Tag Archives: Tim Holmes

Formula One: Zak Brown’s strategic masterstroke?

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McLaren Honda’s announcement that Fernando Alonso will compete in the 101st running of the Indy 500 this week came at the perfect time for both the team and driver. After a more than challenging start to the 2017 season the team were in dire need of some positive press coverage. The move towards Indy, initialed by Zak Brown (Team Principle) has achieved exactly that.

There are a plethora of reasons as to why this move will be a positive for McLaren Honda moving forward, this article will seek to explore these from driver, commercial, and team perspective.

Driver: Fernando Alonso’s contract with McLaren expires at the end of the 2017 F1 season. Mclaren Honda’s failure to provide Alonso will a car capable of challenging for regular points let alone podiums or wins has been seen by many as a waste of Alonso’s talent. Should Fernando seek to remain in Formula One beyond his current agreement McLaren Honda will have their work cut out to convince him they can deliver a car that will allow him to challenge for a 3rd world championship. Zak Brown and the team realise this, and as such have begun to explore other ‘benefits’ they can bring to the table that other teams may struggle to offer. Running at the Indy 500 is one such benefit. With Honda power supplying half the grid in Indycar, slotting Alonso into a front running team was not a challenge. Realistically only McLaren could offer an active works F1 driver this opportunity.

Will this alone be enough to convince Alonso to stay? Beyond money, which at this point in his career may not be an incentive,  what else could they offer him? Running in LMP1 at Le Mans for the foreseeable future would prove very tough for McLaren to offer to Alonso. With only Porsche and Toyota capable of challenging for a win, it is doubtful a manufacturer drive would be open.

Through Zak Brown’s involvement in the Motorsport Network he has a connection to Formula E (Motorsport Network are minority shareholders of the championship) in addition McLaren supply ECU units. Could the team offer him a drive in Formula E alongside F1 from 2018 and beyond? Equally Zak Brown runs his own endurance racing team, could this be used to entice Alonso to events such as the Daytona 24hrs.

If McLaren can find Alonso success in other categories could they convince him to remain with the F1 team whilst they rebuild? Or could it show him there is more to life than Formula One.

Of course this assumes Alonso would perform well in other categories. The flip side of this strategy would be if Alonso struggles at the Indy500 or other events the team ‘allow’ him to compete in, he will devalue his own stock. He may make himself less appealing not only to F1 teams but also to other championships. In running at Indy Alonso risks limiting his own options when it comes to negotiating new a new agreement with McLaren.

Commercial: McLaren Honda’s recent struggle to retain and entice new partners has been well documented. With another underperforming season in prospect the team’s ability to ‘stop the rot’ is unlikely. Partners join Mclaren on the basis of front running exposure. They are not receiving this. Media coverage the team does receive is largely negative or not focused on racing.

Alonso running at the Indy 500 has created a good news story for the team, media coverage has been extensive and positive. This will continue into Indy. Through running a McLaren livery at the Indy 500 with all Mclaren’s partners gaining exposure, Mclaren will be able to make up for any exposure shortfall they may have faced as a result of disappointing performances in Formula One. Running at Indy will also give Mclaren’s partners additional exposure in the US, a key strategic market. This will help the team in future partner discussions.

The counter argument to this is that existing partners may realise they can achieve expansive coverage, greater than that of F1, simply by partnering with a top driver at a single event. Any partner / sponsor questioning a future with the team may be presented with a new strategic direction through this gimmick / project.

Team. There is no I in team. As fantastic as it is to see a current F1 driver taking part in the Indy 500, but Zak Brown and McLaren Honda management can’t for one second forget that they have fundamental problems to address within their own team. Issues that no PR stunt will overcome. There is talk that Mercedes have agreed to support to Honda in overcoming some of their Power Unit shortcomings, assuming the support leads to a turnaround in form, perhaps there is a light at the end of the Honda struggle. McLaren must focus on this. There is no point ploughing resources into keeping Fernando Alonso happy if the situation around overall team performance does not improve.

A side comment on the offer of Mercedes support. It is impossible to imagine a scenario in which Mercedes will give Honda sufficient information to enable them to challenge for outright performance. Will a Honda Power unit developed with Mercedes not just become an incredibly expensive customer power unit which similar to a Williams or Force India will not be allowed to win?

Could McLaren Honda heading to the Indy 500 also be a comment to the FIA ahead of discussions around future power unit regulations? If they find success in Indycar will Honda start to camping for the same power unit to be used in F1? Are McLaren in sufficient a position of strength to threaten to switch to Indycar should future F1 power unit regulations not shift in their favour?

In conclusion. Zak Brown’s commercial minded approach to management of McLaren Honda and their issues is hugely refreshing for the fan and for sponsors. I look forward to seeing this same dynamic approach being taken to resolving team performance issues.

Credit to Tim Holmes for the concept Mclaren Indycar livery imagery supporting this article. Follow Tim on Twitter here

 

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