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Not again!; Jordan/Midland/Spyker/?????
Topic Started: Aug 14 2007, 07:34 PM (392 Views)
rickyclean
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TheCompleteGuitarist,Aug 15 2007
04:20 PM
rickyclean,Aug 15 2007
11:12 AM
Cricky you'd think someone in there had a business mind and actually thought things through before purchasing an F1 team  <wtf>

Let's face it, there are really only two teams in F1 currently and there have barely been any more than 3 for the last 7 or so years.

It could be said that anyone who invests anything in F1 right now and especially as a new business is effectively committing financial suicide.

Be interesting to see how Dave Richards does.

If you enter a sport where it might take a huge amount of luck or decades to become succesful then what hope does anyone have.

Negative? Realistic?

Doesn't crikey have an E and no C.

I don't deny that. Most people however go into F1 to make money through sponsorship, airtime and hopefully points and all the associated brand development. Ferrari is in it to sell cars after all to name but a few. However, anyone looking seriously at F1 would look at the development program, investment needed, out goings (e.g. travel) and say hey we can or cannot do this. Or they would at least already have the investment in place. To buy a low ranking team and that needs serious investment and then bankrupt yourself half way through the season because you are relying on luck is just idiotic. This may surprise you, but I am a Director of a business myself, I have a degree in economics and have helped my company buy other businesses so I know the basics that are needed. F1 is a business now not a sport, like all high profile sport really. Hence why I have very little sympathy for Spyker as just like Midland they did not do proper due diligence and are now scrabbling around for funding.

As for Crikey or cricky or crickey I dunno, it might have been a typo <smartarse>
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sportsman
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rickyclean,Aug 16 2007
11:30 AM
However, anyone looking seriously at F1 would look at the development program, investment needed, out goings (e.g. travel) and say hey we can or cannot do this. Or they would at least already have the investment in place. To buy a low ranking team and that needs serious investment and then bankrupt yourself half way through the season because you are relying on luck is just idiotic. This may surprise you, but I am a Director of a business myself, I have a degree in economics and have helped my company buy other businesses so I know the basics that are needed. F1 is a business now not a sport, like all high profile sport really. Hence why I have very little sympathy for Spyker as just like Midland they did not do proper due diligence and are now scrabbling around for funding.

As for Crikey or cricky or crickey I dunno, it might have been a typo <smartarse>

I couldn't agree more.
I too am a director of a company and we specialise in retail supermarkets and shopping centres.
We buy many shopping centres and even before we consider making an offer we ensure that
A We have adequate funding from day one.
B That investment in development of the space will produce positive cash flow.
For us to undertake a purchase without the bean counters doing a very comprehensive analyis of expected yields would be plain stupid.
I have very little sympathy for anyone who joins the F1 circus and then startš bleating about the cost.
They should have been fully aware of the costš before embarking on such a risky venture.
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Norbert
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People like Spyker should take a leaf out of the book of the John Deere NASCAR team. OK, the budget is not as much as an F1 team, although for say Spyker or SA I bet it's not that far off..... but.... The John Deere NASCAR team actually paid/pays for itself through just the merchandising alone. John Deere actually maKes/made money from the outfit!!

Surely all you need is a clever marketing company and a bit of brain power....?
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TheCompleteGuitarist
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I agree entirely with what you guys are saying. Someone said on here recently while paraphrasing Ron Dennis that f1 is a sport for 2 hours every odd sunday afternoon, the rest of the time it's business.

Shame really. I was just getting into it when some one tried to stuff a watch, mobile phone, fuel, BMW next cool thing that you don't have but we want you to have down my throat.

And now a break from the ads to update you on the race.

Sorry no time to tell you how your loser hero in 18th place is doing, the front 4 cars are paying for all this airtime.

As for crikey, nothing personal, just not heard that in a long time, infact it still came creeping silently over the internet, as you didn't actually say it, you typed it.

Planet F1 summed it up quite interestingly with their 'Finally Spyker make headlines"

Maybe the guys at the back of the grid should put on a novelty show for us so they get noticed.
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rickyclean
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Norbert,Aug 16 2007
04:36 PM
People like Spyker should take a leaf out of the book of the John Deere NASCAR team. OK, the budget is not as much as an F1 team, although for say Spyker or SA I bet it's not that far off..... but.... The John Deere NASCAR team actually paid/pays for itself through just the merchandising alone. John Deere actually maKes/made money from the outfit!!

Surely all you need is a clever marketing company and a bit of brain power....?

The problem is either creating merchandising that people want to buy or have a team that is successful enough so that you want to buy it in the first place. <think>
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rickyclean
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TheCompleteGuitarist,Aug 16 2007
04:51 PM

Maybe the guys at the back of the grid should put on a novelty show for us so they get noticed.

<roflmao> great idea, maybe get their cars driven by clowns... oh hang on <think>

No offence taken sir about the crykkee I promise :)
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Mrs Shrek
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sportsman,Aug 16 2007
05:29 PM
I couldn't agree more.
I too am a director of a company and we specialise in retail supermarkets and shopping centres.
We buy many shopping centres and even before we consider making an offer we ensure that
A  We have adequate funding from day one.
B  That investment in development of the space will produce positive cash flow.
For us to undertake a purchase without the bean counters doing a very comprehensive analyis of  expected yields would be plain stupid.
I have very little sympathy for anyone who joins the F1 circus and then startš bleating about the cost.
They should have been fully aware of the costš before embarking on such a risky venture.

I agree that you are definitely stupid if you jump into any financial venture without doing the numbers first, but in Spyker and Super Aguri's defence, both seem to have got in this current cash flow crisis because major sponsors have defaulted on payments

Quote:
 
The German website motorsport-total.com said one of Super Aguri's main sponsors failed to pay a substantial due payment in July, leaving the team in a precarious situation eleven races into this season. Aguri's team manager Daniele Audetto confirmed the story.
Link


Quote:
 
The 28-year-old Dutch driver was forced to vacate his race Seat last month, and speculative press reports at the time suggested that Mingya European Resort, a Chinese real estate developer with Dutch links, had failed to pay its multi-million dollar bills.
Spyker Cars B.V, the Silverstone based team's sports-car making parent, has now formally confirmed that Mingya began to go into default at the beginning of this year.
Link


<peek> On a lighter note, the fact that both teams have had defaulting sponsors at the same time could easily lead to conspiracy theories rearing their head. As Ferrari have been keeping a low profile recently, we need to look for other suspects. In my opinion there are two possibilities for who might have 'organised' the sponsors to default.
The first is McLaren, wanting to draw media attention away from their recent internal strife, and clearing the way for Prodrive's entry directly into the midfield by hindering the backmarkers.
The other option is that Honda is behind this. If they can't beat the backmarkers on the track, they could now be trying to beat them off the track, in a desperate bid to double their points haul for the year... <sarcasm>
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