Will Brexit have an impact on F1?

[Steven]

So, 52% of the Brits have voted to leave the EU.
No matter what I think about this, and obviously ahead of any negotiations on how the split will go, what might be the impact on F1 teams?

One this is the current reduced valuation of the British Pound, as well as the EURO. In the short term, this could well help Sauber, who are using the Swiss Frank as the only team right now.

[domh245]

In theory, there will be 2 years where we remain in the EU whilst we go through the motions of separating ourselves. As to what happens after that, it really depends on what deals we agree (if any).

[ds.raikkonen]

Refer the following links:
http://atlas.media.mit.edu/en/visualize ... /all/2014/
http://atlas.media.mit.edu/en/visualize ... /all/2014/
UK's 63% imports from and 58% exports to European nations. I am curious to know how this will be affected, esp in F1 where a lot of teams will have European suppliers? Will nations like the US/India/China benefit?

[Holm86]

Will most F1 teams leave the UK, and set up base somewhere else in the EU?
Im thinking it will cause a lot of bureaucracy every time you have to fly out and back home from a race? And cause trouble with suppliers (even though a free trade ageement will probably be made with most current EU nations)??

[Phil]

No matter what I think about this, and obviously ahead of any negotiations on how the split will go, what might be the impact on F1 teams?

Not much. There was life before the EU and there will be life after too. Trade is always in the interest of both parties and solutions will be found. Switzerland is probably a good yard stick on how trade contracts might be done and what to expect. I expect the EU to thread a fine line; On one hand, it's in their very interest to find the best solution for both, but they will not want to lose too much ground and send the message to other (wealthy) EU members that getting out is an attractive option. They're (the EUs) survival depends on it. On the other hand, they need to find solutions for all in order to avoid a chain reaction from happening.

One this is the current reduced valuation of the British Pound, as well as the EURO. In the short term, this could well help Sauber, who are using the Swiss Frank as the only team right now.

The Swiss Franc (CHF) has been quite hight since 2 years now. Didn't help much. Also, the Swiss National Bank is probably considering stepping in to avoid the Swiss Franc becoming too strong because Switzerland has a lot of export and also relies on tourism somewhat. Don't expect it to go lower than 1:1 (CHF <-> EUR), they will probably aim to keep it around 1.10 as it has been the last 6 months (since the Swiss National Bank SNB stopped intervening).

[Facts Only]

Well without thinking about it for more than about 5 seconds the foreign owned teams based in the UK will be better off with a weak £, I.E the money going from Mercedes/Renault/Red Bull/ETC to the UK will go significantly further in paying staff bills and local suppliers. Also sponsorship from outside the UK into a UK team will cost less for the sponsors.

I severely doubt anyone will upsticks and move, unless they can get the 1000's of staff to go with them it wont happen.

[NL_Fer]

With only six races in the EU and maybe two of them going away, i doubt it would be that much more hastle for the logistics and financial streams.

[Gaz.]

Will most F1 teams leave the UK, and set up base somewhere else in the EU?
Im thinking it will cause a lot of bureaucracy every time you have to fly out and back home from a race? And cause trouble with suppliers (even though a free trade ageement will probably be made with most current EU nations)??

Toyota were criticized for trying to run an F1 team in Germany because they could not attract the better staff. Ferrari had to spend lots and lots of Lira and Euros to hunt the best heads in the Schumacher years with a budget most on the current grid could only dream of.

What extra bureaucracy? Nothing changes for shipping equipment and personnel to most of the tracks and it isn't like the UK just voted to relocate to the moon.

[turbof1]

I wouldn't necessary bet on a quick free trade agreement between Great Britain. The European Union will be very keen to deny GB the benefits of free trade with EU countries without the disadvantages (free movement of labour, no closed borders, fees,...). Several top political figures already made so much clear.

In the next 2 years GB will remain member of the EU anyhow; it's a very delicate matter to end membership. So for those years nothing will change for now on that front.

The biggest issue by far will suppliers in the other EU countries. The British Pound has dropped seriously in value in just one day, almost 10% compared to USD and I believe 7-8% compared to the EUR. Expect it dropping further in the next days and weeks when economic groups have calculated the hit on the economy. It could be as much as 20% vs the EUR.

Which means buying supplies outside the country borders will be 20% more expensive. A lot of stuff for instance comes from Magneti Marelli. Suppliers within Great Britain will likely also be much more restrictive towards late payments as they are likely too buying resources on the main land.

The show will go on, and the public will not notice it. But financial wise it'll be a bummer for quite a few teams. I think it'll be especially hard for Manor as they are the smallest and most vulnerable team situated in GB. It'll remain to be seen if they can survive this. As FO told, this only applies on teams who are not foreign owned. It'll probably even be fiscally a benefit for a team like Mercedes as accountancy wise they can reduce taxable profits through currency changes.

[Gaz.]

Remember the teams earn money in USD.

[zac510]

I think that hiring people and getting visas for them to work in the UK will be an extra cost and hassle for them. There'll probably be far more bureaucracy to organise someone a visa (although perhaps just the same amount as when they hire someone from outside Europe). The free movement of Europeans is, in my opinion one of the reasons why London remains successful so it's a great shame to lose this.

[NL_Fer]

I doubt if they convert all income to GBP first, than to buy foreign parts in EUR. Largest income is Bernie's FOM money, so that would be stalled in several currency tax save heavens, like the Netherlands or Ireland, Swiss. Then redistributed to suppliers in the most efficient way.

So FOM receives GBP from Skysports, ITV and The Britisch GP and redistribute to teams and they pay Britisch staff in GBP. FOM receives EUR from European broadcasters and races, redistribute and teams buy EU supplies,,etc etc..

[henry]

What extra bureaucracy? Nothing changes for shipping equipment and personnel to most of the tracks and it isn't like the UK just voted to relocate to the moon.

When I used to ship things to customers in Europe from the uk before the free trade agreement, but after we joined the Common Market. We had to make up shipping lists on the approved forms, in the right language, which were used by customs at the receiving country. On one urgent occasion I flew out to Paris with a part to fix a customer machine in my hand luggage. Wrong piece of paper. Part impounded, no fix. The part was unique for a one off machine. It was easier to make a new part and ship it with the right paper than prise it out of customs. The EEA removes all that.

Also remember the issues the teams had getting things through customs when they first went to India.

[kptaylor]

I was wondering how it would impact the Sauber/Force India lawsuit since I believe it was an EU-based suit.

[Gettingonabit]

I wouldn't necessary bet on a quick free trade agreement between Great Britain. The European Union will be very keen to deny GB the benefits of free trade with EU countries without the disadvantages (free movement of labour, no closed borders, fees,...). Several top political figures already made so much clear.

This works both ways, the EU major players export far more goods to the UK than the UK exports to the EU both in volume and value. To me that smacks of "cutting your own nose off to spite your own face".

So Germany would want to not sell cars and white goods to the UK, and France not to sell wine and cheese and Spain - food and Italy - machine tools etc etc etc.

You could be right of course but lets wait and see.