Ecclestone Backing Cap On Team Spending To Secure F1's Future

Ecclestone Thinks Recently Agreed-Upon Cost- Cutting Measures Fall Short Of The Mark

F1 Management Chair Bernie Ecclestone has warned F1 teams to "expect a reduced share of revenues," and he also is "backing the idea of a cap on team spending to secure the sport's long-term future," according to Sylt & Reid of the FINANCIAL TIMES. While teams in December agreed to cost-cutting measures including a "ban on track testing and the introduction of a standardised engine," the teams said that the savings "do not go far enough, and are demanding more money" from CVC Capital, a private-equity group which owns the commercial rights to the sport, Ecclestone, his family trust and JPMorgan. But Ecclestone said, "We don't need to pay more. We've got to give them less." Ecclestone accused the teams of "dragging their feet in negotiations over long-term commercial contracts, warning that, as a result, they could lose their share of the estimated $50[M] in prize money the Honda F1 team would have earned this season" (FINANCIAL TIMES, 1/20). 

CUT TO THE CHASE: Renault Managing Dir Flavio Briatore, speaking at the unveiling of Renault's new car yesterday, said that F1 "must cut costs if it is to survive the credit crunch." Briatore: "No business can survive only by losing money. In a time of crisis, as difficult as this one, we have to set a good example." Briatore added that F1 "must have a long term vision and avoid implementing costly new regulations such as those in place for the upcoming season." Briatore: "All the teams put together are throwing [US$155.2-194M] out the window" (AFP, 1/19). Briatore added that Honda "should also have listened to his warnings about soaring costs." Briatore: "I was always pushing about the reduction of costs and now it looks like everybody has had my idea. If Honda had listened to me five years ago, maybe they'd still be in business." Meanwhile, he denied that he "will walk out on Formula One in two years' time," and said that he wants to "help secure a healthy future for the sport" (REUTERS, 1/19).