About the F1 Resource Restriction Agreement

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WhiteBlue
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Re: About the F1 Resource Restriction Agreement

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xpensive wrote:Everybody in the F1 business knows that a budget-cap or staff-limit would never work, which is why there is no such.

The only way is to reduce the pay-off from xcessive spending, flat bottoms and no front wing would go a long way.
Like everybody knows that Porsche would never have a four cylinder inline engine next year in LMP1?
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

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WhiteBlue
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Re: About the F1 Resource Restriction Agreement

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FoxHound wrote:How many years of the same 2.4 litre V8's did we have to see? 7 years? How is this innovative?
Where is the innovation in this spec series of yours WB?
All I keep reading is homologation....this is F1, not touring cars.
That is not the point. F1 has found a way to limit the cost of engine developmeent pretty quickly because there was a need in the view of the influential teams to achieve this. If they put their mind to achieving the same thing on the chassis side they can be successful. The problem so far was the rule making mechanism that made F1 look dysfunctional and going in circles. It looks like the strategy working group can change that fundamental problem.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

Pup
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Re: About the F1 Resource Restriction Agreement

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WhiteBlue wrote:F1 has found a way to limit the cost of engine developmeent pretty quickly...
Sorry, that isn't true.

http://www.f1technical.net/forum/viewto ... 15#p433015

Aesto
Aesto
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Re: About the F1 Resource Restriction Agreement

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Pup wrote:Let's assume it works. Spending goes down, midfield teams become competitive.

The manufacturers and richer teams don't like that. Unhappy with not being able to showcase their abilities, they leave for another series. With the manufacturers in a competing series, F1 loses its position as the top tier of racing. With diminished appeal[...]
I think you overestimate the value of manufacturers to F1. They come and go, F1 stays the same. Does it really matter if Honda, Porsche or Ford; Mercedes, Renault or Cosworth produce the engines? Ferrari is the only manufacturer which has continuously played a role in F1, and I don't buy any of that "F1 needs us more than we need F1" crap. The image of Ferrari is inseparably linked to F1, so it is extremely unlikely for them to leave.
And even if they do - there have been long periods during the history of F1 where Ferrari didn't really matter all that much and the sport was doing just fine. Brabham vs. Lotus in the 60s, Tyrell vs. Lotus in the 70s, Williams vs. McLaren in the 80s, Williams vs. Benetton in the 90s, etc. Those were some of the best battles F1 has ever had, and the manufacturers did not contribute all that much to them. Williams and McLaren are still in F1, and since it is their core business, they will never leave - unless they run out of money.

Oh, and in regard to the proposition of reducing aero in favor of engines: While I like the idea in theory because it would improve racing and eliminate the need for DRS: Aero has been an integral part of F1 since Chapman. And quite frankly, if you take it away, what separates F1 from IndyCar? It would actually be slower than both IndyCar and LMP cars (and even todays GP2 cars). That seems like the biggest threat to the image of F1 as the #1 racing category.

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GitanesBlondes
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Re: About the F1 Resource Restriction Agreement

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Pup wrote:Seriously? You think they'd just pocket that money and call it a day?
Luca Montezemolo wrote:"Yeah, we could spend money on the suspension, or engines, or aero efficiency, but it's just not the same as when we were making wings. We'll just settle for 2nd."
Besides, it's not all being spent on aero. We don't talk about engines, because they aren't interesting anymore, but that hasn't stopped the spending...

http://www.f1technical.net/forum/viewto ... 15#p433015
The problem with your post in that other topic Pup is that Alain Prost said a month ago that F1 needs to address aero costs and not engine costs.
Alain Prost wrote:"If you cannot stop that, which I think is very difficult to do, you need to find other ideas. For example, F1 spends a lot of money on the aerodynamics and in my opinion I cannot understand why we put so much importance on aerodynamics. I understand that big teams have wind tunnels and things like this, but you can only reduce the importance of aerodynamics by [changing the] rules. Have a flat bottom [to the car], go back to the wider tyres to have more mechanical grip rather than aero. Then, okay, you can keep the wind tunnels but the importance will be less.
He also went on to say...
Alain Prost wrote:"Renault has huge experience behind them and they know how to do it and how to spend their money. It's well organised and when we are talking about producing the budget we have clear things with organisation and where to put the money, and then it costs less. I'm sure other constructors may spend more money, but I don't think at the end it will be the key issue."
http://en.espnf1.com/f1/motorsport/story/134539.html

Renault isn't hurting one bit as according to him, they know exactly what they are doing with their money spent, which in turn can be taken to mean they aren't going into debt over their F1 engine program.

To go a little further, a few years back when Caubet was still running the F1 engine program for Renault he said the following...
“We are a total cost around €120m,” said Caubet, explaining how much they spend on the existing engine programme. “The net cost – total cost minus sales – is €60m. For €60m you have a big exposure in the world”
Granted those numbers are based on 2011, but Renault obviously feels the net cost is well worth the exposure they receive.
"I don't want to make friends with anybody. I don't give a sh*t for fame. I just want to win." -Nelson Piquet

Pup
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Re: About the F1 Resource Restriction Agreement

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I don't disagree with Prost. Aero should be less important. I just don't think that it will effect overall spending. What you said is that aero is what they spend their money on, but I've shown you that engine expenditures are still as high as ever.

What Prost is complaining about is that Renault is spending all this money, yet no one is paying attention. He's speaking for Renault here, so he naturally wants what you do - for the engines to take center stage. I think that's fine.

But the fact that Renault is spending so much money for so little gain, when they don't even get any publicity from it, shows just how meaningless budgets become when the teams are fighting for first. They will spend every dime they have on whatever they can, then they'll ask for more and spend it too, and maybe even a bit more just for good measure. If you tell them they can't spend it on downforce, they'll spend it on engines. Or batteries, or brakes, or suspensions or who knows what all. Oh, and they'll also still spend it on downforce.

They aren't just going to pocket the extra change and go home. They'll spend it. They'll most definitely spend it. And when the season is over, they'll look at the damage and say "Whoa! We sure spent some money there! We should do something about that!" And the teams who didn't win will even go and say that to the FIA.

That's why this is all a bit silly. When McLaren have the biggest budget, they aren't making a peep about cost. But when Red Bull pops up with unlimited funds, suddenly Whitmarsh & Co. are absolutely dismayed at the lavishness of it all. The same goes for the others.

So let the top teams bicker among themselves over who gets to spend the most next year. They exist in a microclimate within F1 that is fairly stable and self-correcting, if mostly unobtainable by the others. They'll spend what they want, and no one can do diddly about it nor should they.

There are two distinct groups within F1 that could use financial help: the tail end and the mid pack. If you want to help the tail enders, then you have to actually make the cost of making a car and then getting it and someone to drive it to the races. The simplest way to do that is with customer cars. Actually, the simplest way is for Bernie to just give them the money, and so he does.

But if you want to help the mid pack, then you need to widen the pool of sponsors within F1. Think about it, all the sport needs are two or three Fortune 500 companies willing to come in as title sponsors and suddenly we have a viable midfield. And to do that, you have to bring the eyeballs and that means a) better racing and b) better promotion. You also need to get rid of stupid rules like having only one title sponsor per team as opposed to per car. Halving the cost of a title sponsorship might in itself bring in the needed funds.

Personally, I think the fight for sponsor money is part of the competition. Much like real life, I suppose. When I went out on my own, I hated the idea that getting work wasn't just about my talent in doing what I do. Turns out, I also have to be good at selling myself. I don't like it, but there it is. Same with F1 - part of it is selling yourself to sponsors in order to survive. I seem to remember Sir Frank once saying that was actually his favorite challenge in running a team.

But yes, get rid of the wings, at least one of them, just because.
Last edited by Pup on 13 Dec 2013, 22:34, edited 2 times in total.

Pup
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Re: About the F1 Resource Restriction Agreement

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Aesto wrote:...in regard to the proposition of reducing aero in favor of engines: While I like the idea in theory because it would improve racing and eliminate the need for DRS: Aero has been an integral part of F1 since Chapman. And quite frankly, if you take it away, what separates F1 from IndyCar? It would actually be slower than both IndyCar and LMP cars (and even todays GP2 cars). That seems like the biggest threat to the image of F1 as the #1 racing category.
Personally, I wouldn't want to get rid of the wings entirely. But the problem of cars not being able to follow closely through corners is, I think, the primary problem of F1.

My proposed solution is to place a single wing on the cars, high and either over or just behind the cockpit. This should in theory keep the aero balance on the cars and allow slipstreaming much like in Nascar.
Aesto wrote:I think you overestimate the value of manufacturers to F1.
It's true that F1 doesn't need the manufacturers per se. But it's hard to argue that the brand isn't more valuable with them. And it's the value of the brand that brings in sponsors.
Last edited by Pup on 13 Dec 2013, 02:51, edited 1 time in total.

langwadt
langwadt
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Re: About the F1 Resource Restriction Agreement

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The only reasonably sure way to put a limit on spending would be something extreme like put a fixed maximum price on the main components and if the team wants to use a component they must also make it available to anyone that want to buy at the that price

Pup
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Re: About the F1 Resource Restriction Agreement

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langwadt wrote:The only reasonably sure way to put a limit on spending would be something extreme like put a fixed maximum price on the main components and if the team wants to use a component they must also make it available to anyone that want to buy at the that price
"Hello, Red Bull? I'd like to place an order for one front wing please. Yes, like the one you used last weekend. Shipped to Italy, hold on while I'll get you the address..."

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FoxHound
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Re: About the F1 Resource Restriction Agreement

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You could freeze aero to 1 development per year.
However this will also freeze any advantage.

Red bull brought a different wing to most the races abd even if you could buy it, how will it work with the rest of the car?

Maybe a proposal where any team that is leading the championship or wins 2 races in a row has to make its cfd and aero data available to all teams.
I reckon this would cap costs as a leading team would not be investing as much in aero etc as before.
And it would also help with not being a spec series as it would be up to the recipients of the data to make of it as they will.

Neat and tidy.
JET set

xpensive
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Re: About the F1 Resource Restriction Agreement

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WhiteBlue wrote:
xpensive wrote:Everybody in the F1 business knows that a budget-cap or staff-limit would never work, which is why there is no such.

The only way is to reduce the pay-off from xcessive spending, flat bottoms and no front wing would go a long way.
Like everybody knows that Porsche would never have a four cylinder inline engine next year in LMP1?
Oh much more obvious than that WB, almost as much as every engineer knows that torque is not a form of energy.
"I spent most of my money on wine and women...I wasted the rest"

langwadt
langwadt
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Re: About the F1 Resource Restriction Agreement

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Pup wrote:
langwadt wrote:The only reasonably sure way to put a limit on spending would be something extreme like put a fixed maximum price on the main components and if the team wants to use a component they must also make it available to anyone that want to buy at the that price
"Hello, Red Bull? I'd like to place an order for one front wing please. Yes, like the one you used last weekend. Shipped to Italy, hold on while I'll get you the address..."
yeh something like that :) doubles the punishment for excess spending, first use the money then see other team take advantage of it

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FoxHound
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Re: About the F1 Resource Restriction Agreement

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....only a monza front wing will be totally useless at the nect venue.
JET set

Aesto
Aesto
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Re: About the F1 Resource Restriction Agreement

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That idea is basically just customer cars by another name, with the addition of making innovation completely pointless. If it was implemented, F1 Technical might as well close down D:

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GitanesBlondes
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Re: About the F1 Resource Restriction Agreement

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Pup wrote:I don't disagree with Prost. Aero should be less important. I just don't think that it will effect overall spending. What you said is that aero is what they spend their money on, but I've shown you that engine expenditures are still as high as ever.

What Prost is complaining about is that Renault is spending all this money, yet no one is paying attention. He's speaking for Renault here, so he naturally wants what you do - for the engines to take center stage. I think that's fine.

But the fact that Renault is spending so much money for so little gain, when they don't even get any publicity from it, shows just how meaningless budgets become when the teams are fighting for first. They will spend every dime they have on whatever they can, then they'll ask for more and spend it too, and maybe even a bit more just for good measure. If you tell them they can't spend it on downforce, they'll spend it on engines. Or batteries, or brakes, or suspensions or who knows what all. Oh, and they'll also still spend it on downforce.

They aren't just going to pocket the extra change and go home. They'll spend it. They'll most definitely spend it. And when the season is over, they'll look at the damage and say "Whoa! We sure spent some money there! We should do something about that!" And the teams who didn't win will even go and say that to the FIA.

That's why this is all a bit silly. When McLaren have the biggest budget, they aren't making a peep about cost. But when Red Bull pops up with unlimited funds, suddenly Whitmarsh & Co. are absolutely dismayed at the lavishness of it all. The same goes for the others.

So let the top teams bicker among themselves over who gets to spend the most next year. They exist in a microclimate within F1 that is fairly stable and self-correcting, if mostly unobtainable by the others. They'll spend what they want, and no one can do diddly about it nor should they.

There are two distinct groups within F1 that could use financial help: the tail end and the mid pack. If you want to help the tail enders, then you have to actually make the cost of making a car and then getting it and someone to drive it to the races. The simplest way to do that is with customer cars. Actually, the simplest way is for Bernie to just give them the money, and so he does.

But if you want to help the mid pack, then you need to widen the pool of sponsors within F1. Think about it, all the sport needs are two or three Fortune 500 companies willing to come in as title sponsors and suddenly we have a viable midfield. And to do that, you have to bring the eyeballs and that means a) better racing and b) better promotion. You also need to get rid of stupid rules like having only one title sponsor per team as opposed to per car. Halving the cost of a title sponsorship might in itself bring in the needed funds.

Personally, I think the fight for sponsor money is part of the competition. Much like real life, I suppose. When I went out on my own, I hated the idea that getting work wasn't just about my talent in doing what I do. Turns out, I also have to be good at selling myself. I don't like it, but there it is. Same with F1 - part of it is selling yourself to sponsors in order to survive. I seem to remember Sir Frank once saying that was actually his favorite challenge in running a team.

But yes, get rid of the wings, at least one of them, just because.
Renault seems to think they are getting a good value for what they spend Pup. Refer to what the ex-Renault Sport engine head said about it. If Renault were getting a bad deal for everything as an engine supplier, they wouldn't stick around at all. The F1 team wasn't a good deal for them, so they pulled out, but continued supplying engines.

Prost didn't say a single thing about Renault spending money and seeing nothing in return. Not sure where you picked that up. He is simply stating what I, and others have said - that aerodynamic development is what is eating up excessive amounts of money. Engines have been locked, in-season testing has been banned, and costs are still what they are. For F1 to be a legitimate attraction to auto manufacturers, engines have to be unlocked. Aero needs to locked, or curtailed to the point where there is little to do on that front from a R&D perspective. That would include ruling against aerodynamic trickery when such things show up at a race weekend instead of allowing things to slide because Whiting doesn't know what he is looking at. In any event, it's no coincidence when the engine formula was at its most flexible you saw many engine manufacturers participating in F1. The more restrictive the engine rules became, the less you saw of them since it serves little purpose to design an engine that can never be developed in meaningful sense. F1 aerodynamics have minimal relevancy to road cars, yet F1 does everything it can to continue perpetuating focus on a moronic area.

Regarding F1 sponsorship, top companies do not see it as a good value for their money.

Sure if the costs for title sponsorship were lower, it might be more attractive to them. But as seeing one cannot guarantee how much on-air exposure they will receive, that might have quite a bit to do with it. The awful state of FOM TV production isn't going to help things. I'm afraid though a few Fortune 500 companies entering as sponsors is not going to make the midfield viable. You're always going to have a midfield. The midfield only looked more viable years ago for a plethora of reasons that had less to do with sponsorship, and more to do with where the rules and regulations were at in those days. Before the silly engine rules and other things, you used to see way more mechanical failures over the course of any grand prix. That was what allowed for midfield teams to show up much higher in the standings; better reliability than others on a given race weekend. It also made for more compelling TV to watch since a fan could cheer for an underdog to somehow break into the top 6. With the distribution of points being given from P1 to P10 instead of P1 to P6, it cheapened the thrill of seeing such things. F1 is trying to control unpredictability with what they do now, and as 2013 shows, it backfired tremendously on them as teams opted to just cruise around the circuit for the duration of the race. Racing is about the unpredictable as that is what causes a fan to tune in week after week. Predictable racing results in dull racing, which drives viewership down, and in turn makes little sense for big dollar sponsors to even participate. Why sponsor if teams are just going to cruise around and periodically engage in pseudo-battles that become uninteresting when it becomes obvious that a driver deploys DRS and overtakes with little fuss?

It goes beyond simply selling one's self. The product is abysmal relative to any period in the sport's history, and no amount of selling can cover that up.
"I don't want to make friends with anybody. I don't give a sh*t for fame. I just want to win." -Nelson Piquet