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On the back of their partnership announcement with Ineos, Mercedes AMG F1 have today revealed the new car livery for the 2020 Formula One season. The new partnership sees the new silver arrows featuring red highlights for the first time since Mercedes returned to F1 in 2012.
Why would Mercedes even contemplate such a deal, their heart can't be in it if so?
F1 is a great marketing platform to them. Especially since they win. But Mercedes have won everything there is to win. They have been dominating the sport since 2014. What is there left to gain? They can’t go up, they can only go down. And when they go down, how good will their return on investment be? Also, they have made no secret of it that they are not happy about the new concorde agreement, and thus have only signed for 1 year. With the financial crisis the world economy finds itself in, it may also be hard to rectify for them to keep spending in F1, while having to fire personnel elsewere.
What is there for Mercedes? Advertising, worth around 4 billion dollars every single year, for a paltry sum of 80 million. Without that team, they have to shell out 4 billion dollars a year to get the same exact visibility in the market place. This is not about winning races and championships. This is generating commercial brand value to then sell their cars. No sane business man would throw that away. With the upcoming budget restrictions, they probably wouldn't have to pay even those silly 80 million dollars either.McL-H wrote: ↑13 Sep 2020, 11:40F1 is a great marketing platform to them. Especially since they win. But Mercedes have won everything there is to win. They have been dominating the sport since 2014. What is there left to gain? They can’t go up, they can only go down. And when they go down, how good will their return on investment be? Also, they have made no secret of it that they are not happy about the new concorde agreement, and thus have only signed for 1 year. With the financial crisis the world economy finds itself in, it may also be hard to rectify for them to keep spending in F1, while having to fire personnel elsewere.
80 million? Are you taking into account the income the team has. Last year it only cost Mercedes 16 million i think, which is a bargain imo.Moore77 wrote: ↑13 Sep 2020, 11:56What is there for Mercedes? Advertising, worth around 4 billion dollars every single year, for a paltry sum of 80 million. Without that team, they have to shell out 4 billion dollars a year to get the same exact visibility in the market place. This is not about winning races and championships. This is generating commercial brand value to then sell their cars. No sane business man would throw that away. With the upcoming budget restrictions, they probably wouldn't have to pay even those silly 80 million dollars either.McL-H wrote: ↑13 Sep 2020, 11:40F1 is a great marketing platform to them. Especially since they win. But Mercedes have won everything there is to win. They have been dominating the sport since 2014. What is there left to gain? They can’t go up, they can only go down. And when they go down, how good will their return on investment be? Also, they have made no secret of it that they are not happy about the new concorde agreement, and thus have only signed for 1 year. With the financial crisis the world economy finds itself in, it may also be hard to rectify for them to keep spending in F1, while having to fire personnel elsewere.
It's not that Ineos and other guys are looking at themselves winning some championships and making name in F1 history. They simply want that precious advertisement platform for themselves.
https://f1i.com/news/383383-mercedes-re ... title.htmlastracrazy wrote: ↑13 Sep 2020, 11:5880 million? Are you taking into account the income the team has. Last year it only cost Mercedes 16 million i think, which is a bargain imo.
Of course, this does not include the Engine department spendThe team spent £309.7m in 2017 which rose to £311.4m the following year, and newly released figures show that the race team spent £333.2m in winning their sixth consecutive constructors world championship in 2019.
But despite the eye-watering figures involved in capturing the title, Mercedes actually came out in profit overall.
The team's income totalled £363.6m, which included money from corporate sponsorships and their share of F1's pot of prize money which is calculated in part on the final number of championship points won in a season.
The thing with rumors is that there is always some merit to it.
Well, Eddie was right about Mclaren, maybe he is aiming for 2 out of 2.
Not saying it is not right, he has had some cracking insiders, but some complete brainfarts too. I was wondering if it is anywhere else?zeph wrote: ↑13 Sep 2020, 21:05I wouldn't bet against Eddie Jordan. This would be an easy way for Merc to bow out while the going is still good, and not be subjected to a Ferrari-like meltdown and inevitable shame.
But I hope he's wrong about this. Their dominance might be boring now, but we need car manufacturers in F1.
