Brawn: Ferrari understands need for payment changes
- Published on 08 Mar 2019 15:14
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- By: Fergal Walsh
Formula 1's managing director Ross Brawn says that Ferrari understands the sport's need to change the way money is distributed between teams.
Currently, Ferrari receives the highest amount of capital throughout the year, which includes a Long-Standing Payment (LST) of $73 million, as part of the Concorde Agreement that was implemented by former owners Bernie Ecclestone and CVC.
Ferrari is the only team that receives the LST, while it is also provided with a series of other payments that are exclusive to a select number of outfits.
But as F1 looks to make the field more competitive in the coming years, part of its plan is to alter the methods of providing money to the teams at the end of the year, as well as enforcing a budget cap for all competing teams.
"There is too much disparity between the top two or three teams and the rest of the grid," Brawn told The Guardian. "You have a group of teams that could finish last and still earn more than the team that has won the world championship.
"We have to recognise the importance and history of Ferrari and the unique place it has in the sport but we also have to find a balance between that recognition and an equitable position for the rest.
"We know that the ones that have got it all want to keep it and the ones that haven’t got it want more. It’s finding a fair balance in how we distribute the revenue. We know that if we have a more equitable distribution of revenue we will have a better F1.
"You are never going to attract new teams when you have such unfair distribution. Ferrari recognise that. They will fight tooth and nail for the best they can [get] but logic will have a fair part in trying to find a solution."
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Replies (6)
Login to replycalle.itw
Posts: 8,527
Of course they will do their best to get a better deal. After all, for companies any balancing in money distribution is good as long as they get to retain their old earnings or get better earnings. But I think it's sound that a change is on the way. I also wonder if Alfa Romeo might be able to get some of the historic team money now, seeing as Alfa Romeo as a brand has a really long history in F1.
mcbhargav
Posts: 1,332
F1 needs resurgence of either Renault or Mclaren before they could threaten Ferrari's position.
Pistonhead
Posts: 556
Yes, I agree, though a boost of top line revenue would help that cause too !
Pistonhead
Posts: 556
Calle I agree - it brought it home to me when I went to see the Mille Miglia, we went to Milan to see the cars and sat in a beautiful plaza next to an old Alfa car - it was a fantastic GP racer and until that point I hadn't realised quite how famous a brand AR is. It's an odd mix, trying to respect the past and yet stumbling in negotiations with the likes of Silverstone and other, 'founding' tracks. Income redistribution is definitely one of the biggest things wrong in F1, Liberty have to fix it, not fudge it.
RogerF1
Posts: 501
Pity Ross Brawn doesn’t run F1 in its entirety, he’s the only one who talks any sense.
Ram Samartha
Posts: 1,172
It's good though that he is one of the top execs at Liberty. With his history in the sport and with Ferrari in particular I think he has a good shot at working a deal that is good for both the team and the sport.