Category Archives: Ferrari

Formula One: Preparing for the budget cap

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The Liberty Media vision for the future of Formula One Teams is clear. The owners expect 12 commercially viable, profitable, franchises all capable of challenging for race victories. In his role as Managing Director of Motorsports, Ross Brawn, has been mandated with the task of delivering a strategy to ensure this vision is achieved.

12 commercially viable & profitable teams, on paper, sounds fantastic. With the variable of available finances removed, the resourceful nature of F1 teams will truly be put to the test. Outwardly it seems as though there is widespread support from the teams for such a move. Afterall, what business wants to spend more money? With representatives from leading teams including Red Bull Racing emploring Liberty Media to ‘ Save F1 Teams from themselves’ the route to implementing a budget cap should, in theory, be straightforward.

However, As with any commercial decision in Formula One nothing is straightforward. The first major hurdle to overcome is the existing structure around payments and the legacy of disparity. In 2017 Joe Saward explained the complexities around the current structure in this article. The existing structure rewards success and longevity, a something which is not overly inviting to a new team, nor geared towards a midfield team ever being in a position to surprise. In an estimated payment fund of $900M per season, the top 3 teams receive approximately 60% of the revenue, leaving the remaining, currently 7, teams to compete for 40% ($360M) between them. It is estimated that the smallest operational budget in F1 today is in the region of $100M, with only $50M coming from the championship, teams have a significant shortfall to cover.

A more appropriate payment structure would be equal distribution amongst all teams, with a proportional bonus for constructors championship position, similar to that seen in the Premier league as detailed here.  Unfortunately, in order to reach this point, the largest teams, with operational budgets believed to be in excess of $400M per season must agree to a cut in support from the system under which their team structure has been developed. What business would agree to lose as much as 50% of its funding without a clear view of how it will cut costs or increase revenue through other ventures.

Convincing; Red Bull Racing, Scuderia Ferrari, and Mercedes Grand Prix to agree to this change will be one of the key tasks ahead of Ross Brawn through 2018 and 2019 if a new system is to be introduced under the new commercial vision for the sport in 2020.

The task is far from simple, the infrastructure of the top teams has been built around a mindset of a limitless budget. If a budget cap of $150m per season were to be introduced in 2020 with no consultation from the teams, it would be almost impossible for the top teams to comply. From a personnel headcount perspective alone a team such a Mercedes Grand Prix, with in excess of 1400 employees, if an average salary of $50,000 is applied, the team commit 46% of its budget to salaries before considering building a car. Without modifying the current team structure, introducing a budget cap within the next 3 seasons, unless Liberty Media expect teams to make more than 50% of their workforce redundant, is not feasible.

On a more positive note, there are indications that the top teams in question are preparing for the change. A budget cap in Formula One will not mean that the likes of operating entity such as Mercedes Grand Prix or Red Bull Racing will be limited to an expenditure of $150M per season, rather their allocation of resources to F1 will see this limit applied.

As a result, it is highly likely that diversification will be a key element to the future of F1 Teams. Over the past decade, McLaren and Williams have established an industry-leading position in the application of engineering solutions developed to improve performance in motorsport being incorporated into manufacturing processes and commercial entities.  For these teams, this third-party business will likely continue to grow. it is, however,  unlikely Ferrari or Red Bull Racing will view this as an appropriate use of resources or brand credibility.

Instead, expect the very top teams to move towards expanding their foothold in other forms of motorsport.

  • Mercedes Grand Prix has already made steps in this direction with the announcement of a commitment to Formula E team from season 6 of the championship. This alongside the development of the Mercedes Project One, which to many is a clear indication of Mercedes ambitions to return to Endurance Racing. A return which with LMP1 regulations under review and the prospect of the reinvigoration of the FIA Global Engine strategy, Mercedes are well positioned to find success.

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Credit to Sean Bull Design for the concept Mercedes Formula E livery 

  • Similarly, Red Bull Racing through their partnership with Aston Martin has acknowledged an interest in taking the Valkyrie racing, and under guidance from Ross Brawn will no doubt be seeking to bring the Toro Rosso team entirely in-house.

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  • McLaren has taken the decision to take control of their GT programme, and have already explored further engagements in championships including Indycar following the positive coverage generated through the one-off partnership with Andretti Autosport at the Indy 500 in 2017.

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  • Ferrari continually talks of a return to Endurance Racing, and could, similar to Red Bull Racing consider a strategy of an in-house B-team with which budget cap compliance could be achieved.

In conclusion, political posturing between the top teams in Formula One, Ross Brawn, and Liberty Media throughout the 2018-19 seasons will likely overshadow on-track performances. Fans of the sport should take any empty threats from top teams to walk away from the sport as just that. Empty threats. The financial implications of such a move make the option unviable. Instead, teams will double down on motorsport, getting involved with more championships, with the eventual winner being the fans.

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Formula One: Scuderia Ferrari IQOS

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Following yesterday’s article in which the prospect of Scuderia Ferrari carrying IQOS branding was explored, designer Sean Bull got in touch to share his vision of a possible 2018 livery for the Scuderia.

Philip Morris International, as title partners of Ferrari, will likely seek to include IQOS naming rights within a partnership announcement in order to maximise coverage and brand exposure. As such the team may well be referred to as Scuderia Ferrari IQOS, following the previous Scuderia Ferrari Marlboro naming convention.

Sean‘s concept livery harks back to Ferrari livery style of the early 90’s using black as a secondary colour throughout the design. The use of black on the front and rear wing would likely appeal to the team’s designers, with the fine detail of aero intricacies being more difficult to make out in rival team ‘spy shots’.

It remains to be seen if Philip Morris International will seek to promote its e-cigarette business through Ferrari in 2018, based on fan response to the rumour, the move would be positively received.

Click here to check out Sean on Twitter for more motorsport livery work.

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Formula One: Underestimate me at your peril – Marchionne to F1

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Underestimate me at your peril. The resounding subtext pointed in no uncertain terms towards Chase Carey and Formula One from Sergio Marchionne at the launch of Alfa Romeo’s title partnership relationship with the Sauber F1 Team this weekend. 

The long rumoured return of Alfa Romeo to Formula One with the Sauber F1 Team was finally confirmed earlier this week. The announcement of the return was closely followed by an invitation to the worlds motoring media to attend a press conference in Milan. On the face of it, the objective of this event was to confirm 2018 Sauber F1 Team drivers Charles Leclerc and Marcus Ericsson with Antonio Giovinazzi taking on a 3rd driver role and to unveil the 2018 livery theme. What transpired was a master class in negotiation from Chief Executive Officer of Fiat Chrysler Automobiles (FCA) Sergio Marchionne.

After a period of observing, tinkering, and to some extent grandstanding, the final races of the 2017 Formula One season have seen Liberty Media begin to share their vision for the future of Formula One. Until now, key protagonists set to be impacted by this vision have largely kept their views to themselves or at least limited opinions to isolated sound bites. Sergio Marchionne and FCA, have now firmly stuck their head above the parapet to makes themselves and their views clear for all.

Elaborate team and sponsor launches are something which for many had been consigned to the history books with the vast majority of team unveiling now taking place minutes before pre-season testing on a chilly pitlane in Barcelona. Yet this weekend saw the team finishing plum last in the championship host over 400 media representatives from all over the world at the Alfa Romeo Museum situated just outside of Milano launch a sponsorship less than one week after the end of the season. With media from the US being flown in First Class with 48 hours notice, it would be conceivable to say that the budget of this single event exceeded the marketing and activation budget of the team for the entire season. Sergio Marchionne wanted an audience for his message, and he wanted his audience to leave the event singing his tune.

In addition to the media contingent, Sergio Marchionne and FCA invited newly reappointed FIA president and former Scuderia Ferrari Team Principe Jean Todt to attend and speak at the event, alongside Formula One CEO Chase Carey, with Sauber F1 Team owner Pascal Picci. So with the stage set, Sergio Marchionne opened the event, in Italian, focusing on the great news of Alfa Romeo returning to Formula One. This was followed by Mr Todt waxing lyrical about the passion of the brand and its significance with motorsport. Chase Carey then took to the stage to applaud FCA for bringing Alfa Romeo back to Formula One, he acknowledged their history in the sport and spoke of his enthusiasm for their return. Then the big reveal, driver line up confirmation and an indicative view of the team livery.

What followed was pure mastery. Sergio Marchionne returned to the podium for a few more words. In the space of 10 minutes, he politely panned the Michael Buffer COTA show, make clear FCA & Ferrari did not want to be part of a ‘dumbing down’ of Formula One, asserted the sport should be focused on technology over entertainment, and what could be the knock out blow, “our partnership with Sauber is until 2021, if we don’t like the direction the sport is taking at that point, we will leave and we’ll take them with us”

This rhetoric was delivered not only to a room full of media, but squarely at Chase Carey seated directly below the rostrum at which Sergio Marchionne made his speech.

Following this, team owner Pascal Picci and team principle Frédéric Vasseur returned to the stage for an open Q&A session. I would not like to suggest any questions were ‘planted’ but the position of FCA strength ahead of any negotiations with Formula One over the future of the sport was highlighted at every available opportunity.

Of course, Chase Carey and Liberty Media did not get to where they are today by chance, I have no doubt they have more than a few tricks up their sleeve as they head into negotiations with Formula One teams over the future of the sport. Sergio Marchionne has simply set the tone of future discussions and made it very clear he is more than happy for any discussion to be made in full view of the media and the Formula One fan.

Formula One: Giovinazzi impresses on his F1 debut

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Antonio Giovinazzi became the first Italian since Jarno Trulli to compete in a Formula Once race this weekend, standing in for Pascal Wehrlein for the Sauber F1 Team in Melbourne. The Scuderia Ferrari development and reserve driver was called up to the team with less than 12 hours notice following concerns being raised around Wehrlein’s ability to complete a race distance due to an injury sustained in the off season impacting his training schedule.

Having completed 2 days of pre-season testing for the team, Antonio Giovinazzi, found himself able to push team mate Marcus Ericsson throughout the race weekend, qualifying just on place behind him on the grid. In the race Giovinazzi bought his Sauber C36 home to finish 12th overall, whilst out of the points, team members and those outside the team were keen to praise his performance:

“A very impressive performance from Antonio during his first Formula One race. He showed his potential as well as what the car is capable of. The lap times were quite satisfying”

Monisha Kaltenborn, Team Principal

Ferrari President Sergio Marchionne, in his celebration of his Scuderia’s return to the top step added a note of recognition to Giovinazzi:

“Congratulations to Antonio for his debut in Formula One”

Commenting on his own performance Giovinazzi added:

“It was a good race, and I am happy with my performance today. My objective was to gain more experience and collect mileage in the car. I will sit together with my engineers to analyze areas where I can improve. I want to thank the Sauber F1 Team and Scuderia Ferrari again for this opportunity. It was an amazing race weekend for me.”

See below to hear from the driver himself in this video uploaded by the team following the race:

New Italian team partner Errea Sport were delighted to see an Italian driver behind the wheel of the Sauber C36- Ferrari, to see a preview of the 2017 team merchandise see below:

The Sauber F1 team expect Pascal Wehrlein to be fully prepared to return to full race duties for the Chinese Grand Prix in 2 weeks time.

Formula One: #5ForTheFans Shell Motorsport & Scuderia Ferrari fan Q&A

As the 2017 Formula One season got underway earlier today, Shell Motorsport & Scuderia Ferrari sat down to answers a series of questions from fans submitted through Twitter to Shell Motorsport. With Kimi, Seb and Shell’s Guy Lovett there is a sense of optimisation coupled with quiet confidence around their 2017 challenge.

Thanks to Guy for answering my question (@jonnywilde) in full and not giving the short response suggested by Sebastian!

Shell Motorsport will run more fan engagement sessions similar to this through the season, follow them on social media to get involved!

Formula One: Ferrari & Kaspersky tackle increased cyber security threat in 2017

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Scuderia Ferrari together with longterm cyber security partner Kaspersky head into the 2017 Formula One season more aware than ever of the acute risk cyber attack places on both the team and the broader Ferrari S.p.A group.

Kaspersky Lab experts uncover more than 300,000 unique pieces of malware every day, new threats are evolving all the time. As cyber criminals develop tools individually tailored to each victim, indicators of compromise are no longer enough on their own to help organizations detect attacks. In this environment, knowing where you’re vulnerable is as important as your ability to detect and prevent cyber-attacks. Rounding this self-awareness out with the latest threat intelligence to help anticipate what’s around the next chicane is vital for an organization with Ferrari’s profile and reputation.

“To be able to foresee potential cyber-attacks and overall analysis of the global threat landscape is required. Kaspersky threat intelligence services proactively provide us with information we wouldn’t otherwise have.”
Alessandro Sala, Cybersecurity, IT quality and Compliance, Ferrari S.p.A
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From the Maranello factory to the Formula 1 circuit, more than 5,000 Ferrari endpoints and systems globally are secured by the world’s IT Security specialists, Kaspersky Lab.
As both companies’ technological vision and innovation extend to connected cars,Internet of Things and a constantly evolving web presence, Kaspersky Lab is deepening its technology partnership with Ferrari, delivering protection that extends beyond devices to the data itself, 24 hours a day, seven days a week.
“Though we work in very different industries, we’re united by the same core business values: technological leadership and a passion for innovation and getting forever better at what we do,”
Kaspersky Lab founder and CEO, Eugene Kaspersky

Over a Grand Prix weekend teams collect more than 60gb of data from each car hitting the track. Through the use of Kaspersky technology, Scuderia Ferrari can take to the track safe in the knowledge their data is secure.  Formula One regualtions dictate any changes made to a vehicle whilst on track must be carried out by the driver (under instruction if required) this does not mean the team could not make the changes themselves, rather they are not allowed. Without the assistance of Kaspersky Ferrari could be vulnerable to an attack to these systems within a race environment. The consequences of which could put the safety of drivers and competitors at risk.

Similar to the bespoke fuel and lubricant required to operate a Formula One car, cyber security is rapidly becoming a fundamental requirement to compete. Having established their relationship with Kaspersky in 2012, as Scuderia Ferrari are better equipped that most to deal with this new threat.
For more information on Kaspersky and their customer facing product range click here.
You can follow Kaspersky motorsport and their activities in F1, Gp2, and endurance racing through there twitter feed here and on their dedicated website here

Formula One: Are Sauber ahead of Mclaren?

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With the first week of pre-season testing in Barcelona drawing to a close to decipher the true pace of any team is almost impossible. All teams will be running their own development programs with differing approaches to fuel loads, tyre usage, aero set up, and engine mode settings. However after four days of testing some trends are beginning to emerge. One such trend could be concerning for Mclaren.

With the Sauber F1 team opting to run a 2016 Ferrari power unit through the 2017 season many expect the team to struggle for outright performance. When the decision was first announced the team explained this move would ensure stability in design and reliability allowing them to focus on the challenges of the changes in aerodynamic regulations for 2017. This approach appears to have paid off as through the first week of testing, only Mercedes and Ferrari have covered more KM’s in testing, 2,597KM  & 2,173KM  to Sauber’s 1,624KM. Mclaren on the other hand have struggled for reliability and not to mention outright pace. Power unit supplier Honda have new approach to the 2017 engine configuration to address inherent performance shortcomings, unfortunately this new design coupled with a new fuel and lubricant supplier, has lead to unreliability. In four days testing Mclaren have covered less than 1000KM.  As teams head into the second pre season test in which performance will should become a greater focus, Mclaren are unlikely to have collected sufficient baseline data to understand how best to extract maximum performance from the MCL32.

As stated in the first week of pre-season testing teams rarely focus on outright performance, however there will certain simulation runs in which drivers are allowed to push the car and situations in which softer compound tyres will be used.

@MsportXtra has complied a useful summary of fastest time set by each driver, total number of laps, and tyre used to set the fastest lap in tweet below:

Comparing the data between Sauber and Mclaren in this format adds further weight to the suggestion Mclaren could be set for a difficult start to the season. In every session in which Mclaren and Sauber completed their fastest laps on the same compound tyre, Sauber were able to post faster lap times. Further more in the session in which Mclaren worked with the Ultra soft compound, Sauber were faster using the super soft compound.

In reviewing the below table provided by Pirelli of the overall fastest times over the test, Mclaren again look to be in a precarious position.

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It is widely understood that Mclaren are not able to use all performance modes with the Honda power unit owing to concerns over reliability. Much of the teams issues can be attributed to this, but with such limited running the team may struggle to validate aerodynamic concepts in the design of the MCL32. After a challenging 2 seasons for the Woking based team could 2017 see the team fall further back down the grid?

The approach taken by Sauber of focusing on understanding the new aerodynamic regulations and minimising the impact of using a year old power unit appears to be paying off, with strong reliability the team should be targeting points early in the season which should also attract interest from new partners, something most teams in Formula One are actively seeking.

Formula One: Kimi & Seb head to the beach

Ahead of 2016 Brazilian Grand Prix, Scuderia Ferrari drivers Sebastian Vettel and Kimi Räikkönen tried their hand at Beach Volleyball. In an event organised by long term team partner Santander the duo competed against each alongside banking customers who later took time out to explain the challenges of fitting training into a hectic life schedule.

Scuderia Ferrari and partners Santander, UPS, & Shell have gone to great lengths in 2016 to create accessible content for fans of the team to engage with their drivers in new and original ways.  The approach is clearly paying off as Kimi, notorious for not enjoying the commerical aspect of F1 life, can be seen in this film actually smiling!

Great job Santander!

Formula One: Kimi & Seb race across the border!

Whilst some drivers in the F1 paddock will have spent the week between the United States and Mexico Grand Prix relaxing on a beach, Scuderia Ferrari drivers, Sebastian Vettel and Kimi Räikkönen have been working hard on their very own “Top Gear” style race. Working with team partner UPS, drivers were challenged to deliver goods from Austin to Mexico city. Fastest delivery wins!

Dealing with customs, language barriers, and a distinct lack of humour, who will take the crown in the teams first race of the weekend?

Excellent piece of work from the UPS team!