Caporegime
- Joined
- 18 Oct 2002
- Posts
- 33,188
The report is basically complete and utter ****. First, they almost certainly don't have the real costs of every team. Second the income for one season is often reflected in the cost the previous season. If a team spent 10mil more and won 10mil more, they get that 10mil extra the next year so that muddies the picture.
Quite aside from the fact costs increase in every sport and industry over time anyway, 2015 had 10 teams, 2016 had 11 teams. They mention Haas are on the low side budget wise but they must be up around the 80mil mark at least if not more, so that is half the cost increase instantly. Then 2015 had Lotus having spent next to nothing on 2016 and fired half or more of their staff as they basically went bankrupt. They probably only spent 60-70mil in 2015 while Renault rehired a shedload of people. Renault are building up in the same way Merc did, so I'd expect Renault to have spent 130-150mil last year. So just the increase from Haas and Renault building up a little would account for the massive majority of the increase in spending.
You also have the basics, every team plans for regulations changes, so FI might spend 110mil for two years and spend 140mil in a regulation change year, making a 10mil loss last year but aiming for a 5-10mil profit in the other two years, doesn't always work out like that at all, but every team knows and plans for increased spending.
basically the article is dumb, attributes almost the whole lot to the regulation changes as if the changes were choices that increased costs more than other regulation changes might have.
Regardless, combined 2mil net loss is pretty healthy, most sports have massive losses across an entire league as people chase success with several teams ending in financial ruin every season.
Quite aside from the fact costs increase in every sport and industry over time anyway, 2015 had 10 teams, 2016 had 11 teams. They mention Haas are on the low side budget wise but they must be up around the 80mil mark at least if not more, so that is half the cost increase instantly. Then 2015 had Lotus having spent next to nothing on 2016 and fired half or more of their staff as they basically went bankrupt. They probably only spent 60-70mil in 2015 while Renault rehired a shedload of people. Renault are building up in the same way Merc did, so I'd expect Renault to have spent 130-150mil last year. So just the increase from Haas and Renault building up a little would account for the massive majority of the increase in spending.
You also have the basics, every team plans for regulations changes, so FI might spend 110mil for two years and spend 140mil in a regulation change year, making a 10mil loss last year but aiming for a 5-10mil profit in the other two years, doesn't always work out like that at all, but every team knows and plans for increased spending.
basically the article is dumb, attributes almost the whole lot to the regulation changes as if the changes were choices that increased costs more than other regulation changes might have.
Regardless, combined 2mil net loss is pretty healthy, most sports have massive losses across an entire league as people chase success with several teams ending in financial ruin every season.