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Proposing a New Revenue-Sharing System for Formula 1
Published: March 24, 2015
Some, those with more political power and clout, had a bit of negotiating room when coming to the table to make these deals. Others—those at the wrong end of the pit lane—had less choice in the matter.
What resulted from this process is the grossly lopsided and unequal method of sharing out the sport's considerable commercial revenues that we see today. The larger teams get extra cuts before a wheel has even been turned, while the minnows are left to feed on the scraps.
The legal mess surrounding Sauber's contract with Giedo van der Garde has put this issue firmly back in the spotlight. Unsavoury as their behaviour was, the Swiss team did not break his contract for a laugh—they did it because they needed the income from Felipe Nasr and Marcus Ericsson to survive.
Even before the dramatic scenes in the Melbourne courthouse, Alan Baldwin of Reuters reported Sauber, Lotus and Force India had needed an advance payment of their revenue cuts to pay the bills before the start of the season.
And more recently, Christian Horner's call for greater engine equality inadvertently focused attention on equality in other areas of the sport.
Hopefully it will remain at the forefront of fans' minds in the coming months, because addressing the revenue-split inequality is key to the very survival of F1 as we know it.
The precise details of the current revenue-sharing model are not entirely clear; it's impossible to acquire exact figures due to the secrecy surrounding the agreements. However, some journalists have found out enough to be able to piece together a very good idea of how it works.
Joe Saward is one of them—his graphical representati...
Article Source: Bleacher Report - Formula 1
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