey League) trying to set up a team in Nashville," Legault explained.

"In Montreal, there were more people on Fridays than several GPs have on Sunday," he said. "And the spectators weren't soldiers in civilian clothing as is the case in a few countries I won't mention!"

Legault admitted that the government of Canada, and that of host province Quebec, pulled back from bettering their offer to save the Canadian Grand Prix due to the uncertainty surrounding Formula One's future.

"It's fine to have a five-year contract, but do you know what you will have as a product? What happens if the next Hamilton, Massa or Kubica are in another championship? What are you buying for 30 million a year? What does that guarantee?"

Regarding the chances of seeing the FOTA team alliance cut its links with the FIA and FOM in order to set up its own independent championship with the same teams and drivers, the former Grand Prix promoter revealed that he had been consulted frequently on the concept.

"It is an eventuality," he said. "But I don't know if they're there yet."

When asked if he was keeping the door open in case the job of leading the possible breakaway series was offered, Legault replied with a laugh: "There's no door yet!"

FIA official crashes Renault R28 in Dubai Roadshow

An official of F1's governing body FIA on Thursday had a high speed crash at the wheel of a contemporary Grand Prix car.

On the occasion of Renault's 'roadshow' event in Dubai, the United Arab Emirates' automobile club President Mohammed bin Sulayem - also FIA Vice President for sport - shunted last year's R28.

On the main straight of the Dubai Autodrome, the car swung to the right under power and struck the concrete barrier, necessitating a visit for the 14-time Middle East rally champion to the medical centre.

Earlier, bin Sulayem had successfully driven the car on a closed road.

"Fortunately he was uninjured and the car will be taken back to be repaired," said a Renault spokesman.

In Dubai for the roadshow event is Nelson Piquet.

Coulthard - FIA will approve double diffuser

David Coulthard believes the Court of Appeal will declare the diffusers of the Brawn, Toyota and Williams cars to be legal in next Tuesday's FIA hearing.

The Scot, although now retired as a racer, remains an advisor to Red Bull Racing, one of the teams that is questioning the legality of the rear aerodynamic solutions.

But Coulthard, also currently standing in as Red Bull's F1 reserve driver, is sure the FIA will tell the protesting teams that the designs are legal.

"I am not an engineer, so I have to rely on the judgement of the FIA technical people," he said in an interview with the Austrian sports website laola1.at.

"They said in Melbourne that the cars were legal and I think the FIA will confirm that judgement on the 14th," Coulthard added.

"The other seven teams are probably going to have to change their cars."

One of the arguments against the controversial diffusers is that declaring them legal will result in the other seven teams having to implement expensive and extensive car redesigns amid a global recession.

"That is right, but it does not mean that the diffusers are illegal," Coulthard insisted.

"You shouldn't necessarily be punished because you have interpreted the rules differently and thus taken an advantage. Those three teams also spent money to develop their aerodynamics, so that money would also be wasted.”

"Formula one is not just about saving money, it is also a championship!" Coulthard said.

Stewart - "Hamilton must remains calm"

Lewis Hamilton could ‘destroy his career’ if he hastily quits McLaren over the lie-gate scandal, Sir Jackie Stewart has warned.

Some have suggested the reigning world champion's rumoured quit threats are merely his and father Anthony's way of making clear their disgust at being caught up in a saga that has damaged their integrity.

But an authoritative source this week reported that Hamilton, 24, was genuinely overheard in his Kuala Lumpur hotel lobby musing about opportunities that exist for him on the American racing scene.

And Norbert Haug, racing boss for Mercedes, is quoted by the German press this week as revealing that Hamilton ‘really was very close’ to calling it quits after he was found guilty of misleading stewards.

Stewart believes there would be some sort of 'moral clause' in Hamilton's contract that would allow him to leave McLaren in this sort of situation.

"Lewis and his father need to keep cool heads right now. If he goes elsewhere it could destroy his career, certainly put it in jeopardy,” Stewart warned.

Scandal aside, Stewart also wonders if a better option than McLaren really exists for the Briton.

"McLaren are not competitive right now but there is no reason why there could not be an immense improvement in the next two or three races," he said.

Ralf - FIA should drop the 'lie gate' scandal

According to Ralf Schumacher, the FIA should have dropped the 'lie-gate' scandal in the interests of Formula One.

The six-time Grand Prix winner already admitted last weekend that lying is not a rare commodity at the pinnacle of motor racing.

"You could say that this is inexcusable," 34-year-old Schumacher is quoted as saying by the German press, "but I say it should be excused."

The scandal has claimed the scalp of sacked McLaren Sporting Director Dave Ryan, triggered an extraordinary meeting of the World Motor Sport Council, and thrown into doubt the futures at McLaren of Team Principal Martin Whitmarsh and reigning world champion Lewis Hamilton.

"I have to ask myself why the FIA draws this thing out even further," Schumacher continued. "It is unfortunate that at the moment such an exciting season is overshadowed by such things."

Also in the German press, experts and pundits are fearing the outcome of the FIA meeting on April 29.

Sporting sanctions may spark the already struggling Mercedes' withdrawal from the sport, while financial penalties would be disastrous amid the backdrop of the global recession.

Mercedes' racing boss Norbert Haug told the Cologne newspaper Express: "This situation is absolutely not positive for Mercedes.”

"I report directly to Daimler Chairman Dr Dieter Zetsche. If the situation should become intolerable, we will get together in Stuttgart and make a decision

Williams questioned Red Bull and Ferrari sidepod design

Williams' concerns about some rival cars' possible infringement of the 2009 rules is likely to be cleared up on Thursday.

In Australia late last month, in the middle of the 'diffuser' saga, the British team lodged but ultimately dropped a protest against the Red Bull and Ferrari teams.

It is believed the protest - a rare action for Williams - related to concerns about the sidepod aerodynamics of the respective cars.

The Grove-based team said it withdrew its protest ‘in the interests of the sport’, and Technical Director Sam Michael said he trusted the FIA to handle the problem.

Motorsport Aktuell reports that the Technical Working Group, comprised of top technical boffins of the F1 teams, is meeting on Thursday where the matter will be discussed.

The Swiss publication said Williams could have dropped the protest also because it was discovered that half of the cars on the grid fall foul of their concerns.

Schumacher will absence in Chinese and Bahrain

A Ferrari spokesman has confirmed that Michael Schumacher will not be travelling with the team to the forthcoming Chinese and Bahrain Grand Prix.

The 40-year-old seven time world champion, on duty as an advisor to the Italian team at the opening two races of 2009, faced immense public criticism for his apparent role in strategic blunders.

Ferrari figures got together for a post-Sepang 'crisis meeting' at Maranello earlier this week, but Schumacher was not present.

It now emerges that the team will do without the services of the most successful driver in F1 history for rounds three and four of the current championship.

"He will not be at those races," the spokesman is quoted as saying by Germany's Sport Bild.

Ferrari President Luca di Montezemolo said after the Tuesday meeting that he is determined the team should not become a laughing stock.

"I made the point that I don't want to find us on some sort of TV comedy video programme after each race," he insisted.

Marc Surer, the former Swiss F1 driver and regular commentary pundit, told a German language newspaper that Ferrari should not employ Schumacher if he is only a part-time advisor.

"You can only become part of the process of being a racing team if you are there all the time. But Schumacher is only a semi-advisor, and that is no solution," he told the Basler Zeitung.

Sir Jackie Stewart - Unprofessional stewarding in Formula One

The seemingly out-of-control 'lie-gate' scandal is the result of unprofessional stewarding in Formula One, according to regular FIA critic Sir Jackie Stewart.

The Scot, seemingly perpetually locked in a war of words with FIA President Max Mosley, said the entire affair could have been avoided if the governing body's officials on duty in Melbourne were better organised.

Stewart, a triple world champion and ex-team owner, said McLaren rightly radioed race control during the Melbourne race for quick clarification about whether Lewis Hamilton should or should not give the place back to Jarno Trulli.

"But he (Charlie Whiting) was apparently unavailable, trying to sort out the Sebastien Vettel problem," the 69-year-old, referring to the German's crash with Robert Kubica, told the Scottish newspaper the Herald.

"It seems strange that only one person has the authority to deal with these inquiries which could be result-changing in a multi-million pound sport,” Stewart continued.

"As it is, we now have a potentially serious state of affairs for McLaren."

He believes McLaren will be harshly penalised, now that the affair has spiralled into formal admissions and sackings by team figures, and incontestable fraud to be assessed by the World Motor Sport Council later this month.