Formula 1’s smaller teams are reportedly close to agreeing a deal which would see them rewarded with a larger slice of the prize money pot.
Over the United States Grand Prix weekend, three teams came close to pulling out of the event in defiance over how the sport is run and how teams are rewarded financially.
Lotus, Force India and Sauber decided at the last minute to race after CVC Capital Partners co-founder Donald MacKenzie promised to resolve the issue, with or without the support of Bernie Ecclestone.
Ecclestone himself admitted he might be to blame for the problems and said the only way to resolve them would be for the larger teams, which receive ‘historical bonus’ payments regardless of how they’re performing, to give up a slice of their income.
That idea went down like a lead balloon with Ferrari and Red Bull in particular, though Mercedes were more open to discussing the matter with Ecclestone. Williams and McLaren have yet to comment.
MacKenzie however recognises that it’s unlikely the ‘big five’ will renegotiate their contracts and he is therefore willing to give up a small slice of the profits from F1 destined for CVC and distribute them between the smaller teams.
CVC need the grid to remain at a healthy number in order to keep F1’s value relatively high in the event they come to sell the sport as they’re likely to do within the next couple of years, even if it means slightly reduced income.
The threat of a boycott remains though should MacKenzie fail to follow through with his promise, with the three aformentioned teams reportedly set to miss the Abu Dhabi GP if a deal isn’t agreed before Brazil next week.
Discussion about this post