While having the first half of the season cancelled has not helped struggling teams, the problem of rising costs has long been a problem.
Racing is not a cheap sport, and that is especially true for the pinnacle of the motorsport, Formula One as some of its top and former teams struggle to put together the money to compete next year. While the FIA has sought to address the rising costs of competing in the sport, teams have found themselves struggling against manufacturer juggernauts and shifting priorities of supplies and builders.
Williams Good Through 2021
Williams is the second most dominant team in Formula 1 behind Ferrari, but in recent years they have not even managed the status of ‘also ran,’ finishing last two seasons in a row. Cash flow problems prompted the team to put themselves up for sale, selling off 75% of its Advanced Engineering division that utilized F1 technologies for engineering and design projects. The final influx of cash from a Canadian food processing tycoon who grouped investors, resulted in $45 million that brings Williams up to date and through 2021.
Related: 14 Things We Learned About F1 From Watching Drive To Survive On Netflix
McLaren And Aston Martin
McLaren is another former top team that is struggling to raise the money necessary to compete in Formula One. Like Williams they had found themselves offering themselves up for partial sale. McLaren has reportedly been able to secure financing through the Bank of Bahrain to continue operations. Aston Martin found itself in financial woes until, like Williams, a Canadian investor and father of an F1 driver stepped in with investors to keep the team alive.
Rising Costs And Global Crisis
While having the first half of the season cancelled has not helped struggling teams, the problem of rising costs have been causing problems for teams long before that. Rising costs has caused the FIA to put price caps on teams starting with the 2021 season. McLaren campaigned to have engine development under that umbrella as costs for that can run in the billions. Most team’s sponsor agreements require 15 races, which the FIA is trying to achieve. If they don’t then most team sponsor agreements would become invalid, forcing struggling teams to lose even more money.
Sources: Forbes, Autoweek, BBC
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