Tag Archives: Ferrari

Formula One: Kimi talks to his Fans on via Instagram

Kimi Räikkönen’s increasing use of social media to engage with fans and critics continued today with the 2007 Champion posting a Q&A session.

Through the post, Kimi talks about his family, touches on his future plans and praises the trophy design selected for the 2018 French Grand Prix.  It seems Gorilla’s and the Iceman go well together!

It’s great to see driver’s taking control of their online presence and engaging with fans in ways in which they deem appropriate.

Thanks to the TheMiezicat for posting the session on YouTube.

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Formula One: Ferrari QUIT …Ordinary Smoking

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Scuderia Ferrari secured their second victory of the 2018 Formula One World Championship in Bahrain yesterday, with Sebastian Vettel managing to extend the life of the soft tyre compound well beyond the Pirelli advised operating window. The four-time champion converting a two-stop strategy focused on pure pace into a one-stop endurance challenge in response to what many saw to have been a checkmate move from Mercedes with Bottas and a recovering Hamilton pitting for medium compound tyres after Vettel’s first stop. This demonstration of masterful tyre management and dynamic race strategy suggests a thrilling season is in prospect.

After the processional opening race of the season, the eventful Bahrain Grand Prix was a welcome relief for fans and media alike. Overtaking is possible in 2018! Away from the racing, another feature of the 2018 season that continued to grab the attention of commentators was the smoking Scuderia Ferrari and the Ferrari powered customer teams. Technically minded reporters suggest this feature of the 2018 Ferrari power unit is the result of the power unit solution employed by Ferrari to overcome additional restrictions on oil being used as fuel. Through 2017 the oil generating this ‘smoke’  would have been channelled back into the power unit and possibly improved performance, for 2018 Ferrari have elected to channel oil out of the car. Much to the frustration of any competitor lapping behind them.

Whilst the technical explanation is entirely logical, (albeit poorly explained in this article) there is an alternative school of thought around this new feature of Scuderia Ferrari. Ahead of the 2018 season, it was widely expected the scarlet team would feature branding from title partner Philip Morris International’s electric cigarette / vaping division IQOS. In fact livery designer extraordinaire Sean Bull put together this fantastic mockup livery around such an announcement:

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Regional advertising restrictions around products containing tobacco likely put an end to these plans, but curiously around the same time as the 2018 launch, PMI announced an extension of its agreement with the Scuderia. Since 2008, when all tobacco advertising was banned in sports, PMI and Ferrari have sought to bypass these regulations through the use of suggestive images, such as barcodes mimicking the brand name Marlboro or team logos reflecting the Marlboro brand identity, is it possible the new smoking look to the 2018 Ferrari is a form of next level subliminal advertising?

IQOS stands for I Quit Ordinary Smoking. The IQOS device acts as a substitute for cigarettes, giving users the tobacco kick as cigarettes, with reduced health risks. During use, IQOS emits a harmless smoke cloud (seen here). Has Ferrari Team Principle and Former PMI Marketing Executive, Maurizio Arrivabene, created the ultimate subliminal advert for IQOS in developing a car to mimick the characteristics of the product a sponsor is seeking to promote?

Is it time to rename the Ferrari SF71-H  the SFIQOS-H!?!

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Photo credit: Mark Sutton

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: Missing Sponsors

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As the clock struck midnight on December 31st 2017, many sponsorship relationships throughout the F1 Grid reached their conclusion. In the coming weeks and months, numerous new agreements will be announced at both a team and championship level as attention focuses on the season ahead. For myself as a lifelong fan of the business of Formula One, now aspiring to develop a career in this side of the sport, this period between commercial contract expiry and new contract announcements can be fascinating.

No team will encourage media to make a story out of the end of a partnership, so don’t expect any press releases confirming a departure, instead head to the partner’s section of the website of the team you follow and see if you can spot the brands or names suddenly missing from the list.

A well-publicised partnership expiration is that of the relationship between Santander and Scuderia Ferrari.  A partnership many believe will be replaced by the promotion of long-term team partners Phillip Morris introducing e-cigarettes to Formula One with the brand IQOS. If true, e-cigarettes could represent a high-value sector of sponsors for F1 moving forward, assuming advertising challenges can be overcome, and OEM’s including Mercedes and Renault are comfortable with the association.

Intriguingly, whilst Santander has been removed from the Scuderia Ferrari Website, it remains on the McLaren (no longer McLaren Honda) website. Santander, whilst no longer a brand represented on the McLaren livery have been partnered with the Woking based team since Alonso first joined the team in 2007.

Can you spot any other team websites with mysteriously missing partners? There are some out there which may surprise…

Formula One: Turning the Red Bull Racing Aston Martin story on its head

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Amongst the #ToroHondaRenaultMcLarenRosso hype during the Singapore Grand Prix weekend, news of around Aston Martin increasing its involvement in Formula One with Red Bull Racing has started to solidify. Andy Palmer, Aston Martin CEO, when quizzed on the grid by Sky Sports F1’s Martin Brundle confirmed the business is keeping a watching brief on 2021 engine regulations, which should they fall favourably towards independent manufacturers, could lead to increased involvement of the brand. Should this be the case Palmer confirmed Aston Martin may seek to preemptt the regulation change by enhancing their visibility with Red Bull Racing possibly from as early as 2018.

This news comes at a time in which the media are speculating Red Bull’s long-term interest in Formula One may be dwindling, which has lead some observers to suggest a change of ownership of Red Bull Racing under the guise of Aston Martin. Whilst this is entirely possible, there are, in my opinion, a few to many creative leaps being taken for this outcome to be viable.

Firstly, lets address Red Bull or more specifically Dietrich Mateschitz’s diminished interest in Formula One. Red Bull entered F1 to sell a product, this objective is the same today as it was 30 years ago. In 2016 the Red Bull achieved more than $1,000M in media coverage from through Formula One. This far exceeds any investment the brand makes into the sport. With budget caps on the horizon, the business rationale for a marketing focused business to be involved with F1 will only increase. Should a $150M budget cap be achieved, Red Bull Racing can be assured of achieving this investment through existing sponsors, and prize funds. Red Bull stand to benefit from $1000M in free advertising.

2017 saw Aston Martin return to profit for the first time in over a decade. The business has stated ambitions around going public in the coming 5 years and are focused on expanding their automotive range to increase revenues. At this time, and in the mid term they are not a business capable of sustaining any form of Formula One engine development plan. Aston Martin Racing is a completely separate business to the Aston Martin which sponsors Red Bull Racing.

Returning to Dietrich Mateschitz. A serial entrepreneurr and self made billionaire. In recent years, he has seen the likes of McLaren diversify into the production of cars, and Williams create successful businesses in the application of their technology within a commercial environment. He is aware that the technical capability of the Red Bull Racing group is under utilised, something which will only increase under a F1 budget cap.  Projects such as Newey’s America’s Cup Project and the Aston Martin Valkyrie Hypercar project show an evaluation of ways in which the team can direct resources to other projects. Could this lead to an alternative direction for Red Bull Racing?

Rather than Aston Martin becoming title sponsor of Red Bull Racing, with a view to producing a power unit under the 2021 regulations. Could Red Bull be considering buying Aston Martin, supporting them in the acceleration of their automotive expansion plans, facilitating F1 power unit development, through their partnership with AVL, and using the proven brand power of Formula One allow Dietrich Mateschitz to evolve Aston Martin into a genuine competitor to the entire Ferrari Group.

Dietrich Mateschitz acquiring Aston Martin and reshaping his position in Formula One towards a Red Bull owned Aston Martin F1 Team, from a business perspective appears entirely more feasible than a company reporting $16M profit, having committed $550M to new road cars, suddenly investing $20M per annum in title sponsorship then paying to develop  an F1 engine.

All that being said, Red Bull, through offering half stories and snippets of information continue to dominate F1 news despite being unable to challenge for a world championship. The business continues to offer a master class in media manipulation. As in 2014, when F1 news was dominated by stories of Red Bull looking set to quit Formula One, Red Bull have an ability to create their own news to ensure they dominate the F1 headlines between the races.

Finally, despite quotes to the contrary, Red Bull Racing are very well aware that the best chance they have of securing a return to a championship challenging position is with a fully funded manufacturer. Talk of Aston Martin, in my opinion, is nothing more than a negotiating tactic around the terms under which the Volkswagen Group will enter Formula One.

Credit to Sean Bull for the fantastic livery creation supporting this article. 

The three P’s of Formula One: Points, Penalties and Prizes – Paddock Magazine

The 2017 Italian Grand Prix served to highlight once again that current Formula 1 regulations around grid penalties for exceeding…

Source: The three P’s of Formula 1: Points, Penalties and Prizes – Paddock Magazine

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: A fitting tribute to a great man – John Surtees

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With the final day of pre-season testing for the 2017 Formula One season came the terrible news of John Surtees passing. It was on with a sombre feeling current drivers reflected on their memories of the true racing legend, of how he inspired them, and the times they had spent together.

As the weekend passed many have spoken about his record of being the only person to hold championships on both two and four wheels, something almost incomprehensible in motorsports today, but how many of us actually know the history behind such an achievement? Speaking to Mobil One’s The Grid John Surtees in his own words reflects on his career and what lead him to transition from two to four wheels in the first place. Sir Sterling moss goes on to detail the sheer drive and passion John Surtees applied to life.

I can’t claim to know a great deal about the history of sport beyond that which I have lives through, so for me this film gave a fascinating insight into a time in motorsport I can only dream of. The purity and passion of motorsport at this time is something current drivers and the sport in general should aspire towards.

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!