Sport and greed

I wrote somewhere the other day that Formula 1 was “my sport”. It is, in my opinion, a sport that is owned, not by mean Scrooge-like characters who are in needs of ghostly visits in order to find redemption, but rather by all of us; by anyone who has an interest in, or passion for, such activity. That is an ideal and, alas, people are not ideal.

There is no clear definition of the word “sport”. Most of the definitions offered feature the same themes: physical exertion, skill, competition, entertainment, recreation, diversion. The word derives, so they say, from the verb to disport, which means to divert and amuse oneself. Other definitions include the fact that a sport has rules or customs to be followed.

But the underlying truth is that like culture, art and music, sport as a concept belongs to us all; to society. Sport has always been a social activity. It has been a way in which groups of people have bonded together, no matter what social class they come from.

When the Council of Europe tried to define sport its European Sports Charter in 1993 it came up with: “all forms of physical activity which, through casual or organised participation, aim at expressing or improving physical fitness and mental well-being, forming social relationships or obtaining results in competition at all levels”.

The social roots of sport are reflected in the names of teams: cricket was organised by county, football by city, town, county and in the case of Nottingham, by a forest. Others were groupings of people who worked in the same businesses like the Arsenal, Hamilton Academicals or Atherton Collieries. Others were based on the day or the place that the club met, like Sheffield Wednesday, Accrington Stanley or Plymouth Argyle; others did not play in the same place and so became Rovers or Rangers. There were clubs that adopted words or symbols expressing their nationality, the Albions, the Thistles and Tottenham Hotspur being good examples of this. As football grew so local teams would join forces to create one team which was big enough to represent the city in nationwide competition. Thus were born the Uniteds. I use Britain as the example but it is true everywhere.

In the world of chariot racing, in Roman times, the competing teams became so powerful that they became political parties and the sport transcended the races and started to affect society in general. The sport became too big for its boots and the emperors took control to stop politicking and even rioting.

Grand Prix racing has its roots in the Gordon Bennett Cup, which was a competition between nations. And while F1 is a modern invention, the tribal behaviour of fans is evident nonetheless.

So a key element of all sport has been the social one, not just on the field but also for those who came to watch. If the games happened on common land, then they were free, but when private land was used, the owner of the land was entitled to ask for money.

The widespread commercialization of sport which began in the 1960s created clashes and legal conflicts: who owned what rights? Was it those who competed, those who organised or those who commercialised? Sports wanted to attract money and while fans accepted to pay to go to stadia to watch games live, they have baulked at payTV, although the concept is basically the same. In earlier times, sport wanted the publicity that mass media provided and so sport on TV was free and now – not surprisingly – people don’t like paying for it. Sport, they believe should be free, at least on TV. As the world changes, so the financial models have altered as well and in the end market forces will prevail. If financiers suck all the money out of a sport that sport will fail. It is as simple as that. The happy medium is to find someone who gets a kick of building up a business, without the need to screw every single penny out of everyone. Alas, this is like a benevolent dictator, a hard thing to find.

People in finance don’t often care about society. They are greedy and anti-social and in some cases sociopathic, and they don’t much care if the world doesn’t like them. They hang out with one another, pretending to be friends but will slit each other’s throats in business. The irony, of course, is that money is only important when you don’t have it and the smartest people realise this. Collecting cash, houses, cars, Fabergé eggs, racehorses or whatever is purely a reflection of ego or insecurity. It is a pointless exercise, as one descendants will only waste the wealth, as they grow up without understanding of what money means. As Bill Gates and others have demonstrated, using your money to the benefit of society is a far smarter way to live.

It was a lesson learned the hard way by Ebernezer Scrooge but, who knows? Christmas is coming and perhaps ghosts of Christmas past, present and future will drop in to see those who exploit this great sport and get them to see a bigger picture…

135 thoughts on “Sport and greed

  1. As I read my Plutarch, the running of empires is a game of balancing the power and interests of various parties. When other senators asked their colleague Harry Truman why he spent his evenings reading about the ancient Greeks and Romans, he answered that it was so he could better understand what’s happening in Washington. Of course, in today’s F1 we have the added issue of the collapse of the rule of law, where one man, Gribkowski, rots in a cell while the profligate offspring of his ‘victim’ waste their millions on mansions.

    1. Good point, Mitch. What we’re seeing today is nothing new, even though it is for us. It’s happened for centuries and millennia throughout the cycle of history.

      When entrenched interests prohibit necessary change, sports and nations go into decline. I see that every day in my country, America, where the notion of free enterprise and social advancement through merit has been replaced by an extremely powerful plutocratic “kleptocracy.” Same as in Formula One.

      Unfortunately, as I read history, the declines tend to continue until they’re changed by unforeseen cataclysmic events or terminal irrelevancy.

      Sorry for the cheery thoughts.

  2. I long ago decided that should I ever find myself with considerable wealth (highly unlikely unless I write a hit film score or win a lottery which I don’t currently enter) then my children would not inherit the full amount of that until they were at least 40 years old, by which time they would hopefully have some idea of the value of money. the difficulty would be preventing them borrowing against that inheritance in advance…

  3. In a perfect world Joe .. I’d be in agreement with you 150% .. and then some ! The problem is … we live in anything but a perfect world .. Add in the fact that at this point in history the world around us has bought into the ” NoBrow ” zeitgeist , lock stock and barrel [ Talent , quality , ability , truth and reality do not matter ; The only thing that matters is does it make a profit … at any cost * ] .. and like it or not F1 has truly become part and parcel of that whole philosophy .

    Now if you were to put up a fight in order to try and bring at least F1 back to ‘ Sport ‘ would I join and support you ? Well yes … despite the obvious futility of the likes of you and I [ and all your readers/subscribers combined ] trying to change things .. you’re damn right I’d be the first in line to sign up . Why ? Suffice it to say .. Child of the 60’s .. always ready for a Just Cause fight .. and enough of a Privateer/Ronin to never say no when a legitimate cause is placed before me that i may have a positive effect on !

    In closing though … damn fine essay … I love what you’re saying .. wish it could become true .. errr .. but … well … you know . But know I’m on your side with this one regardless

    * Fact is in this ” NoBrow ” world we’re living in …. nothing belongs to ‘ us ‘ anymore . Everything at this point including every aspect of politics [ witness whats going on here in the US ] sports , the arts etc now belonging to a very few multi billionaires who’s only agenda/concern is filling their back pockets and gaining as much power as possible … preferably at our expense

  4. Most of us can think of those we’d like to see wrapped in chains (except for those few who might like to be wrapped in chains).

    As for paying for TV, I have to, to watch F1. How much is the BBC’s TV license fee these days?

  5. Lots of stick for the finance people here, Their responsibility & remuneration lies in improving financials which is obviously a good thing. Agree – they do come off as being greedy on the outset for trying to squeeze maximum out of the system today. The art is in keeping the system sustainable and profitable on the long run. This dosen’t necessarily mean maximising gains today but who understands this anyway…

    1. Also it’s important whose ‘improving financials’ we are talking about. I am in favour of investors earning returns on their money but the current set up rewards CVC and BCE excessively, and unsustainably.

  6. “…and in the case of Nottingham, by a forest.”

    Thanks, Joe – that gave me my first laugh of the day.

      1. If you found that funny, you’ll love the irony of Nottingham Forest’s City Ground being situated outside of the city, on the south bank of the River Trent, whilst our neighbours, Notts County, who play at Meadow Lane, are situated north of the Trent, in the city.

  7. “People in finance don’t often care about society. They are greedy and anti-social and in some cases sociopathic, and they don’t much care if the world doesn’t like them.”

    Give me a break; you are usually much better than to write such a thing.

    1. Obviously it depends on the financier, but in my experiences in F1 I am not impressed. I am sure that there are some people who are sweet and cuddly as well

      1. But why blame the CVC for finding a sweet deal?

        Was it not the teams that sighed in the bad deal in 2010 and in 2013?

        10 of the 11 teams are neighbors yet they could not stick together, there is no defense for that, they deserve even 80% taken out of the sport.

          1. I still do not get why a breakaway series is not created for everyone but those that oppose the budget cap. The sport would not last long with Red Bull, Ferrari, Mercedes and McLaren racing each other, and I doubt anyone else would enter it given the alternative series and the ridiculous spending of the 4 teams.

            Someone give me a pen, paper and your cheque book.

              1. The contracts are with companies Im sure. Wind them up, start again. Whats the value of a contract again in F1? The numbers work, and it doesn’t take a rocket scientist to figure that one out.

                Take out the unnecessary middle man. If the teams are willing to start from scratch as a racing series and a brand the end result would be a greater share of revenue, a fairer distribution of prize money amongst teams and fancy words like going concern, positive cash flow and solvent thrown around. You could even start up a solid social media department to cater to the 1.25 billion cellphones currently sitting in peoples pockets just for good measure.

                The knock on effect would be more entrants into the sport, cheaper promoter fees, cheaper tickets. Everyone wins but those raping the sport at present – isn’t that what we want? Perhaps 90% revenue for the teams and 10% to run the sport. Back to promoting and growing the sport, not CVCs balance sheet.

                Yes I’m sure a reduction in costs will result in a reduction in technology applied to the cars and make the cars somewhat more “basic”. So the greater onus is once again put on the driver, not the winter results of each factories wind tunnel and CAD suite team. Once again, isn’t that what we want?

                1. f1yarn, Yes, the contracts are with companies. But when its the likes of Mercedes AG (not just its subsidiary) and Ferrari as well as McLaren Group who signed up, you can’t seriously say they would let the company go bust and aviod liability?

              2. Contracts like this don’t mean anything to big corporates, they could be described as ‘best intentions’ at the time, if Mercedes or Red Bull want to walk they will. Hadn’t Toyota signed up to the concorde agreement until 2012, but pulled out in 2009 regardless?

                  1. What is your solution then Joe? Having teams operate under a budget cap only solves half the problem. A large amount of profits will still continue to leave the sport and the direction and strategy of the sport will still be determined by a hedge fund whose sole objective is profit maximisation.

                    The only difference between my proposed new series and all teams operating in F1 under a budget cap is that the new series zero funds would go to CVC or Bernie.

                    Lets be realistic – CVC aren’t going to forgo profits or sell the sport at a reduced price for the greater good of the sport, so do we just accept that 35% of the sport will always been owned by a private equity firm whoses interests are not consistent with that of Formula 1?

                    1. Yes Im sure that will happen eventually, but the 35% stake has to be sold to someone. Whats not to say we don’t have this issue with the new owner?

                      I come here for your educated opinion Joe, which I do respect, but in this instance I wish the struggling teams would unite, grow some balls and start a new series. The only difference between that and their current situation is light at the end of the tunnel.

                      Short term sacrifice, long term gain. At the moment, most teams existance cannot be guaranteed past the short term.

    2. On the contrary, I think Joe pretty much hit the nail on the head with that comment. If it were not true, then surely the financial meltdown of 2008 would not have happened? After all, it had it’s roots in the actions of rapacious financial dealers who just didn’t care about the consequences of their actions on society in general, and I have not seen one iota of regret expressed by anyone in the financial sector for the misery that their actions have inflicted upon the rest of us.

      1. The 2008 mess was caused by bundling sub-prime mortgages . The FT reports that US companies are now bundling sub-prime loans to buy cars. Greed always beats morality, at least in the financial world. Concerning rich kids, my experience has been that American parents give their kids possessions, but they have to do work of some kind, at home or out, for cash. Continental parents tend to give their kids wodges of cash.

      2. That’s like saying the great depression was born out of a single event, the stock market crash. It might suffice for teaching young children, but it’s woefully inadequate discourse for adults.
        Had the US regulator, the SEC, a combination of brains and enforcement powers they would have been better placed to halt the credit bubble. Had the US central bank not been pricing debt so cheaply, there’d have been less of an appetite for it. Had US lawmakers any sense they wouldn’t allow a defaulting borrower to simply walk away from the house and not be accountable for the amount owed, then there wouldn’t have been a liquidity crisis. Had governments been smarter they’d have enforced Basel II accords to ensure sufficient capital was on hand pre-GFC and not waited til 2010 to start on Basel III.
        It’s an easy and populist view to blame financiers, but nobody’s interested in blaming their elected representatives for long term indifference; or greedy, stupid borrowers who took on debts they couldn’t possibly afford and caused the collapse. The crash reflects just as poorly on the greedy Goldman Sachs types as it does on the fools who bought houses they could never afford. We just like to hiss at a particular villain more…

    3. If the words “don’t” and “often” are switched, the primary import is intact and the overbroadly vilifying overtone avoided. In keeping with my impressions of the author formed over time, that’s what I’ve assumed was meant.

    4. I worked in finance for almost a decade and I’m struggling to find fault in Joe’s summary. Not all,of course, but most people I worked with didn’t give a flying fook about anything but their bonuses. Any collateral damage was dismissed. “Dumb suckers, not my fault if they’re too stupid to have seen the opportunity or too much of a puss to have taken it”. Unlovely folk but that attitude does make one rich!

  8. I remember a tale of a few years ago when a friend of mine was invited to spend a long weekeknd on a big yacht in the Med off Monaco. I turned out to be rented and had belonged to EJ previously.

    This was at a time when EJ was on the TV bleating about how difficult it was to raise sponsorship for his team and how difficult it was to make ends meet.

    I said to my pal “Did he sell the yacht to raise money for his F1 team?”. My pal said “No, he sold it to buy a bigger, better, more expensive one!”.

    1. I think it was Nigel Roebuck who once said of EJ that while Frank or Ron would spend their last £10000 in pursuit of victory, Eddie would probably spend it on getting his Sunseeker cleaned.

    2. We need to remember that a large share of F1 revenue going disproportionately to the top teams has made numerous team principals and drivers rather rich too. Another reality check need here too?

  9. Well said!

    I don’t object to F1 being costly to watch, it is the very top tier of motorsport and engineering excellence.

    I do object to the money raised from my tickets and Sky TV being used to fill the boots of some faceless suit.

    1. “and engineering excellence. ” ; really? Engineering excellence puts people into space for months; we’re talking about pushing a computer round a track for a couple of hours.

  10. As the chariot racers evolved into political entities, so Formula one racing has developed to become a platform for business with driver’s and constructor’s points tally becoming an alternate stocks and shares.

  11. 1. Plymouth Argyle got a mention

    2. Joe used the word “football”

    Happy days….!

    On a serious note, Agag strikes me as someone who’s a money maker, but with more ethics than the likes of Vijay, Flav….the list goes on. I guess he could see the non-sporting side for what it is.

  12. One of my favourite quotes is Hemingway

    ‘There are only three sports: bullfighting, motor racing, and mountaineering; all the rest are merely games.’

    1. Newspaper sports departments always refused to handle chesd, which they said was not a sport but an intellectual pursuit.

  13. Joe You are one of the best writers I have ever had the pleasure to read.. The F1 community should be proud of you, I know I am, excellent piece!!

  14. Hi Joe,

    As always, I’ve been reading your articles and find them fab. Just a quick question; in relation to F1 generating $1.8 billion in revenues, is that revenue or profit? I’d like to know the net profit it generates and to distinguish who gets what.

    Btw, I agree with your posts regarding this.

    Cheers

    1. I imagine FOM has fairly high opex and modest capex costs to the business, but it should still be generating hundreds of millions in pure profit (if not over a billion).

  15. “[W]hile fans accepted to pay to go to stadia to watch games live, they have baulked at payTV, although the concept is basically the same.” If by “the concept” you mean visually looking at sport, yes. But one can hardly equate a television show with live sport. The cost of admission buys more than the right to look at the contest, agreed?

  16. Why do the teams and the FIA let them get away with it?
    These things happen because unfortunately, they’re allowed to happen…

  17. The enjoyment of sport, and sometimes participation in sport, has always been a public domain. Rarely has “sport” been controlled by public entities, but usually enterprise systems with a public transparency responsibility. How F1 evolved (or should it be devolved?) into secrecy and private deals (thank you Bernie!) has been one of the primary reasons for the fix the “sport” currently finds itself in.

    We as the “participating public” only have three options:
    1. Attend and pay for the privilege,
    2. Pay for the privilege of watching it on TV. (here in the US we’ve been paying to watch on cable since day 1).
    3. Not attending or watching.

    Nice read, thank you Joe.

    1. Fortunately there is a fourth option – the interwebs. You can find the live Sky broadcast pretty easily. I know, I know, I shouldn’t do it, but still, if you’ve ever watched the American coverage, you would know I was justified.

      Great posts lately Joe. Thanks.

      1. The thing is, whilst we’re bringing economics into it, entertainment is currently in what’s described as price disequilibrium. The willingness of punters to pay is not met by the willingness of the IP holders to sell access. It’s the same thing with movies, television shows and music too. The internet has dropped the value out of those products because people can illicitly obtain them for free with low risk of detection.
        I find it astonishing that I can’t now, through my phone, tablet or PC, watch F1 live via FOM and a year subscription. FOM have the capacity to, very easily, offer a streaming experience with a choice of commentary, camera angles, etc and make it available worldwide. Why don’t they?

  18. “[W]hile fans accepted to pay to go to stadia to watch games live, they have baulked at payTV, although the concept is basically the same.” Well, if the concept is watching sport, perhaps the concept is the same, but one can hardly equate watching a broadcast with attending an event. The ticket buys more than just the right to watch the contest. There is a different sensory experience, with a correspondingly different market value.

  19. There is some confusion here.

    Formula 1 is not the sport. Motor racing is the sport. Formula 1 has its teams, tracks, rules and championship. Those things are owned by the people who control them. That is what ownership is.

    Motor racing is not owned by anyone and can be participated in by anyone who has the wherewithal. People can make their own rules and organise their own championships as they see fit.

          1. With deepest respect Joe, there would be no racing without the infastructure of business; all the racing is is the showcase. Business (deals etc.) are being done (or at least thought about) during the races – you know they are.

            1. Of course not, but there is a difference between taking a sensible profit and raping a sport. Not only is every penny being sucked out of F1, but worst still they are pushing up costs in GP2 and GP3 ( because they can). These are supposed to be a place where youngsters can learn but this means it is beyond the reach and the majority.

              1. I agree with you Joe; and what’s happening is BAD business, not GOOD business. Sport (F1) is but one manifestation OF business.

      1. Yes; it IS a sport as well as other things. The oft-quoted FW seems to sum it up best; “for 2 hours on a Sunday afternoon it’s sport; the rest of the time, it’s business”.

      2. Formula One is also the business of sport.
        CVC’s ownership came about due to the collapse of Kirch Media,
        why doesn’t Bernie buy back his shares from CVC and be done with it…

      3. Formula one is a series, whose assets are a web of contracts that create tremendous value for its owners. If some entity wants to create a competing series, and there are racing teams and circuits willing to participate in that new series while not falling afoul of FOM contracts (if they are parties to said contracts) then they are certainly free to do so.

        1. Only this morning I was shown a very interesting infographic on that subject Jonnowoody (on the WTF1 site).
          From that infographic its pretty clear that drivers in motorsports are as much athletes as marathon runners, sprinters etc. They have to train intensively to be fit, they lose incredible amounts of water during the race/rally stage, and have to cope with forces stronger than most other sports.
          Sitting down or not is not the thing that defines what is a sport

      4. For example, “English Premier League” isn’t a sport. “Football” is the sport. Wires are getting crossed here.

      5. One thing that’s surely not a sport is hunting… for it to be a sport, all participants must know they’re participating in a sport…

  20. @GeorgeK You are absolutely right. We have paid to view F1 in The US ever since I can remember…We even pay to view commercials ….

  21. “Collecting cash, houses, cars, Fabergé eggs, racehorses or whatever is purely a reflection of ego or insecurity.”

    Quite a harsh and ill-founded generalisation there Joe. I personally collect properties, cars and motorcycles, simply and solely because a) it gives me pleasure, and b) the properties give me income. I own a lot of each category. I am however neither egotistical nor insecure.

    1. I (even you) don’t need things like that to “feel” pleasure, therefore by default it must be your ego that is at work. It is a matter of how you allow your mind to operate.

      Income asides, If you had the means to acquire anything in the World you wanted, you’d quite happy not having those things, simply because you would know (feel) you could have them at any time you liked. It’s not he things that give you pleasure, it’s your attitude towards them (ego)

      😉

      1. What a ridiculous comment. It’s not for you to judge what gives a man or woman utility, and suggestions to the contrary are usually from the sorts of people who feels cars are just about getting from A to B or spending money on a quality watch is a waste. That is, people one should always ignore.

  22. Are F1 teams contractually prevented from creating a competing series, somehow ? I know those teams cannot even agree on the time of day, but you would think if they were that tired of only getting a small slice of the pie and being governed by scrooges, it would not be too hard for them to band together and create a “new open wheel series” and get a bigger slice along with track owners… Fans surely would follow… CVC only owns the name, does it not ? I know that F1 provides logistics, but it seems doable…The fact they haven’t done so suggests they’re not all that unhappy at being fleeced 😉

  23. Joe, I greatly appreciate your articles, in particular the ones about the financing of the sport .

    Personally, I think one should go one step further, and question a market system that allows for making money from money .
    The faceless bankers and brokers you like to blame (and so do I), are just the corrupt henchmen of a corrupt system .

    Third party financing was created to benefit companies, not to become a business of its own, and therein lies the rub , I think .

    It’s the age of the middlemen, and their modest services are overvalued and overpaid .
    CVC’s clients are not the one who benefit, CVC does .

  24. If anything, Joe’s is a wistful lament that stops short of unveiling the threat to F1 posed by CVC’s strategy and conduct in all its starkness. The public of F1 fans do indeed own the sport in the blunt sense that they are the market for it, and will decide whether the product is worth buying or not. But the financial structures that CVC has built around its F1 holdings are a conscious effort to decouple their revenues from the market’s influence. They are designed to earn money for CVC based on the quality of the product when they put the sport in hock, relieving them of the responsibility to invest in maintaining or – God forbid – improving the product. They have probably made back their original investment several times over (is that correct, Joe?) and don’t really have much stake in securing F1’s future. The clearer it becomes to the fans that they cannot use their market power to make things better, the faster they will desert the sport. But perhaps CVC would be just as happy to see F1 collapse and take the tax write-offs from the losses, in much the same way that a lot of us suspect that Bernie wouldn’t mind seeing F1 fall apart after he goes as evidence of his unique greatness. ‘Après moi, le déluge’, and all that…

  25. Wow; what a great read. A thought-provoking piece. I agree; it IS a sport and it’s my sport. OK, it’s true that there are some hard-nosed characters out there that are destroying my sport for their own benefit and, who knows, they may actually succeed and destroy it for good. However, one thing that they can’t destroy are the memories of the last three decades – Senna, Prost, Hakkinen, Schumacher…….wow; how lucky have I been. Still, I guess I’m just getting nostalgic and the powerbrokers would likely sneer at me and suggest that I get real, forget the nice warm memories and that, at the end of the day, it’s about one thing and one thing only; $$$$$££££.

  26. Criticise the owners all you wish but the sport effectively sold out, it’s a victim of its own appalling decisions.

    And besides, it’s their money, they’re allowed to burn it how they wish without your frowning. Don’t want something to die? Don’t sell it. Don’t want teams to go bust? Don’t put them in the position of having to spend $30m per year on whacky engines.

  27. Once again Joe has expressed so eloquently the prevailing climate in F1 but when will the winds of change blow and from which direction? How much influence have the likes of Daimler AG to effect change? How comfortable is their board with all that is unfolding? Corporate Social Responsibility (CSR) is an important driver where Daimler AG is concerned as is the determination to demonstrate that the Mercedes brand is able to beat the best. Audi, Toyota, Porsche and Nissan see WEC as the platform for their brands and their technologies. WEC does not have the penetration that F1 currently affords where viewing audiences are concerned, but there again is F1 in its current form capturing the attention of the youth market that will mature into tomorrow’s purchasers of the products and services which F1 promotes?

  28. I’m interested to know how the feeder series such as GP2 and GP3 manage their championships, since teams must require a significant amount of money to compete and yet there is very little TV coverage or exposure for sponsors. Are there any lessons that could translate into F1?

  29. Hi Joe,

    What was the revenue distribution/structure like, say, twenty years ago and was it also skewed massively to the top teams?

  30. If you flip this on its head, i.e. If Bernie hadn’t sold to CVC, and F1 Group was ‘not for profit’ and returned the vast majority of the TV money to the teams, would the result be any different?

    My guess is you may have more teams, but even some of them would end up going out of business. There will always be bad businesses.

  31. There is no such thing as free TV in UK, we have to pay substantial annual licence fee. Unfortunately BBC choose to feed us endless cheap programs about cooking, chat show, sit coms etc., and then repeat them ad infineatum. , It has sold out the right to full live F1 and Moto GP.
    Yes, we have ‘a choice’, take it or leave it, i.e. NO TV at all.
    Yet again, it’s financial interests that ‘steal’ the rights to sports broadcast to make more profit….
    The way F1 is going I might well make my choice…., NO TV…:-(
    Regards,
    “Martin”

    1. Let me correct you:

      1 The BBC annual license fee covers Radio and TV and now has to include the World Service. The fee itself is no more than in other countries which countries permit advertising (ie France), something the Beeb generally doesn’t have. You think there wouldn’t be a TV license fee without the Beeb – dream on! It’s still the finest broadcaster in the the world – bar none

      2 Its remit is to provide a wide range of programmes – including, but not exclusively, sport

      3 BT seems to be awash with cash – wonder where that came from? And have you seen the viewing figures for Moto GP?

      The Beeb can’t compete – the F1 deal is pretty good when you think about it – its free! Point the finger elsewhere Martin. Be fair.

      PS I like cookery programmes and sit coms too!

      1. You’ve contradicted yourself. F1 on the BBC is not free, precisely because of the licence fee. When F1 was on ITV was the only time it was truely free-to-air in the UK. But their coverage was shocking. I’d accept ads on the BBC if it killed the licence fee. I’m off work this week and if I see another cookery/house decorating programme on Beebs 1 or 2 I will scream! 😉

        1. You’d pay the license anyway, ads or not. Believe me. F1 doesn’t really sit well with BBC, despite what they say at the moment. Very expensive, the Tony Hall (DG) prefers opera – far more cultural wouldn’t you say? Unless CVC/BE do a better deal next time prepare to pay £500/yr to SKY!

      2. I think what Martin means by ‘cheap’ is ‘dumbed-down’ in order to compete with the commercial channels – something that the licence fee should be used to avoid.

        That is, the BBC should focus on producing stand-alone quality programs which do not have to ‘compete’ with the other channels. Sadly, the BBC has to deal with the ‘real’ world – much the same as F1.

      3. @ Stephen Deakin:
        So what does it cost you for the Beeb license fees?
        I am spending in excess of $150 dollars per month for a combined Internet, TV and Phone service. And the internet is to put it mildly, a bit slow.

        1. The Fee is now £145/year (£12/month!) per household. Apart from BBC TV this also pays for all BBC Radio stations (including local radio), The World Service (from 2015) and their on-line services. Many programmes on BBC Radio are available as free pod casts including ‘The Chequered Flag’ which reports on F1 (I’ve just listened this morning to the US Preview – there will be a race round-up on Sunday evening). In the UK most areas are now covered by the terrestrial digital service which includes the main BBC and commercial channels such as ITV (not SKY of course) – this is free.

          Go outside this service and you pay whatever you wish on internet or satellite – bearing in mind that you pay the license fee whatever’s the case. If you want F1 on SKY satellite will need to subscribe to SKY Sports – there are offers but the ‘normal’ rate is around £500/year. In terms of viewing figures the BBC coverage can average over 3m SKY well below 1m – you will see why! In certain areas in the UK the internet can also be slow – in rural France now painfully slow at peak times.

  32. The problem with the financiers is that they’re lower on humankind’s ladder of development than is needed.

    CVC and their ilk are predator-hunters who just take what they want, with their dead prey being nothing to them but an inconsequential side effect. What we need is the next level up the ladder: farmers who grow and nourish things.

  33. One of the problems facing F1 in terms of television, unlike a league like the NFL, is that it is very difficult to get huge advertising partnerships with such a disparate and segmented audience. It makes sense for some heavily US-centric brand to spend $30m on NFL game time TV advertisements, but the same cannot be said for F1. For sure there are international brands everywhere, but their most effective ads are nationally or regionally focused.

    I wouldn’t say every car collector is doing so out of ego. Some truly love cars and their life revolves around them. So, it makes sense they would have a number of cars. Faberge eggs on the other hand…(though could be an investment in some cases)

  34. An eloquent and passionate piece. But I’m not sure what is going to change the current situation in F1. Maybe the recent collapse of 2 teams and perhaps a couple more might, unfortunate as that is, be the catalyst we need to trigger the change required. I can’t see CVC changing its agenda, or the key teams agreeing to slice up their share of the pie for a more even distribution. I just hope it doesn’t turn into a farce.

  35. There was a fascinating “thought for the day” on BBC R4 around a week ago about the slow and painful death of consumerism – the wonderful post-cold war era ideal that the people, as self-interested consumers, can shape society and the world. Driven by the tail-end of the television age, and its one-to-many relationship with us all, consumerism really did drive some incredible advances and transformations for a time.

    But the jist was that two factors are combining to end consumerism as a force for good. Firstly, due to its inherently self-interest and short-termism, it has consummately failed to fix or even really start to address the biggest issues facing humanity like global hunger, poverty and climate change, and it never will. Secondly, the dawning of the internet age over the past two decades and its many-to-many relationships is slowly eclipsing the one-to-many relationship we enjoyed with television as our main source of news and entertainment. There was some hope that these two factors will slowly combine to begin solving the aforementioned Big problems (although consumerism, being what it is, won’t die without a fight).

    I see some relevance to your thoughts about sport. They begin as a wonderful many-to-many relationships between people with a common interest. Consumerism then molds them into a one-to-many relationship driven enterprise, eventually solely about stripping as much money from consumers as possible via advertising, ticket prices or pay TV.

    I think this modern age is moving a threshold. Where once we might have been happy to just be “consumers”, now we want (or even expect) to be at least partly “Citizens” or even “Participants”. Even if it’s just tweeting your favourite sportperson or writing a blog about last week’s game, people are less happy to spectate – they want involvement and ownership. Sport has been reasonably slow to catch up with this – and many are moving in the opposite direction, with F1 possibly the worst culprit by assuming we, the fans, are happy to simply watch what we’re told to, consume what we’re given, accept what is offered.

    Being an F1 driver is as unobtainable as it ever was, but so is being a top professional footballer – that’s not what it is about though. We, as fans, want to be entertained but also play a part, even a small one, in what we are seeing. Sport has to recognise this, or it will be left behind by the accelerating internet age (and the social network age it is evolving into).

    F1 has its own unique challenge because it is not a tribal loyalty to a particular identity (town, county, nation), but the sport itself – and the underlying attraction of engineering, speed and/or danger. No one (or not many of us!) would stop watching F1 if Lewis Hamilton retired, or even if Ferrari quit, because it is the sport we’re here for. I don’t think the powers that be understand any of this, whether it be the changing wants of their audience or the reasons for them watching in the first place, and therein lies the threat.

  36. I like the fact that someone here has mentioned that F1 is a part of motor racing and it is motor racing that is the sport.

    I leads me to think that if F1 (as it stands today) goes down the pan something similar will soon replace it with the potentiality to be better.

    To paraphrase…….F1 is dead, long live F1.

      1. I agree Joe, but F1, Formula One, whatever, is all about trademarking, branding, and ownership, i.e. the business, not the racing.

  37. Entirely true, almost all businesses that get snapped up by these “vulture investment funds” end up massively in debt and spending the next decade or so trying to get out of it.

    Not a pretty picture for F1’s future. If this continues, the worst case scenario would be four, maybe five teams in a few years’ time (and I really mean two years or so): Mercedes, Red Bull, Ferrari, McLaren (provided Honda stick to their guns) and maybe Williams on the current upward trend they’re in. If push comes to shove, Lotus and FI are probably not going to make it. Even McLaren will need Honda to remain competitive. These teams would then need to provide four cars to fill up the grid and given the current state of affairs, that would mean that McL, Williams and Ferrari would simply be back markers (Williams maybe alternating with Red Bull, but given the latter’s funding that would not be for long). That would devaluate F1’s image and therefore value dramatically, which would probably precipitate a hasty departure of Merc, Red Bull and Honda, which would leave F1 with… An alarmist and unrealistic picture (hopefully) but it serves to indicate the slippery slope F1 gets on by talking about third cars.

    I reiterate my belief that some sort of “tax” or simply an entry fee based on the amount a team invests in R&D instead of past performance with excess funds used in some sort of redistribution (if only for emergency measures) could work. It might even be easier to get through than a cost cap, since the entry fees are not up for a vote by the teams (I think).

  38. “People in finance don’t often care about society. They are greedy and anti-social and in some cases sociopathic, and they don’t much care if the world doesn’t like them. They hang out with one another, pretending to be friends but will slit each other’s throats in business. The irony, of course, is that money is only important when you don’t have it and the smartest people realise this. Collecting cash, houses, cars, Fabergé eggs, racehorses or whatever is purely a reflection of ego or insecurity. It is a pointless exercise, as one descendants will only waste the wealth, as they grow up without understanding of what money means. As Bill Gates and others have demonstrated, using your money to the benefit of society is a far smarter way to live.”

    Joe, I might guess that you and I have grown up with people who are part of the world of finance. Whether that is the case or not, you understand in exactly the same way I do, their contribution to society and what it represents and you have expressed eloquently.

    1. The problem isn’t that there are a bunch of materialistic snakes around…

      The problem is that modern society has rules designed to suit the snakes, not suit the rest of us…

      I think it’s mainly because of who owns media (who tells people what reality is, since nobody knows very much first-hand) and gov’t (where the rules are decided), but there might be other reasons too, beats me…

      1. I cannot help but think that it also has to do with Capitalism as a system not having any competition or boundaries right now. To quote Dame Judy Dench’s “M”: sometimes I miss the Cold War. Back then the West had to prove that its system worked better than the other one. That kept the inequalities that seem to be inherent in runaway capitalism in check. Actually, Karl Marx analised that quite well in Das Kapital (before he went off the rails with his Communist Manifesto). Basically, capitalism only works for society at large if its kept in check somewhat.

        1. That’s exactly right.

          The crazy thing is that we know how to do that, we used to do it. But after Communism fell apart, the song abruptly changed. It used to be “Capitalism is the least-bad economic system and must be kept honest.” Then, all the sudden, it became something that Moses supposedly brought down from the mountain, the “invisible hand” that automatically corrects all flaws better than mere humans possible can, and thus is not to be questioned much less kept within any bounds of decency… which is completely nuts, especially given what we know. Getting regular people to go along with this nonsense has to be the biggest and most sadly-successful con job in the history of mankind.

  39. Joe any idea if we are at the beginning of the end or the end of the beginning of the current problems?

    There must be some voice of reason in the F1 paddock what is good for “all” is good for the “one”..

  40. Joe any idea if we are at the beginning of the end or the end of the beginning of the current problems?

    There must be some voice of reason in the F1 paddock that believes what is good for “all” is good for the “one”..

    Please delete the other post. Typed too fast.

      1. Great ‘soap’ though Joe – man in big house (Bernard Eccles-Cake) and his dysfunctional family. Can’t wait for the next episode!

  41. WOW
    Why do you guys watch F1 if you all hate the people involved, i agree there are a few who you know they are lying because there lips are moving, however please kindly remember the many many millions the F1 folks raise for charity, including Joe who i have had the pleasure of kicking his ass in charity karting events.
    Howard Scaife

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