Ferrari (NYSE:RACE) team Boss Mattia Binotto has warned the team could walk away from F1 if budget caps are slashed following the coronavirus chaos.
According to reports, discussions last week suggested the cap for Y 2021 could be cut from $175-M to $145-M and then to $130-M for Y 2022.
No agreement was reached and, in an interview Boss Binotto said he believes such restrictions may devalue the world’s Top motorsport.
“F1 has to be the pinnacle of motorsport in terms of technology and performance. It must be attractive for the car manufacturers and the sponsors who want to be linked to this most prestigious category.
“If we restrict costs excessively then we run the risk of reducing the level considerably, bringing it ever closer to the lower formulae,” Ferrari Boss Binotto said.
Our overall technical outlook is Bullish to Very Bullish in here, 3 of my Key indicators have turned Very Bullish.
Ferrari finished at 158.02, +4.87 Wednesday in NY, the Maranello Outfit’s shares were raised to Buy from Hold at HSBC.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term (after the virus) and siding with BAML to 230 long term for now.
Have a healthy day, Keep the Faith!