Any chance MS will form a new F1 team?

[BD]

This is the reason why MS will not be a team owner. He is now a gas station owner. Much more lucrative.

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[my1stnsx]

This is the reason why MS will not be a team owner. He is now a gas station owner. Much more lucrative.

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LOL:biggrin:

 

[Red]

Re: Whoa, whoa, whoa, cowboy

Last private team owner, Midland group did not last through one season without having to sell the team to Spyker.

Not true, as a friend of Alex Shnaiders I can say that the team will have run TWO FULL seasons BEFORE the sale to Spyker goes through. The ultimate issue is that you can't compete against factory teams - if you're running a Toyota engine you've got to believe that its not the exact same engine Toyota runs themsleves (with their $400 Million Budget) Alex bought in because he's an F1 fan and it was a dream, he sold because the opportunity to make some $$$ selling to Spyker outweighed the fact he'd never see a top place finish as a non-factory team and therefore he was just racing for "fun"

If MS wants to start his own team, the 13th team on the grid, he will first have to get permission from Bernie Ecclstone. That means he will have scrap/rewrite the Concorde Agreement. The teams will have to approve the addition because they will have to accept the fact that less “TV” money will be allocated to them – A very unlikely scenario.

Let’s say he wait till the end of the current agreement, which will be years from now, F1 costs will be even higher!!!

Let’s say he does get a team, either as a 100% owner or share owner, what would his incentive be if he has to compete with car giants such as BMW, Ferrari, Honda, MB, Toyota, etc.? It has been proven that by having engines from top makers, the car will still not have the competitive edge because they don’t have the right engineering department. .

I agree with your assesment - besides, nobody but Red Bull or Super will "give" equity in their team to anyone - they're manufacturers and businessmen! Bernie wouldn't compromise the Concord to get a guy who will only run for a while before he runs out of $$$ - so it ain't gonna happen!

However, if he wants to be in Indy or CART, he will do well, because the budget is within his reach.

Cart is interesting, a starting budget can be as low as $4M per year - I'm interested! Schummi will not be - hard to go from king of the world to a comparitively little thing - BUT if CART was smart (funny rhyme, unlikely fact) they'd GIVE a deal to him to get him involved so they can better compete using his "borrowed interest" (marketing term) to attract F1 fans and build out the series!

 

[Red]

If I remember correctly, Midland was bought and sold around $200 million. Don't forget, they are basically the last place team on the grid.

As for profit in F1, oh yeah, there are plenty of money to be made in F1, if you do it right, that is why Ron Dennis is so loaded as the majority share owner of McLaren. Eddie Jordan sold his company to Midland and still be able to walked away with millions after paying off debts.

Pretend Owning an F1 team is like owning a beachfront property in Southern California. If you got in long time ago and survived the market, you will be able to cash in walk away laughing. If you want to buy that same property today, few can pick up the tab. At the same time, if you bought that beach front property today, and wish to do some upgrade, practically every thing you do requires city permits, which may not apply 30 years ago.

For example, one of my cigar customer who spends three grand a month on cigars, own a $4 million home in New Port Beach, Ca. His property tax is $45 grand a year. With $1 million down, his mortgage payment is still $20 plus grand a month. He may be able to sell that home for six million bucks in ten or twenty years, but is the equity gain during that period worth the $20 grand a month payment and a annual $45grand property tax?

Therefore, back to the subject, as I have mentioned before, if MS finished his career 10 years ago with the same accomplishment, during an era with less restricted FIA rule/Concorde Agreement, and less costing purchase of a existing team, yeah, MS can easily have a team with his name. By the way, Prodrive and Dave Richard locked in the final "12th" team allow on the grid.

Some will argue that Aguri Suzuki did just that last year. The differences are that Super Aguri has the basic infrastructure already. They own racing team in Indy, JGTC, etc. Now they conduct their F1 team out of the TW factory in London, while with Honda backing and used as Honda Jr. team.

Dude, you're just wrong! As a guy who sits on the board of an organisation that looked at buying Minardi, as well as a guy who know's Midland's inner workings, (as well as a guy with his own race car), there is ALMOST NO money in racing. The money comes from sponsorships and it replaces the cash that the wealthy team owners put out first (IF they're lucky, "IF"). Chip Ganassi and other almost Billionaires do make money in racing, but it isn't a 10-15% ROE (return on Equity) that you'd expect in a typical low profit business - its less, but its fun and they don't need the money to survive.

I own, and have owned expensive houses - I buy them and fix them up and live in them and I do make big capital gains when I sell - but if I was poor I couldn't afford to carry the opperating costs (my new home has four furnaces, what do you think my heating bill will be? I don't know, but I'm not worried)

Racing is a hobby for rich guys and people who have certain seniority at car manufacturers, its NOT an investment prospect, its a cash burner - TRUST ME!:smile:

BTW - when you get a chance, come up here to Canada and we'll kick back and smoke some CUBAN cigars!

 

[BD]

The money comes from sponsorships and it replaces the cash that the wealthy team owners put out first (IF they're lucky, "IF"). Chip Ganassi and other almost Billionaires do make money in racing, but it isn't a 10-15% ROE (return on Equity) that you'd expect in a typical low profit business - its less, but its fun and they don't need the money to survive.

Racing is a hobby for rich guys and people who have certain seniority at car manufacturers, its NOT an investment prospect, its a cash burner - TRUST ME!:smile:

BTW - when you get a chance, come up here to Canada and we'll kick back and smoke some CUBAN cigars!

After this one, I'm done with the thread.

I too get genuin Cubans locally and the price is much cheaper than those in Canada:biggrin: I used to drive up to Vancouver BC monthly when I lived in Seattle. What you don't have in Canada are awesome Dominican/Nicaragua cigars like Ashton VSG, Opus X, Padron 1926/Anniversario, and Aurora 100 Anoes. Those are on par if not, better most of the Cubans I have smoked.:smile: Montecristo #2, Romeo Churchill, and Cohiba Robusto can only go so far:biggrin:

I couldn't resist to raise some point. You said the cash investiment will be replaced by sponsorship, and yet you said it is a cash burner...

You should read the earlier posts so you know the whole discussion. The lack of Sponsorship of lower F1 teams is the reason why large companies are taking over the sports. All of the lowly placed teams became Jr. Teams of top five. There is a good reason why US racing teams don't involve in F1, simply because their sponsorship dollar is insufficient to compete in F1 competitively.

I'm pertty sure no rich person would want to "play" with a looser team.

After all, F1 is a sport. :smile:

 

[jgtcnsx]

shumacher vw f1 team is what i been hearing

 

[BD]

shumacher vw f1 team is what i been hearing

That was an old news. The idea was tossed around almost two years ago. Audi/VW start a new F1 team so MS can drive for a German team. Now it is not possible since ProDrive took the last spot of 12.

 

[fannsx]

Twelve teams? Which 12? Only 11 teams were racing in the 2006 season.
Is this Prodrive team the same as the wheel manufacturere that SOS sells? What is their web site?

 

[fannsx]

Never mind. I found all the info I needed for now.

http://www.prodrive.com/level3.html?id=716

 

[BD]

Never mind. I found all the info I needed for now.

http://www.prodrive.com/level3.html?id=716

lol

 

[jgtcnsx]

That was an old news. The idea was tossed around almost two years ago. Audi/VW start a new F1 team so MS can drive for a German team. Now it is not possible since ProDrive took the last spot of 12.

oh ok, i remember a few races ago they were talking about that.

 

[92 white 0650]

Re: The secret's out

I loved reading this
I had always wondered where Super Sleuth went.