Can Formula One come up with a formula to solve its financial problems? The sport is facing a long, winding road ahead as it attempts to work out how best to split the huge revenue it generates.
Formula One's financial crisis —
Can Formula One come up with a formula to solve its financial problems? The sport is facing a long, winding road ahead as it attempts to work out how best to split the huge revenue it generates.
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F1 generated an estimated $1.7 billion in 2013, but that hasn't stopped Marussia going out of business. The team folded on Friday, while Caterham has also entered administration this season. Here, Ferrari's Fernando Alonso is pictured driving during practice ahead of the Russian Grand Prix in Sochi.
Formula One's financial crisis —
F1 generated an estimated $1.7 billion in 2013, but that hasn't stopped Marussia going out of business. The team folded on Friday, while Caterham has also entered administration this season. Here, Ferrari's Fernando Alonso is pictured driving during practice ahead of the Russian Grand Prix in Sochi.
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Caterham finished bottom of the constructors' championship in 2013 and are struggling again this season. The team joined F1 in 2010, but has never won a point.
Formula One's financial crisis —
Caterham finished bottom of the constructors' championship in 2013 and are struggling again this season. The team joined F1 in 2010, but has never won a point.
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Caterham rookie Marcus Ericsson was unable to line up on the grid at the U.S. Grand Prix in Austin, Texas last weekend due to his team's financial circumstances. "It's a strange feeling," the Swede told CNN. "I was out racing with these guys a couple of weeks ago in Russia and now I'm here. It's a very difficult situation."
Formula One's financial crisis —
Caterham rookie Marcus Ericsson was unable to line up on the grid at the U.S. Grand Prix in Austin, Texas last weekend due to his team's financial circumstances. "It's a strange feeling," the Swede told CNN. "I was out racing with these guys a couple of weeks ago in Russia and now I'm here. It's a very difficult situation."
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The 11 teams' share of the sport's $1.7 billion revenue is estimated to be $900 million. The existing commercial agreement binds the teams to this revenue split until 2020.
Formula One's financial crisis —
The 11 teams' share of the sport's $1.7 billion revenue is estimated to be $900 million. The existing commercial agreement binds the teams to this revenue split until 2020.
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But the costs for an F1 team can be astronomical -- Lotus boss Gerard Lopez estimated the new engine packages for 2014 cost $50-$60 million alone.
Formula One's financial crisis —
But the costs for an F1 team can be astronomical -- Lotus boss Gerard Lopez estimated the new engine packages for 2014 cost $50-$60 million alone.
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"If you look at the budgets of Marussia and compare the highest spender, whoever it is, Ferrari or Red Bull, you are talking about a gap from $70 million to $250 million," Mercedes motorsport director Toto Wolff explained. Not that Mercedes driver Lewis Hamilton is complaining as he pops open the champagne to celebrate <a href="index.php?page=&url=http%3A%2F%2Fedition.cnn.com%2F2014%2F11%2F02%2Fsport%2Fmotorsport%2Fu-s-grand-prix-austin-hamilton%2Findex.html">another grand prix victory</a>.
Formula One's financial crisis —
"If you look at the budgets of Marussia and compare the highest spender, whoever it is, Ferrari or Red Bull, you are talking about a gap from $70 million to $250 million," Mercedes motorsport director Toto Wolff explained. Not that Mercedes driver Lewis Hamilton is complaining as he pops open the champagne to celebrate another grand prix victory.
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Marussia's Max Chilton was another driver sidelined in Austin last weekend.
Formula One's financial crisis —
Marussia's Max Chilton was another driver sidelined in Austin last weekend.
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Marussia has not just been troubled by financial problems this season, with the team left devastated after French driver Jules Bianchi crashed and suffered critical head injuries at the Japanese Grand Prix. Here Chilton stands with his team next to a tribute to Bianchi and Marussia following his accident at Suzuka during the Russian Grand Prix at Sochi in October.
Formula One's financial crisis —
Marussia has not just been troubled by financial problems this season, with the team left devastated after French driver Jules Bianchi crashed and suffered critical head injuries at the Japanese Grand Prix. Here Chilton stands with his team next to a tribute to Bianchi and Marussia following his accident at Suzuka during the Russian Grand Prix at Sochi in October.
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There are also wage disparities in F1. Star drivers like double world champion Fernando Alonso, who has yet to decide who he will drive for next season, commands a fee of $40 million a year.
Formula One's financial crisis —
There are also wage disparities in F1. Star drivers like double world champion Fernando Alonso, who has yet to decide who he will drive for next season, commands a fee of $40 million a year.
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F1 supremo Bernie Ecclestone has warned if the sport's cash crisis is not resolved as few as 14 cars could race in 2015.
Formula One's financial crisis —
F1 supremo Bernie Ecclestone has warned if the sport's cash crisis is not resolved as few as 14 cars could race in 2015.
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Regardless of its current financial woes, F1 will continue this weekend in Sao Paulo with Mercedes duo Lewis Hamilton and Nico Rosberg battling for the title. The Brazilian Grand Prix is the penultimate race of the 2014 season. The Briton holds a 24-point advantage over his German teammate. But there could be a twist in the tale with double points on offer (50 points for a win) at the season finale in Abu Dhabi on November 23.
Formula One's financial crisis —
Regardless of its current financial woes, F1 will continue this weekend in Sao Paulo with Mercedes duo Lewis Hamilton and Nico Rosberg battling for the title. The Brazilian Grand Prix is the penultimate race of the 2014 season. The Briton holds a 24-point advantage over his German teammate. But there could be a twist in the tale with double points on offer (50 points for a win) at the season finale in Abu Dhabi on November 23.
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