F1: Ferrari (NYSE:RACE) Disagrees with Liberty Media’s New Direction
FIA’s President Jean Todt prepared to call Ferrari’s (NYSE:RACE) bluff to leave F1 after Y 2020
At the Geneva Motor Show, Ferrari CEO Sergio Marchionne 2X’d down on his threat to leave Formula 1 by saying the Maranello-based team could race in America instead.
“Why not?” he is quoted by the Italian press as saying. “We have this tradition, and we think about it.”
Ferrari has taken umbrage with many of the policies enacted by new league owners Liberty Media, specifically protesting the proposed next-generation engine formulas and budget cap regulations beyond the Y 2020 season.
Plus, the FIA is planning to further enrage Ferrari by pulling its historical veto powers.
“In the time of Enzo Ferrari, they were the only team that produced both the chassis and the engine, and they needed protection,” said Mr. Todt. “Times have changed.”
As for Ferrari’s threat to quit F1, the Italian outfit’s former official sounded unmoved.
Note: Mr. Todt served as Scuderia Ferrari’s General Manager from Y’s 1994 to 2007, and after that, the brand’s CEO in Y 2006.
“If Ferrari leaves, it will be their choice because they can do what they want,” said Mr. Todt. “Of course I hope they will not, but it cannot be ruled out.”
While he stands against The Scuderia’s rule-making impact, Mr. Todt does believe its fair that Ferrari should receive an increased share of revenue in comparison to other teams.
As it stands, the Maranello outfit is 1 of just 3 that splits what is known as the Constructors’ Championship bonus fund.
This alone awards Ferrari at least $30-M annually. It is then treated to 5% of F1’s profits off the Top, (gross) formerly netting it nearly $100-M annually during The Ecclestone Age.
“For me, is it normal that Leonardo DiCaprio gets more money than a TV series actor? Yes, it is normal. So, again that is life. The better you are, the more money you should get.”
“In this kind of activity, I feel it is normal they get more money. It used to be they were getting more money with worse results. Now they get more money with among the best results, so it makes sense.”
|NYSE:RACE||122.87||15 March 2018||0.62||122.47||123.35||122.07||252,933|
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