[ 2020 ] Mclaren F1 Team - Renault

[Jambier]

McLaren F1 team now puts employee on partial unemployement

Drivers, top management and other member still active also agreed to lower their salary

MCLaren is the first team to do that, I assume others will follow.


We are also talking about a budget cap going down from 175millions to 100 millions

[mclaren111]

McLaren F1 team now puts employee on partial unemployement

Drivers, top management and other member still active also agreed to lower their salary

MCLaren is the first team to do that, I assume others will follow.


We are also talking about a budget cap going down from 175millions to 100 millions

If they change to only 100 Million they will have to get cheaper PU's...

[Ground Effect]

McLaren F1 team now puts employee on partial unemployement

Drivers, top management and other member still active also agreed to lower their salary

MCLaren is the first team to do that, I assume others will follow.


We are also talking about a budget cap going down from 175millions to 100 millions

If they change to only 100 Million they will have to get cheaper PU's...

I don’t think the budget cap covers the PU

[Jolle]

McLaren F1 team now puts employee on partial unemployement

Drivers, top management and other member still active also agreed to lower their salary

MCLaren is the first team to do that, I assume others will follow.


We are also talking about a budget cap going down from 175millions to 100 millions

If they change to only 100 Million they will have to get cheaper PU's...

I don’t think the budget cap covers the PU

I assume that if the budget cap is implemented, there will be a lot of exceptions, assumptions and regulations, for instance, fabricating something is more expensive then designing it yourself. HAAS for instance outsources the whole fabrication to Ferrari and Dalara. If those two bills is the rule, then RedBull Racing will buy their cars from RedBull technology for 1 dollar. It will be a lot of accounting and probably a technical/accounting team giving parts and operations a value.

[Jambier]

In the budget cap :

- Engine
- Driver
- Top management

Is not included.

But yes, the big issue is teams sharing parts we know that. Red Bull can develop aero. Alpha Tauri suspension for instance, and sharing one car with two teams allows you to double your budget.

That's why it was he big talking point before COVID. Having a sharing team is a big advantage, even more for Red Bull having really two teams.

[diffuser]

McLaren F1 team now puts employee on partial unemployement

Drivers, top management and other member still active also agreed to lower their salary

MCLaren is the first team to do that, I assume others will follow.


We are also talking about a budget cap going down from 175millions to 100 millions

If they change to only 100 Million they will have to get cheaper PU's...

I don’t think the budget cap covers the PU

There is a limit to what they can charge for PUs for 1 season. So in that sense there is a CAP there. However, each team is expected to pay the max or less on PUs and that is not added to the other CAP.

In other words, a works team doesn't get an extra 10 Million to use for aero cause it doesn't pay for it's PUs.


The 150 Million is what, for example Merc would pay for all the engines it supplies to all team plus develpoment on the PU. That is not Capped. So Merc could spend as much as they want on PU development as long as they supply every customer with the exact same specs, maps, Fuel(in 2021) and is at or under the max price set by the F1/FIA.

[nzjrs]

If they change to only 100 Million they will have to get cheaper PU's...

I don’t think the budget cap covers the PU

I assume that if the budget cap is implemented, there will be a lot of exceptions, assumptions and regulations, for instance, fabricating something is more expensive then designing it yourself. HAAS for instance outsources the whole fabrication to Ferrari and Dalara. If those two bills is the rule, then RedBull Racing will buy their cars from RedBull technology for 1 dollar. It will be a lot of accounting and probably a technical/accounting team giving parts and operations a value.

I would assume there are forensic accountants for whom such chicanery will be trivial to spot.

I don't think there is reason to not believe there are accountants of comparable skill in relation to normal accountants just as we believe F1 drivers are skilled in relation to normal drivers.

[Jolle]

I don’t think the budget cap covers the PU

I assume that if the budget cap is implemented, there will be a lot of exceptions, assumptions and regulations, for instance, fabricating something is more expensive then designing it yourself. HAAS for instance outsources the whole fabrication to Ferrari and Dalara. If those two bills is the rule, then RedBull Racing will buy their cars from RedBull technology for 1 dollar. It will be a lot of accounting and probably a technical/accounting team giving parts and operations a value.

I would assume there are forensic accountants for whom such chicanery will be trivial to spot.

I don't think there is reason to not believe there are accountants of comparable skill in relation to normal accountants just as we believe F1 drivers are skilled in relation to normal drivers.

Before accountants can do their job, rules have to be made up. Simple things like, sponsored parts of the car, will they get a value etc etc. If the rules are clear, I have no doubt that a good accounting firm can monitor the burgets.

[nzjrs]

I assume that if the budget cap is implemented, there will be a lot of exceptions, assumptions and regulations, for instance, fabricating something is more expensive then designing it yourself. HAAS for instance outsources the whole fabrication to Ferrari and Dalara. If those two bills is the rule, then RedBull Racing will buy their cars from RedBull technology for 1 dollar. It will be a lot of accounting and probably a technical/accounting team giving parts and operations a value.

I would assume there are forensic accountants for whom such chicanery will be trivial to spot.

I don't think there is reason to not believe there are accountants of comparable skill in relation to normal accountants just as we believe F1 drivers are skilled in relation to normal drivers.

Before accountants can do their job, rules have to be made up. Simple things like, sponsored parts of the car, will they get a value etc etc. If the rules are clear, I have no doubt that a good accounting firm can monitor the burgets.

I'd be astounded if the rules were not also made under the guidance of such high calibre accountants. It's the sensible thing to do and would mirror the strategy they have taken with Ross Brawn - poacher turned gamekeeper - or the acknowledgement that the entire game is people circumventing the rules.

[Jolle]

I would assume there are forensic accountants for whom such chicanery will be trivial to spot.

I don't think there is reason to not believe there are accountants of comparable skill in relation to normal accountants just as we believe F1 drivers are skilled in relation to normal drivers.

Before accountants can do their job, rules have to be made up. Simple things like, sponsored parts of the car, will they get a value etc etc. If the rules are clear, I have no doubt that a good accounting firm can monitor the burgets.

I'd be astounded if the rules were not also made under the guidance of such high calibre accountants. It's the sensible thing to do and would mirror the strategy they have taken with Ross Brawn - poacher turned gamekeeper - or the acknowledgement that the entire game is people circumventing the rules.

I expect the financial rulebook to be a whole lot heavier then the technical one, with amendments added weekly. Who knows... there might be a whole new forum “f1financial” where fans of financing tricks and innovation come together. At the moment of course, on a financial perspective the image F1 has is one of very expensive and tax dodging (as in living in Monaco for the drivers)

[Wouter]

Last night.

[Darth-Piekus]

What happens with F1 this year? Is it gonna start?

[trinidefender]

What happens with F1 this year? Is it gonna start?

No one knows

[bauc]

What happens with F1 this year? Is it gonna start?

No one knows

We are going off topic here but this might lead to an answer

https://www.formula1.com/en/latest/arti ... LVt4k.html

[diffuser]

What happens with F1 this year? Is it gonna start?

No one knows

We are going off topic here but this might lead to an answer

https://www.formula1.com/en/latest/arti ... LVt4k.html

It's gonna be very complicated. Do sponser pay the same amount? if not how much ? Some of the previous sponsers might be in financial trouble now , what do we do with them ? Is it financiall feesable to run without the earnies from a local audience.

It surely will not be at the same level of development.