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The Gravity of the Situation
By Dale Calkins May 13 2009
Surely, Ferrari has threatened to leave Formula 1 before, though with its most recent statement of intention to do so, could the Scuderia actually be serious? If so, 2010 would mark the first ever season to not feature Ferrari in the sport's nearly sixty year history.

The Gravity
of the
Situation

It really came as no surprise to me to hear Ferrari threaten to cease its involvement in Formula 1. These empty threats have been thrown about before when Ferrari has not gotten their way. Perhaps I supported them during those times as well, sensing some sort of unjust action on the part of the FIA, though this time I am unsure.

I recognise the need for cost cutting. The superfluous expenditures of our sport are certainly not sustainable, even for Ferrari. Indeed, I think the Scuderia need not complain about being placed under more severe technical constraints as a punishment for their refusal to accept a forty million pound budget cap. If Ferrari does wish to compete in Formula 1 and prove to the world its strength as the oldest and best Formula 1 competitor, it ought to compete with the budget cap. Would this not highlight it an even stronger team?

Though I suspect this will not be a favourable solution to the Scuderia. It would not wish to render its state of the art facilities useless. I should think I would not wish to either if I were in possession of the most advanced equipment. Though the facilities would be of even less use if the team were to not exist.

Returning to the sincerity of the team's threat, I am rather sure they are serious. Serious but content in the knowledge of their threats being effective in the past. Surely their demands will be met this time as well. Especially with Renault, Toyota and Red Bull also demanding a "reevaluation" of the budget cap. There would be little doubt of Formula 1's nonexistence without these teams.

If anything can be certain in this situation, it is the need for greater discussion regarding cost cutting in the sport. I am of the opinion of a two tiered championship not being the answer. At the same time, I am also wishing for there not to be outrageous expenditures in our sport. Of course I am not to decide, as no single entity should. The same I can say of Ferrari and the FIA. Cooperation is needed, do not be the fools who would so callously reject it.

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13 May, 2009 14:32 Report
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The Gravity of the Situation
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13 May, 2009 14:53 Report
tifosa (IP Logged)
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Re: The Gravity of the Situation
Dale, every team is in favor of cost cutting. But what is being pushed in the name of cost cutting by the FIA is appalling.

Ferrari is not complaining just for the sake of getting their way. How can any company go from an operating budget of about 400 million to 40 in one year?

And the "unlimited technical freedom" that will be allowed to capped teams is an oxymoron. Unlimited technical freedom needs money, and 40 mil aint it.

The FIA is trying to have it both ways and interfere where they have no say. If there has to be a cap, the teams should have a say and not this totalitarian BS. It's their money after all.



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13 May, 2009 14:59 Report
RGS (IP Logged)
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Re: The Gravity of the Situation
research mean money but rules changes every year mean more money. Keep the rules for 3 or 4 years, decrease a little bit the cust limit and there you have it, cost cut, research, development, racing for less money than teams are expending now...

How much do you think HONDA expend on the development of their BrawnGP car??? 1.5 years of research and development is an awful amount of money and no counting they havent got their KERS system yet which for sure now I understand Mercedes game and why they wont quit, isnt very obvious???



Edited 1 time(s). Last edit at 2009:05:14:12:00:46 by RGS.

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13 May, 2009 15:31 Report
JONNY F.2008 (IP Logged)
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Re: The Gravity of the Situation
+1 to tifosa. this aint communism. we play the game they created.

+1 to RGS. and damn right macca keeping quiet. if they get the standard kers, thats their racing budget for the next ten years. cap or not.

here is another:
the factory you mention?
it is filled with people who do job for paychecks.
not just ours, but all 11 factories.
cut those budgets that far that fast and we are not talking about pay cuts, we are talking about pink slips.
thats a lot of family's not getting paychecks to spend into the economy. if 10 teams cut say 200 mil each. thats 2 billion NOT going into the economy of the world.
that is helpful how?
if the teams got it, let them spend it. not many can and the ones who can should be to the greater good of us all.

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13 May, 2009 17:01 Report
Dale - DCX (IP Logged)
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Re: The Gravity of the Situation
I do believe I stressed the the need for a dialogue between each team and the Federation. I should not wish to suggest the need for a forty million pound limit, though a limit is necessary. One which most, if not all of the teams can meet. There will of course be disparity, though the sport cannot survive financially without such measures. Is the racing not also exciting when the teams are closer? We may continue to whine about artificial levelling, though it is inevitable. So forty, one hundred, two hundred, whatever. As long as the appropriate and amenable discussion takes place.

The notion of unlimited technical freedom is also not as absurd as one may think. It is of course not unlimited as there are still rules in place. And within those regulations, a team needs to spend the amount of money they have on what they decide to. This time, teams just have less money so they need to make more calculated decisions.

Ultimately, I believe the way forward is through increased transparency and discussion, which I believe I more than alluded to in my article.

What is so terrible about laying workers off? Is it not a necessary "evil"? Employees may have emotions and families, though they are no different than wind tunnels and hammers. They cost money and when one has less money to spend, things must be cut, including jobs. It may be unfortunate, though this is the capitalist system. There can not be competition financially and technically, without the need to exploit the worker, for the worker is but a cog in the capitalist system.

If we are so concerned about the world economy, exorbitant spending cannot take place. It is also not as though the money will just sit there unable to be used for something. Ferrari and Toyota will spend their hundreds of millions on other things like hospitality, charities, pensions, golden parachutes for those fired employees and of course on their road car endeavours. The money will continue to go into the economy somewhere. It is not being taxed away or stored in a damp cave.



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13 May, 2009 17:08 Report
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Re: The Gravity of the Situation
 



Edited 1 time(s). Last edit at 2009:09:28:05:10:42 by redline.

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13 May, 2009 17:16 Report
tifosa (IP Logged)
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Re: The Gravity of the Situation
Only problem is:McC is not Ferrari.

When all the constructors, including McC were on one side and Ferrari the other, we all know how that story went down.

And Dale, no one is arguing the points you made. Here is the critical issue: how can there be dialogue when the FIA has refused to discuss this? It is either their way or the highway and I can't blame participants for looking after their own interests. That's what the FIA, FOM do as well.

FOTA came up with proposals to reduce costs that were swept aside; the teams are against (rightly so) a two-tier system which as things stand now, is what the FIA is going for.

I say any team that wants better governance and teams' inputs into what goes in that governance is right. Fight on Ferrari, Renault, RedBull, Toyota.



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13 May, 2009 17:29 Report
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Re: The Gravity of the Situation
Just skimmed an article from motorsport-totat.com about persistent rumors on the fact that Ferrari is also preparing a parallel championship that will use all the current A1GP infrastructures in case they have to leave F1.

link



Edited 1 time(s). Last edit at 2009:05:13:17:30:45 by joflizn.

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13 May, 2009 17:34 Report
tifosa (IP Logged)
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Re: The Gravity of the Situation
Aye, I've heard and read about that too. If the grapevine is to be believed, the A1GP mechanism will be used for the rebels.

I think tracks/organizers will be happy to negotiate with FOTA over Bernie-show-me-the-money Ecclestone.



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13 May, 2009 17:35 Report
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Re: The Gravity of the Situation
I for one respect all teams that take a stand against something that fundamentally changes the sport to that degree and turns it into something that it was never meant to be



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13 May, 2009 17:43 Report
JONNY F.2008 (IP Logged)
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Re: The Gravity of the Situation
i was not debating the points of the article. merely trying to point out something that has been seemingly overlooked on this topic. the car doesnt cost the amount of the budget. the money as we all know is spent on people.

i am praying for resolve. but fear that we are dealing with men who dont give too much. max - luca - bernie.

as one who is rigid and firm in my beliefs i can understand how this will get out of hand further than it is.



i am tifosi through and through.
as i will be until i die.
as i have been since birth.

membro dalla nascita de tifosi.

2008 FERRARI F1 FORUM PREDICTION CHAMPION.

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13 May, 2009 18:51 Report
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Re: The Gravity of the Situation
 



Edited 1 time(s). Last edit at 2009:09:28:05:10:09 by redline.

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14 May, 2009 11:59 Report
RGS (IP Logged)
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Re: The Gravity of the Situation
these 2 weeks are going to be pretty intense...



Edited 2 time(s). Last edit at 2009:05:14:12:00:19 by RGS.

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