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The Vauxhall operation at Ellesmere Port in the north-west of England appears under serious threat as the UK car market continues to fall to new lows. As we covered in one of our earlier articles...
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Thursday 9th October 2008
Who would have thought that the high finance, money is no object world of Formula 1 would take a hit off the credit crunch. Who would have thought that the multi-billion pound team operations would struggle to make ends meet?
F1 leader Max Mosley has announced plans to slash the costs associated with the sport by putting in place cost savings of around $5 billion over the next 2 years. It seems that the credit crunch has seen a major reduction in advertising and sponsorship income which is the food for the industry and covers the massive costs associated with running a team in the sport.
While there has been no official announcement there is speculation that some of the smaller teams are struggling as they see income drop significantly and new deals fall by the wayside. It would be wrong to suggest that F1 is on verge of collapsing but there needs to be a drastic cut in costs in the short to medium term to trim some of the fat which has appeared over the last few years.
What would happen if the TV companies pulled the plug on the sport? Or they played hard ball when the next round of negotiations come around? |
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