Subtleties are often missed in Formula 1 reporting. Yes, it is true to say that Ron Dennis has agreed to buy a majority shareholding in the McLaren Group (which does not include the road car company) but this does not mean that Dennis has bought the shares. If you go into a shop and ask for a pot of marmalade, it is not your’s until you have paid for it… In the case of McLaren shares, this purchase will require raising hundreds of millions, and if you have ever tried to do that you know that it is anything but easy. So will it happen? We will have to see. Ron is not a man given to wild statements and the firm has a lot to offer so perhaps finding the cash may not be as hard as one would think, but then if it was going to easy, would it not have been done already?
So the story may not come true. It happens sometimes that news hounds move faster than events and do end up being wrong. It is a risk of the game, but that usually takes time to come to light. Last week we had a string if stories that were debunked before they had even taken off. It was reported that Bernie Ecclestone was saying there would be a race in Qatar. This week he is reported as saying that it cannot happen. Last week there was going to be a race in Korea. This week there isn’t? Truth is that there isn’t much real news.
Steve Nielsen has left his role at Toro Rosso to become Sporting Manager at Williams. The Ferrari team has had a Christmas Party and the latest team boss has said that the team must try harder.
Wow! That’s leadership…
Bernie Ecclestone says he is going to propose a return to old engines.
Will he be saying the same tomorrow? And even if he does, who will vote for that except the teams that are not competitive with the new engines and don’t have the ability to do a better job.
I cannot imagine the FIA agreeing to undermine what little credibility it has left in F1 circles by voting to cancel its own terrific new rules.
And, in any case, is the work of the Strategy Group even legal under the laws of the land?
joeblogsf1 
There’s always a lull after the season has ended and before testing begins next year where all the silly stories come out because there’s nothing else to report. As for Ecclestone saying about a return to the old engines – I’ve long since ignored any statements that he comes out with, or at least, I’ve looked in the opposite direction to try to determine what he is trying to deflect our attention away from. Either that, or trying to gain some leverage in another area.
Other than that – same old, same old, for this time of year.
“Interesting” that he’s not buying the road car side of things. A bit like buying a mill without the millstone…………Ah, maybe that’s the point!
Hm, well, buying “just” the majority of the rest is probably already a big chunk of money to find Robert. Sure, if Ron manages to find the money for this step he will surely look at the rest too. But not in one go.
Shades of when Lotus Cars ‘split’ from Team Lotus way back when..
If you want to see Senna, Prost and Piquet racing today tune into Formula E.
Trouble is quiet engines a slow top speed and dull looking cars…
Merry Christmas everyone!
Formula E reminds me a lot of formula ford but with a rather different sound more like hair driers than engines. Sobering to think formula one could look like this on a few years!
Ha ha yes ‘throwawayculture’ you’re spot on they do sound just like RC cars. I’m of the generation that had a Tamiya kit RC car so it takes me back. As an aside I guess it would be technically possible to build a remotely driven F1 car. Perhaps someone more technical will correct me but surely if military drones can be flown with great precision by a guy in a hangar several thousand miles away then 20 drivers on a stage at a circuit could race real sized cars. I’m not proposing this of course but just musing for fun. But the upside would be that they could scrap all of the restrictions on development since most have been implemented to slow the cars for safety reasons. With 2000HP power units, ground effects, active suspension etc plus sticky tyres, top fuel and fully adjusting wings they could probably exceed 300mph and corner twice as fast. I’d pay to watch that (although not from the outside of a corner)! If I was a trillionairre I’d sponsor such a series. Would it be possible to halve the current lap times with no restrictions? Anyway, back to the real world…
How about a half scale RC F1, Paulvinho?
Ooh, I like the insane RC car idea, Paulvinho. The RC car fun in the US is strong, mind you, and I bet someone, someplace, is on the case of things you are talking about.
Maybe half sized RC cars would be interesting. Could we learn much that’s useful about aerodynamics, from such “racing”? Combine with “faster than human” reaction times, and close to realistic masses being accelerated, I imagine a good amount could be discovered about safety, and collision avoidance systems. Tires, I don’t think so, because the forces would be out by a square, cubed, as part of the suspension, in some flying loads, but even that might be of interest somehow.
I think it would be a rich boys’ game, though, not trillionaire status required. Just very, very expensive. If the Army can build 300 acre airports just for drones, why can we not have a drone series, on the FIA sheets? Only mention of the FIA sounds bad, actually. Keep it squarely under local associations, as long as possible, I’d say. Hmm, at half scale, couldn’t we use COTA, and not need to build scale facilities?
I think we badly need to tap the rich enthusiast market, somehow, pronto. There really are so many people who could alone, or in a small club, afford a F1 team budget provided we’re thinking the kinds that were used for headlines to entice new entrants a few years back, not the real cost of a modern team.
No, I’m not bonkers, I think people will spend big single digit millions on a hobby. I’d arrange it as a club with everyone’s minimum contribution gaining them life membership, and maximum membership, so there’s a efficiency competition and budget restraint, over a defined contract lifetime. In this way, who throws in a cool five million, with their buddies, to start, remains on the board and the requirements for ability, technical or otherwise. They would have a active role even while new members join by paying what become running costs.
Look at the rise of “E sports”. I can almost contort myself into thinking, if I were free and a little bored, I might pay to have a seat in a arena to watch the very best play some computer games. I’d pay more to ensure no girl ever finds out I did such a thing, voluntarily, most probably, but I can see how it would be interesting. People really love RC sports, and with GoPro video footage de rigueur in almost any self respecting young active life, I can imagine there are angles, literally and figuratively. Not to forget university and college interest.
Thinking outside the box? Well, if we once get the kit from out the box…
It would be quite a technical challenge. Consider how many suspension part designs are at the limit, lowest limit already, of what size they have to be, because of mass — strength requirements. But I imagine this is the sort of thing that would stimulate enormous online discussion and interest. Would I pay to sit in on a design meeting for a F1 car chassis? Heck, yes, I would. So if it’s only at scale, I think I still would, seeing as a model scale is likely my only chance in life of having such a experience and gaining such a insight. The educational potential is massive, and I’d think that makes interest for “real” auto designers, also. Tesla has had such a impact, because America really is a historical seat of auto manufacture, arguably the cultural home of modern appreciation all save the autobahn. As a US venture, you’d have the right energies to draw upon. Now, make it a educational tax write off. Cool hobby all about speed and technology you can offset? Yeah, some of that, please, is that I think a lot of younger wealthy retirees would say. If it’s to be a proper scale venture, tie in things socially, arrange meets with the “real thing”.
I loved Tamiya kits, also, Paulvinho! We had to club up to get one, but that’s the way I’m thinking still! Does it have to be “back to the real world” with a sullen face, like we weren’t picked to play this afternoon? I don’t think so, not always, anyhow.
I thought that whilst watching it on saturday, Senna, Prost and Piquet all racing in the same series, it’s been a while since that has happened ! The noise reminded me of radio control cars, I used to race them when I was younger and they sounded exactly the same. I didn’t think the racing was too bad, interesting to see how Vergne struggled to conserve energy a bit, compared to the more experienced drivers.
Joe,
Do you have any idea why Ron wants to buy back these shares?
I assume it’s to gain more control over the company but I keep asking myself, why?
What’s the story here?
Sorry if I’ve missed it.
You have the answer. He wants to be back in control.
Joe, you’re absolutely right, this floating of the idea of scrapping one of the most expensive engine pkgs in history, though I’d like for it to happen because I miss the sound of the V-10’s, just doesn’t “sound” possible to me. The relavence factor has to be an important one for the engine manufacturers, and I just don’t see what trumps that as our age of austerity, is upon us. It’s been reported that Merc would pull out if it occurred and probably has more truth than not. Whether that holds truth for other manufacturers like Honda remains is yet to be seen, but it would seem regeneration of power is here to stay. Just hope we can find a way to improve the sound because we sure missed it here in Austin this year.
Personally Mr Rose, I’ve remained critical of the PU’s, I like naturally aspirated, petrol, racing engines….if turbos have to be added, ok as long as they allow for flame spitting 1500bhp engines….having said that, if the PU’s remain it is difficult to see F1 survive and prosper. What F1 needs, as much as any cost cap, is a supplier of relatively cheap, reliable engines. That is most unlikely to happen while the PU’s are around. Therefore, what is left of F1 will just be a restricted number of underperforming cars, and 1 Team domination….that is really a turn off for the average spectator.
They just went too far with the engines. F1 is not the WEC.
They tried for revolutionary instead of evolutionary and wound up with an overly complex and expensive mess.
1.6L turbos are fine.
The100L fuel flow limit is fine. They can just up it every year as they see how much the teams are short filling their tanks.
They should have kept the 80hp KERS that everyone was familiar with, and just allowed unlimited use.
Energy recovery? Well you have a 1.6L turbo charged generator – You want road relevant ERS? Put an Alternator on it.
MGuK, Brake by wire, and the various subsystems; Bin them. Too much added complexity for too little PR gain.
Have “unlimited” development – allow any configuration between 4-6 cylinders, but with the proviso that they can only charge their customer teams what the old V8 engines cost.
Thus having a defacto cost cap.
I think that somewhat simpler & less expensive hybrid engine/PU for 2016 would be a more palatable solution. That way all the current R&D is still useful, and no one starts from scratch.
I think you have missed the point about F1 being the most advanced technology. Otherwise it’s just a circus and will fade away.
Mostly thanks to reading your work, any time I read a quote from Bernie I assume that it won’t happen, and wonder who he’s trying to influence today.
I’ve seen the latest news described as ‘propaganda’. Either BE is crazy like a fox, or just plain mad.
It is fun reading and trying to guess the real reason something is being reported, though!
You forgot the most relevant news this week: Max Verstappen will have startnumber 33.
If that is news then I am in the wrong business
Is it me, in my blissful retreat become confused, or have the BS stories become so plain lame as to barely encourage a mumble of ridicule, lately?
As for shares, even “done deals” like takeovers, can take up to a year to close. You line things up, then when the chiefs sign off, everything starts to whirr, and mostly nothing goes wrong.
Anyhow eggnog all round, and silly jollies until March?
Or will something actually happen?
I’m given to thinking, that if there’s a way through the impenetrable rulebooks, someone needs to carve some kind of rear guard action, in the absence of any obvious management. Do we need more post mortems of back marker teams, when they were scuppered before they even signed up, with the ridiculous process of selecting new entrants? Will the big teams, corporate they are, almost, at least taking on the trappings of supposed big time management, wise up to how to run and gun in this economy? Or will they stutter and fail to sell their way out of a wet paper bag… which is rather what F1’s presentation to the world looks like, is, for all the effort made? Fans seem more interested to get involved in arguing over who should get what seat, that arguing TPTB ought to be petitioned either into half wakening, or heave ho. TPTB meanwhile continue their NIH aversion to suicidal depths to consider even the obvious suggestions wholly infra dig for such a elevated pursuit as theirs, international diplomats of the metal horse.
I have started to wish for some disarray, some disruption of the real kind, even if painful, actually painful would be good, because I just don’t see how anything gets done with a few parties fighting for a finite pie, and excluding their “guests”, the newer teams from sitting under the table like dogs, for scraps. Once privateer teams with guts and even rather rude appreciations in the paddock, are now grandees but never averse to seeking white elephant status. I can’t of late figure out what I think of the few biggest teams, at all. Ugh, it’s a mess. With the “ownership” and related issues looking like a Middle East Peace Process, or rather more like ratification of advanced technology at the International Telecommunications Union, where “standards” arrive on cue, neither standards nor usually even current, I think the only way forward does look like guerilla engagement. That might even regain a lot of what F1 has lost, of boldness and ingenuity and Up Yours bust the envelope development. I think it simply lacks the sense of FU technology or attitude that in the right dose kept it all alive. But, dammit, don’t ask me what to do, I just mentally whet the guillotine, in my dreams…
Nice post John, just like life, business and sport, Formula One is about the survival of the fittest…
Or, when it comes to tardy standards setting bodies, like the FIA, or better — and becoming a feint* memory increasingly, teams fiddling the rules to gain whole seconds — survival of the most able to adapt.
Thanks Patrick!
Back to my knitting, I guess :~)
*secondary meaning, of being deceptive. Memories of good things I feel lost are a bit of a blow.
Truth is,there isn’t much truth!
And a race in Qatar would be taking F1 cynicism to new lows. Title sponsor, Islamic State? Public beheading for pit lane speeding?
No it’s ok apparently the secret rules give AbDab and Bahrain the power of veto over any other middle east race. I’m sure Bahrain’s new government, the one with no official opposition party, will not allow external competition either.
Those in power in these counties don’t actually like this “Islamic State” thing, and all that’s becoming, forever becoming the latest mess. But they do seem to like being able to point to a external power, the United States, as someone who is interfering in local affairs, but often as not just doing the rulers’ dirty work. If the State Department once dared to say “grow the heck up, and a pair whilst you’re at it” I reckon one important kind of political malaise would disappear overnight. Sometimes soft power is what’s lacking, when hard power gets misused. These things don’t have to be announced on the front page of The International Herald Tribune.
I’m not questioning the fact that having F1 traipse off to such destinations is becoming messy. But much as Bernie may dream he is a auto racing Henry Kissinger, he most definitely is not. He’s seen I believe as a obsequious little man, just as we see him, when he toadies up to power figures. You cannot deny, however, that anyone in such a position, gets used, gets advised, becomes a channel of one kind or another. By the time someone can make headlines about a sensitive “partner nation”, you have surrounding them a assortment of influences that may serve only to flatter that person’s ego, but which are thereto contain them. And there may be supportive links, whether or not long nurtured it doesn’t matter, that cause BCE to be a difficult man simply to evict for overstaying his lease terms. Or rather fraudulently entering into his lease, in the way they send home those who fudged their entry visas, even long ago.
If anyone thinks that it’s time to ride out a lull in F1 life or politics, hoping this man is going to shuffle off, they had better get a new book of ideas. And start learning what a idea is, in itself, from scratch, because it’s not obvious ideas are things which occur naturally in the environs of those who speak of new eras and new futures for F1. Bernie isn’t going to helpfully put his foot in it, with these states, he won’t be allowed to do so. Stupid old men commenting without grace or even notion are easily ignored, witness politicians, and time to time, members of royal families generally. He’d have to piss off someone actually in power, which, again, he won’t be allowed to do, if he knows how. He’s the CEO of nothing, and the equity that amounts to what CVC have ripped bare to create a stream of handsome rents, is no more than the willingness of people to believe that a race meeting is a meeting worthy of the status claimed in sale to advertisers, and afforded thus. He did well, he’s sold it a few times already. All that’s needed is a golden FU for the PE people, and a neat sidestep of media conglomerate interest, who ought it be wary enough already. I actually liked the idea of a Sky bid, because I think Murdoch has the political clout to tear away the rot of old guard and hangers on. But we’re far from that, yet. I think it would have been nice to have that golden FU payoff to remove the incumbent rentiers, but it would prove, in the end inadequate. Everyone deserves better than this.
Joe, have you heard anything about a McLaren title sponsor yet? Is there any chance they will run a livery resembling the old Marlboro Livery?
No
Hi Joe,
Do you envisage Cosworth returning to F1 as a supplier of these “older tech 1000 hp engines with the hybrid badge” that Bernie alludes to in the news?
F1 is dead if it happens, so I don’t really care.
If there’s method in Bernie’s madness, it must be deliberate distraction. But also a bit of what you said, Joe: the old man is throwing up the threat of destruction. Not nice. I feel for you guys involved in the sport so acutely, every time there’s a report like this. Let alone that you have to comment on it.
next announcement from bernie is to be that turkeys are going to vote for Christmas
at least it will be topical
Well according to someone close to me they (the turkeys) are so badly treated that the might actually be a significant proportion of those casting votes for.
Hello Joe
Thanks for that. Indeed I want to see F1 as the pinnacle etc. I’m pleased to see Honda return as a PU supplier. And I would very much like to see VAG enter as a new team. And lets hope the Haas team does arrive in 2016. F1 needs well funded teams. I know its argued that the big manufacturers may come and go but the same can be true for the knife edge funded teams too. It would be good to see 2? cars on the grid, not 18.
I dont think BCE was being serious about proposing a return to bigger naturally aspirated ‘1000bhp’ V8s or V10s….didn’t he say “we probably wouldn’t ask Mercedes ! ” …….so just a little more of his dry humour/mischief making.
What do you think RD’s long game is ! I would think sourcing the apparently £300+M to gain the 65% holding is certainly not a given and if achieved the interest charges will be significant. So the next step would be floating the company with RD still retaining sufficient shares to retain control while paying off the loan(s) ? But there have been a number of entrepreneurs who have floated their businesses only to find they didn’t like the new circumstances and thus sought to buy them back later.
Only me, but:
Did you mean VW AG, by “VAG”? If so, I agree. They will not come and go in a hurry, which is the best thing about them. Better, their arrival will be dependent on a number of things being better for all. I am certain a little effective altruism is in line with their interests. I’m also sure they are not playing Goldilocks, and just waiting, humming and ho-ing their muse, until the porridge is just right.
Haas frustrate and perplex. They may have no choice but to, dint how entries are accommodated at the moment, not terribly comfortably. But I fear, along with many and maybe most, that their frustrating and perplexing appearance is for lack of the necessary to come on strong. Certainly they’re not just making a smokescreen of uncertainty, for tactical reasons. That said, I badly want a US team on the grid, and if they have the willpower and money to make that a “authentic” home soil team, that will please me immensely. But is that worth the pleasure of a few who would wave the flag for them? That’s already the wrong purpose in racing life. Noises should be coming out, from the level of activity required to make the grid a year and four months from now.
All BCE can do, is make mischief. I think he’s tied himself in knots, actually. See also, my comment about how he’s got the ability to be a nuisance in sensitive places. That’s very unfortunate.
If you can borrow long term, on good terms, now money is cheaper than free. Borrowing pays you the hidden rate of real inflation right back into your business. I guess the real rate if inflation at fifteen percent and higher. Who would not “borrow” to bug a solid asset, then? Just as anyone with any sense, before the hyperinflation of the Weimar Republic grappled teeth in every economic gear to ratios unimaginable, bought every bit of machinery, plant, factory and tool they could. Have you not noticed that nobody wants to float very much? There is your reason. Good companies, even really suspect ones, are snapped up there’s such demand for equity shares. You have to be a total disaster area, a Superfund Site owner with unregulated shale gas extraction, underneath, building retirement condos for silicosis sufferers on spec for a class action success, to get close to the fatal contagion you need to be, to scare off the bankers from putting you into their customer portfolios.
Quiet times, in which we may reflect. Sadly I get to reflect on the severest woes that even the upbringing of a depression era banker couldn’t forewarn me adequately to understand, save in a state of fear, retrenchment, and action as devoted as anyone burrowing a bunker for their dear life.
What we need is some damned fine racing, once and for all rid of the ogres which best or beloved devotion. Some fun, and real challenges. Fair ones. Bent doesn’t sell, not when the whole world is riddled with iniquity.