Tag Archives: FOM

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. 

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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: Could F1 consider cloud seeding to ensure Sunday’s race?

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Friday free practice running for the 2017 Chinese Grand Prix was all but a complete washout. With conditions at the circuit and the neighbouring city, in which the hospital on call for medical emergencies from the race weekend, too poor for helicopters to operate in, the FIA delayed and eventually cancelled most of the days running.

Current weather forecasts suggest conditions will improve for tomorrow, but are likely to return on Sunday. Should forecasts prove to be accurate there is a real possibility that it will not be possible for the race to take place on Sunday as scheduled. With only a one week turnaround between the Chinese and Bahrain Grand Prix it will not be possible to hold the race on Monday or at a later date. As such FOM, the FIA, teams, drivers, and broadcasters are apparently in talks to host the entire race weekend activities tomorrow.

Within Formula One, there is no prescient for a race taking place a day earlier than scheduled, and in reality with the highly complex global broadcast agreements in place, it is highly unlikely that terms for running the race a day early can be agreed. Sponsors, Broadcasters, race attending fans, teams, will all seek compensation. As such at this point in time the most likely outcome, if the poor weather returns, is that fans will be treated to a four hour broadcast of no track action at all on Sunday.

This will significantly damage the reputation of Formula One globally and most specifically in Asia, a market in which the sport is struggling (note the discontinuation of the Malaysian Grand Prix agreement from 2018 announced earlier today). To avoid such an outcome it is time for Formula One Management to get creative? Could they look towards a solution involving Cloud Seeding?

Cloud seeding is a form of weather modification, a way of changing the amount or type of precipitation that falls from clouds, by dispersing substances into the air that serve as cloud condensation or ice nuclei, which alter the microphysical processes within the cloud. The usual intent is to increase precipitation (rain or snow), but hail and fog suppression are also widely practiced in airports. (thank you Wikipedia). The process could be applied in areas away from the circuit and the route to the hospital supporting the race.

It is understood organisers of the Singapore Grand Prix, have long used this technology to ensure a dry race weekend during the rain season for the region.

The process was used during the 2008 Beijing Olympics to ensure a dry Olympics.

No doubt, as the weekend processes, the weather forecast will evolve and fans concerns will evaporate!

Formula One: Heineken F1 – More than a race

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The Italian Grand Prix saw Heineken formally launch its Formula One partnership. Whilst the Dutch brewer took title sponsorship at the Canadian Grand Prix earlier in the year, Monza was always set to be the event in which the campaign shifted into high gear.

In the weeks preceding the Italian Grand Prix at the Black Book Motorsport Forum, Heineken executives spoke of strategy to bring Formula One to the fans, to improve the race going experience and seek ways in which to engage a millennial audience. If I am entirely honest I was somewhat sceptical. Brands all to often focus Formula One activation strategies around corporate entertainment and business to business network development.

With this in mind, upon arriving in Monza on the Thursday ahead of the Grand Prix the first thing I did was head to the fan village. In recent years the fan village, an area surrounding the circuit open to all ticket holders, has become little more than a few merchandising stands. It can feel as though the interests of the fan have been overlooked. Heineken have gone to great lengths to address this issue erecting a huge pop bar and entertainment space for fans, as pictured below. Whilst the beer isn’t free, prices are reasonable and they have created a communal space for fans away from the circuit.

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Building on this, Heineken have addressed another common frustration amongst race going fans. How do you fill your time outside of track action? On Thursday evening, Heineken installed a temporary five a side football pitch on the start finish straight challenging Champions League stars to a game against Fernando Alonso, Daniel Ricciardo, Max Verstappen, Sergio Perez and Jolyon Palmer. Whilst it soon became clear the F1 drivers’ talents did not extend to the football pitch, it was fantastic to see Heineken hosting an event for the public outside of the regular F1 weekend schedule. More than 2000 fans filled the main grandstand to watch the game.

Of course Heineken must also use their partnership within F1 to address the fans at home and it would be naive to think there are no business to business expectations around the agreement. On Friday evening, Heineken set about explaining how these would be addressed. At the core of this session was the launch of the two advertisements Heineken have developed featuring Sir Jackie Stewart and David Coulthard. The production values of both films are incredible, and both have been extremely positively received. So much so, that Freddie Hunt, son of the late James Hunt has suggested Heineken use footage of his father in their next campaign.

To see the Heineken F1 adverts in full click here

What struck me about the Jackie Stewart film in particular was the core of the message. If You Drive, Never Drink.  Whilst anti drink drive campaigns are nothing new, making this the fundamental message of a campaign for a beer company is a bold strategy. One unimaginable in other sectors. Heineken should be commended for this approach. They have acknowledged the challenges of associating alcohol with motorsport and addressed it head on.  More over they are seeking to evolve an F1 weekend, from 2 hours of racing on Sunday into something much more significant. This is neatly tied up in the tagline ‘more than a race’.

I am hopeful that Heineken’s approach to fan engagement within Formula One, alongside a fresh approach from the sport’s new owners Liberty Media, will apply pressure to existing brands in the sport to do more with fans. In the beverage sector brand loyalty is fundamental to success and if Heineken can demonstrate new customer loyalty through Formula One and through engaging with fans you can be sure more brands will follow and the Formula One experience will only improve.

To read my interview with Heineken ambassador David Coulthard follow this link

Formula One: Liberty Media Corporation Agrees to Acquire Formula One – Press Release in Full

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Liberty Media Corporation earlier today confirmed the agreement to acquire Formula One. The Liberty Media press release can be found in full here:

Liberty Media Corporation  and CVC Capital Partners (“CVC”) announced today that Liberty Media has agreed to acquire Formula One, the iconic global motorsports business, from a consortium of sellers led by CVC.

Liberty Media owns interests in a broad range of media, communications and entertainment businesses. Those interests are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Liberty Braves Group, and the Liberty Media Group.

The consideration comprises cash and newly issued shares in the Liberty Media Group tracking stock (LMCK) and a debt instrument exchangeable into shares of LMCK. The transaction price represents an enterprise value for Formula One of $8.0 billion and an equity value of $4.4 billion(1).

The acquisition will be effected by Liberty Media acquiring 100% of the shares of Delta Topco, the parent company of Formula One (Delta Topco herein referred to as “Formula One”)(2). The acquisition is subject to the satisfaction of certain conditions and is described in more detail below.

Concurrent with the execution of the agreement to effect the acquisition, Liberty Media has completed the acquisition of an 18.7% minority stake in Formula One for $746 million, funded entirely in cash (which is equal to $821 million in consideration less a $75 million discount to be repaid by Liberty Media to selling stockholders upon completion of the acquisition). Prior to completion, CVC Funds will continue to be the controlling shareholder of Formula One.

After completion of the acquisition, Liberty Media will own Formula One and it will be attributed to the Liberty Media Group which will be renamed the Formula One Group. The consortium of sellers led by CVC will own approximately 65%(1)(3) of the Formula One Group’s equity and will have board representation at Formula One to support Liberty Media in continuing to develop the full potential of the sport. In addition, a CVC representative will be joining the Liberty Media Board of Directors.

Chase Carey has been appointed by Delta Topco and will serve as the new Chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director. Bernie Ecclestone will remain Formula One’s CEO.

Greg Maffei, President and Chief Executive Officer of Liberty Media, said: “We are excited to become part of Formula One. We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders. We look forward to working closely with Chase Carey and Bernie Ecclestone to support the next phase of growth for this hugely popular global sport.”

Chase Carey, Chairman of Formula One, said: “I am thrilled to take up the role of Chairman of Formula One and have the opportunity to work alongside Bernie Ecclestone, CVC, and the Liberty Media team. I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season from all around the world. I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike.”

Bernie Ecclestone, Chief Executive Officer of Formula One, said: “I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them.”

Donald Mackenzie, Co-Chairman of CVC, commented: “We are delighted Chase Carey is joining Formula One as its new Chairman and that he will be working alongside Bernie Ecclestone. Chase’s experience and knowledge of sport, media and entertainment is as good as it gets and we are very pleased to secure his services. Bernie has been a wonderful CEO for us over the last 10 years. There have been many successes and the occasional challenge but there has never been a dull moment and we have had a lot of fun. The combined skills of Chase and Bernie mean that the successes should continue and we wish them well. We would like to thank Peter Brabeck-Letmathe for his outstanding contribution during his tenure as Chairman. His leadership has served the company well, and we are pleased that he will remain on the board as a non-executive director.”

In the acquisition the selling stockholders will receive a mix of consideration comprising: $1.1 billion in cash, 138 million newly issued shares of LMCK and a $351 million exchangeable debt instrument to be issued by Formula One and exchangeable into shares of LMCK. Funding for the cash component of the acquisition is expected to come from cash on hand at the Liberty Media Group. The newly issued LMCK shares will be subject to market co-ordination and lock-up agreements.

The Teams will be given the opportunity to participate in the investment in Formula One, and the detailed terms of that investment will be agreed in due course. Certain teams have already expressed an interest in investing after completion of the acquisition.

The interest in Formula One already acquired by Liberty Media, and the remaining interest to be acquired upon the closing of the acquisition, along with $4.1 billion of existing Formula One debt (which will be non-recourse to Liberty Media) and $0.7 billion in Formula One cash, is being attributed to the Liberty Media Group tracking stock.

Upon completion of the acquisition, the Liberty Media Group will be renamed the Formula One Group and the ticker symbols for the Series A, Series B and Series C Liberty Media Group tracking stocks will be changed from LMC (A/B/K), respectively, to FWON (A/B/K), respectively. Formula One will remain based in London.

The completion of the acquisition is subject to certain conditions, including the receipt of: (i) certain clearances and approvals by antitrust and competition law authorities in various countries, (ii) certain third-party consents and approvals, including that of the Fédération Internationale de l’Automobile, the governing body of Formula One, and (iii) the approval of Liberty Media’s stockholders of the issuance of LMCK shares in connection with the acquisition and the name change of the Liberty Media Group to the Formula One Group, and is expected to close by the first quarter of 2017. Additional information regarding the acquisition and Formula One will be included in a proxy statement to be filed by Liberty Media with the Securities and Exchange Commission relating to the matters to be voted upon by Liberty Media’s stockholders described above.

Formula One: Silly Season revisited

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The 2016 silly season on the face of it has turned out to be some what of a damp squib. With Mercedes, Ferrari, & Red Bull locking down their drivers early on change at the front of the field has been ruled out

Back in May this year I made a few predictions around changes. As the F1 circus returns from a well deserved summer break, outstanding driver agreements will feature highly on many teams ‘to do’ lists. Based on the current driver market I’ve revisited my silly season predictions. It’d love to hear your feedback in the comments section below or through twitter (@jonnywilde)

Mercedes AMG Petronas:

As predicted Nico Rosberg’s contract with the team has been renewed. This comes despite a number of incidents between Nico & Lewis on track. Rosberg now has a contract with Mercedes until 2018. This sees his agreement fall in line with Hamilton’s contract. If nothing else, salary demands of Lewis and Nico by 2018 are likely to necessitate a change in line up. With this in mind Mercedes are priming Wehrlein and Ocon as future works drivers.

 Scuderia Ferrari:

Many expected the Scuderia to replace Kimi Räikkönen in 2017, I suggested Sergio Perez would be the ideal candidate to take on the role, but with a strong first half of the year Ferrari have elected to maintain the Vettel, Räikkönen line up for a 3rd season. Kimi’s life away from the track appears to be having a positive effect on his performance as a driver and as a Ferrari brand ambassador. With changes in the Ferrari management team, driver stability for 2017 and perhaps beyond could be a good thing.

Red Bull Racing

At the time of writing my original silly season article, I commented Verstappen was a shoe in for the second seat with Red Bull Racing alongside Daniel Ricciardo. I also suggested it could happen before the end of the year. I did not expect it happen so quickly. Nor did I expect Max to win a race in 2016! (did anyone?) Both Daniel and Max are now locked down at Red Bull Racing until at least 2018. Putting the Red Bull Racing Junior Driver Development programme on hold.

Williams Martini Racing

2016 has been tough for Williams. The team have fallen behind in the development race, possibly / hopefully due to an early switch in focus to 2017. With engine performance convergence emerging, budget shortfalls in comparison to the top 3 have been felt more than in recent seasons. It seems to be widely expected that 2016 will be Felipe Massa’s last year in F1, with this in mind Botta’s performances haven’t been strong enough. I suggested in the previous article that Kyvat and Bottas’ would be a formidable line up for the team. I now see this as less likely. I struggle to buy into the Button return narrative, but can imagine sponsors would be more than happy to see him re-join the team. That being said if Williams adopt a bold strategy they could look towards development driver Alex Lynn, and replace Bottas with Jenson. If they require funding alongside a driver, Perez could be attractive, although this would be nothing more than a lateral move for the Mexican.

Mclaren Honda

Jenson Button is out of contact at the end of this season. Fernando Alonso is contracted until the end of 2017. The team have Stoffel Vandoorne waiting in the wings. I expected Jenson to leave the team at the end of the season, If the 2017 Mclaren Honda is not in a championship contending position I also see Alonso finally calling time on his F1 career. Stoffel will step up into a race seat with the team for 2017, but who will he race along side? Whilst the original Mclaren Perez relationship did not end well in 2013. Sergio brings substantial backing and has consistently over delivered for Force India. Could he be an outside bet for a seat with Mclaren? The team has the manufacturer backing Perez’s sees as a must to contend for future championships.  With the top team drives locked down, Honda or Renault are his next best bet.

Sarhara Force India

Vijay Mallya has gone on record to state both drivers will be retained for 2017. I do not see this happening. As mentioned above I believe Sergio will move on to pastures new. To me the same logic applies to Hülkenberg. Neither driver is going to contend for championships with Force India. Neither driver is getting any younger. I believe Hülkenberg will move away from F1 towards WEC in 2017. This leaves Force India will a huge budget and talent shortfall. The team may look towards Mercedes and taking on a development driver in the form of Pascal Wehrlein for 2017, who on circuits with which he has prior knowledge has looked very impressive at Manor this season. The team could overcome the budget shortfall and maintain the Mexican links with the team through promoting Alfonso Celis or picking up Esteban Gutiérrez after his tough return to the sport with Haas. Equally, the team have Russian driver Nikita Mazepin on their books, he brings backing in the form of Uralchem and whilst a little hot tempered has performed strongly in junior series.

Renault

2016 was always a holding / building year for the team. They inherited a driver partnership with Jolyon Palmer and to be honest, he has looked a little out of his depth at times this season. I don’t expect the team to retain him. Renault are keen to re-establish the French connection with the team. Assuming Ocon performs well at Manor in the second half of this season I expect him to move over the Renault for 2017. Renault will be keen for the French man to sever his links to Mercedes moving forward and will likely be prepared to pay for the privilege. The other seat at Renault, to me, is between Kevin Magnesun and Sergio Perez. The team know KMag, and know what he can do with the car, but in Perez they have a driver capable of over achieving and a driver with significant backing and a huge fan base. Perez and Ocon would be a strong line up for a team rebuilding and looking to challenge for future championships.

Scuderia Toro Rosso

I expect the driver line up of Sainz and Kyvat to go unchanged into 2017. Sainz was confirmed earlier in the season, his role is secure. With Kyvat the story is a little different, he has struggled since returning to the team from Red Bull Racing. His ultimate pace and skill are not in question. The team must work with him to rebuild his self confidence. STR has historically been the home of junior Red Bull drivers. Pierre Gasly would be the logical driver to make the step up to the team in 2017, but I personally see Red Bull placing him else where, possibly with Manor. STR in order to grow should no longer be seen as a proving ground for future Red Bull Racing drivers and with the current line up at RBR locked down until 2018, STR have an opportunity to operate as their own entity.

The Haas F1 Team

After an incredible start in F1, Haas have settled in a midfield team. I expect 2017 will be a huge challenge for the team. With major regulations changes and the team no longer having such unregulated support from Ferrari I expect them to be battling at the very rear of the field. Grosjean appears to have very few options away from the team, that being said a return to Renault should not be ruled out. For Haas to bring F1 to America they would do very well to sign Indy 500 winner Alex Rossi for 2017 alongside Grojean. I expect Esteban Gutiérrez to move on.

The Sauber F1 Team

With the future of the team secure through Longbow Finances. The Swiss based team can look towards rebuilding themselves. Security in reality has come a little too late to kick start a 2017 challenge into anything more than a return to consistent points finishes, but this is a great place to start. Stories continue to swirl around Marcus Ericsson’s backers being behind the Longbow Finance investment into the team. My personal take is that even if this is true I do not believe the backing is linked to Ericsson maintaining a drive with the team. Investments are made with an expectation of return not simply to pay for a drive. That being said I hope the team will maintain their current line up into 2017. Stability during a period of rebuilding is key, and it should not be forgotten both Nasr and Ericsson are more than capable of turning in strong performances.

Manor Racing

The Manor Racing team have a history of announcing driver partnerships very late on into the year. Rio Haryanto’s mid season demotion to reserve driver demonstrate the continued reliance on drivers with backing. I expect the team will be keen to maintain a development driver relationship to a larger team, be that with Pascal Wehrlein and Mercedes or Gasly and Red Bull Racing (despite the Mercedes power unit agreement) The second seat at Manor, I believe will be taken by Jordan King. He has performed admirably in GP2 this season with Racing Engineering and brings a healthy budget to his seat. It should not be forgotten his father supported the team in their re-emergence from bankruptcy.

Spa, Monza and Singapore have a history of being a circuit in which driver announcements are made, expect significant news in the coming weeks.

 

Formula One: Major new partner for Toro Rosso

 

 

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Scuderia Toro Rosso and Acronis, a global leader in hybrid cloud data protection which partnered with the team on the occasion of last week’s Hungarian GP, have announced the extension of the agreement to a new long-term partnership, designed to reach new heights in racing and technological product development.

The new partnership will lead to rapid innovation, increased safety and enhanced performance during races and off the track.

The Acronis logo, which was already visible on our STR11 cars in Budapest, will continue to be on the team’s cars and its drivers’ race suits, signifying Acronis’ commitment to the team through providing the latest technology to protect Toro Rosso’s IT infrastructure.

Acronis’ team appreciates the complexity of racing in the pinnacle of motorsport, where every millisecond counts. Toro Rosso will use Acronis hybrid cloud data protection solutions to guarantee data availability when it’s most needed — during races and preparing for new events.

Scuderia Toro Rosso produces up to 700 GB of data every race weekend. Hundreds of sensors with multiple data points monitor the cars, providing real-time information, which is immediately analysed and used through the race to improve performance. The data is also transferred to Toro Rosso’s base in Faenza, Italy, where a support group of engineers and data analysts use it for car improvements and new race strategies.

The sport is a data-driven business — the data collected on the racetrack fuels rapid innovation and enables the team to make educated decisions more efficiently.

“In our competitive environment it is becoming increasingly more important to protect all our technical information with a very high standard of software and Acronis can offer exactly what we need. Now that we have a long-term project together, we can’t wait to start working with Acronis, not only on a sponsorship level, but also in terms of adopting their data protection products within our factory and race team. I am sure we will both benefit from this technical cooperation and it will help our team to continue moving forward,” commented Team Principal Franz Tost.

Scuderia Toro Rosso is an R&D powerhouse, which analyses massive amounts of data and fine- tunes cars for each new race, depending on previous history and the current track condition. Acronis places great importance and invests large amounts of resources into R&D activities as well. The two teams will join forces to deliver the best results in racing and in the field of data protection by focusing on precision engineering, performance, design, innovation, and teamwork. The new partnership will lead to increased safety and enhanced performance on and off the track.

 

Acronis is a cutting edge and forward looking company, growing rapidly in the field of data protection, which links in very well with the sport. This cooperation will see them and us work well and progress together,” said Scuderia Toro Rosso driver, Daniil Kvyat.

“It’s great news that Acronis has decided to support our team with a long term partnership”, commented Scuderia Toro Rosso driver, Carlos Sainz. “Formula 1 is a technologically intensive sport and Toro Rosso is looking forward to working together with Acronis”.

“Racing teams are very efficient in using the collected data for rapid innovation and developing new technology. Acronis will race alongside Scuderia Toro Rosso on and off the track, perfecting our own technology and delivering the best products to our partners and customers in the same efficient way,” said Serguei Beloussov, Acronis’ Founder and CEO. “This is a first class sport and Acronis subscribes to its philosophy of success – focusing on a combination of personal ingenuity, team unity and cutting-edge technologies and engineering. We really value the Red Bull brand and we’ve chosen Scuderia Toro Rosso, having great respect for its Team Principal, Franz Tost, and its drivers, Daniil Kvyat and Carlos Sainz. Their vision for the team coincides with our corporate culture of being alert, responsive, vigilant, decisive and relentless, knowing firsthand how often things can work out just at the very last moment when the temptation to quit is greatest. This is relevant to dynamic sport and business”

JWGP  attended the launch of this new partnership in Hockenheim, further insights from the event will follow in the coming days.

Formula One: F1 ownership broken down

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Throughout motorsport journalism there is often talk around who owns Formula One, and what exactly do they own. Paul Caramés of Business and Sport, has put together this fantastic set of infographics to try and explain the true ownership of the sport.

The second chart below details the value shareholders have extracted from the sport:

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This final chart indicates the FOM race fees taken from each of the circuits the F1 circus will visit over the 2016 season:

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The differences between each venue is quite staggering. When you take a cold view of the value creation from each circuit it is entirely understandable why FOM may seek to move away from Europe to more lucrative venues.

To anyone interested in the finances behind Formula One, this data goes someway to explain the complicated ownership model behind the sport.

Data shown in this article is collected through publicly available sources. It is by no means definitive, rather illustrative based on best information availble.

You can follow Business & Sport on twitter here

Many thanks to Paul Caramés for agreeing to my reposting this data here on JWGP.

Formula One: Acronis joins Scuderia Toro Rosso in Hungary

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Scuderia Toro Rosso have announced a new partnership with Acronis, a global leader in hybrid cloud data protection, for the Hungarian Grand Prix.

“We are very happy that Acronis has chosen to our team to celebrate the speed and technological excellence of Acronis Backup 12, for a one-off partnership in occasion of the Hungarian race in Budapest on July 24” commented our Team Principal, Franz Tost

Formula 1 is the fastest and most technologically advanced data intensive sport on earth, and with the world’s fastest data protection speeds, Acronis demonstrates a perfect fit.

If you don’t blink, you may see the Acronis logo stamped on the side of our STR11 racing past your eyes at the Hungaroring this weekend. Before the car completes one full lap, Acronis Backup 12 users will be able to restore more than five servers. With the world’s fastest data recovery time of less than 15 seconds, Acronis Backup 12 is a new solution giving businesses and IT managers more control over their data and workloads than ever before.

According to the latest report released by Network Testing Labs this week, Acronis Backup 12 has largely outperformed other competitors. It only takes 35.6 minutes to back up a 180GB virtual machine with Acronis, compared to higher numbers with anything else on the market. This makes Acronis Backup 12 the fastest data protection technology in the world.

To mark the achievement and as part of the broader partnership negotiations, Acronis selected Scuderia Toro Rosso as the launch partner for Acronis Backup 12.

Shaving milliseconds from the lap time can make the difference between winning and losing. Reducing data recovery time from the industry-standard of 15 minutes to less than 15 seconds can make the difference between business success and demise.

“Acronis is a cutting edge and forward looking company, growing rapidly in the field of data protection, which links very well with our sport. This cooperation will see Acronis and us work well and progress together,” said Scuderia Toro Rosso driver, Daniil Kvyat.

 

“Scuderia Toro Rosso competes in the highest category of Motorsport and Acronis subscribes to its philosophy of success – focusing on a combination of personal ingenuity, team unity and cutting-edge technologies and engineering. We are proud to be associated with Scuderia Toro Rosso as the main launch partner for Acronis Backup12,” said Serguei Beloussov, Acronis’ Founder and CEO.

 

JWGP Comment  “as this press release suggests Acronis are using the Hungarian Grand Prix to evaluate the impact of  sponsorship with a view to a more significant partnership within Formula One. The brand will be monitoring fan awareness of the partnership and any increased traffic towards Acronis social media channels and websites. In addition they will be monitoring new commerical opportunities from a B2B perspective through interactions arising from within the paddock. STR and the agency introducing this partnership will no doubt have lined up numerous senior leadership meetings with other bluechip organisations represented on the F1 grid”

 

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Formula One: Hungarian GP – Tyre stats, watch outs, and reminders

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Following the flat-out straights and fast corners of Silverstone is the tight and twisty Hungaroring: two circuits that could not be any more different. The medium, soft and supersoft tyres have been nominated for Hungary: statistically the most popular combination of the year so far, which was last used in Baku. The Hungaroring has been described as being like an oversized go-kart track, and adding to the challenge of the first circuit ever to stage a grand prix behind the Iron Curtain exactly 30 years ago are weather conditions that can range from extremely hot (a common occurrence) to rain (which was the case two years ago, as well as 2011).

THE CIRCUIT FROM A TYRE POINT OF VIEW:

  • There’s only one real straight on the Hungaroring, which means tyres are constantly working.
  • It’s a well-balanced track, with traction, braking and lateral energy demands roughly equal.
  • High temperatures make thermal degradation a factor.
  • The emphasis is on mechanical grip, as a low average speed means there is little downforce.
  • Drivers describe the Hungaroring as one of the year’s most physically demanding circuits.
  • Hungary starts another back-to-back weekend, with the teams then going straight to Germany.

THE THREE NOMINATED COMPOUNDS:

  • White medium: a mandatory set that must be available for the race, low working range.
  • Yellow soft: another mandatory set whose versatility will make it a popular race tyre.
  • Red supersoft: used for qualifying but it’s not yet clear how much they will figure in the race.

PAUL HEMBERY, PIRELLI MOTORSPORT DIRECTOR:                     

“Hungary provides a very different type of challenge to what we’ve seen at Silverstone, but some of the teams used the recent Silverstone test to try out a few ideas that could be relevant to the Hungaroring, so it will be interesting to see what effect this has. The track has been completely resurfaced, and we saw in Austria that this had quite a profound influence as well: we will need to see if this is case in Hungary too, so free practice will be very important.”

WHAT’S NEW?  

  • The track has been entirely resurfaced and the circuit infrastructure upgraded this year.
  • There is also some new kerbing and run-off areas while the effect of the resurfacing has additionally been to smooth out some of the bumps. This should culminate in faster lap times.

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