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Formula One Cost-Cutting Debate Reveals Sharp Divide Among Teams

All 11 F1 teams "are in another battle this year, however, with the biggest and bloodiest fights happening behind the scenes and involving team directors and the organizer and promoter of the series in a race to reduce the cost of competing," according to Brad Spurgeon of the N.Y. TIMES. Though the global economic crisis prompted cost-cutting measures six years ago, "team spending has crept  up to its highest levels," with the richest teams spending as much as $400M a season. Unlike "the meticulous sporting and technical regulations that dictate how a Grand Prix race is run, the plan for spending cuts is not only undefined but is also factious when it comes to how to guarantee the survival of all." Mercedes Exec Dir Toto Wolff said, "Getting everybody under the same roof, or agreeing to the same principal, is very difficult." The teams have until the end of June "to deliver a plan" to FIA. Yet, "they appear to further from agreement than ever." Many say that "the lack of competition on the track is a direct result of the budget inequalities." But for others, including Red Bull Team Principal Christian Horner, budget struggles "are at the heart of what makes the series the highest form of racing competition." Horner: "If you look at it, yes, two teams have won all the races in the last 12 months. But Ferrari and McLaren have no less a budget. So it's down to the people, down to the skill and how you apply those budgets." The crux of the division is that in January, all teams agreed with FIA to institute a budget cap of $200M in '15 and to put an end to what many team directors call "a spending war." But in April, a splinter group of the six wealthiest teams, calling itself the Strategy Group, decided that "it did not want a spending limit." Horner, "with a mix of fatalism and humor, took a more nuanced approach." Horner: "I think there is some contructive discussion. I would think so far we've probably saved about 10,000 euro. But we're going in the right direction, and hopefully through the process of the next month, before regulations are fixed for next year, we can come up with some significant savings" (N.Y. TIMES, 6/8).

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