One of the many measures that Liberty Media intends to adopt in the next five years in Formula 1 pertains to the distribution of the prize money, and to solve the huge differences in budget between teams, something that Greg Maffei, chief executive of the company, described as “a crazy and somewhat difficult to resolve”. And do not lack reason. Attack the economic model of the category is a chimera as long as it remains in force the current Agreement of the Concordia, which must be renewed in 2020.
Until then, Liberty Media has many other fields pending on which to focus its actions. Still, the teams less strong on an economic level, believe that can be taken short-term measures to control the expenses of each team, thereby reducing their need for income. So what you think Bob Fernley, acting team leader of Force India. The structure of india has been one of the more belligerent with the departments of the FOM, especially since two years ago.
Fernley, speaking to Motorsport, has advocated a distribution more equal to reduce the dependence of money from FOM, and therefore, the demand of their sponsors, and to allow a competitive arena more equal in the talent of the drivers can make the difference a more substantial: “we must recognize that the financial models have changed in the Formula 1. Before, the primary source of revenue was the sponsor, and completed with the proceeds of the FOM. Today, it’s the reverse: the FOM is the primary source of income, and is complete with sponsorship. That is the transition that has been lost, and that is why a more equitable distribution is crucial”.
“The opportunity, for now, is to be able to control the costs. If it reduces the need to spend, you can also reduce the need for income. And if you can also increase the competition in that process, will mean that pilots will be an important factor, and that the talent will prevail. They have become our best asset, and there is where you should go, that is the philosophy that we’ve had for a while.”
To Fernley, in addition, the ideas of Liberty Media for the business are in line with what his team has defended during these years: “cost Control and a better distribution of incomes (…) are two factors that will give us competition. If you could have a system that is more inclusive of franchise, those are the three things that we have been advocating. It seems that all of them are on the agenda of Liberty and that is very encouraging for us. Force India and I myself have been very critical of what has happened the last two years, and we have been very lonely at times. In that sense, it’s a good thing that we have been saying for the last two years is becoming a trend“.