Financial troubles for A1? - 10-Tenths Motorsport Forum

climb · 14 Dec 2005, 07:40

Italiaracing.net (sorry it's in italian!)

http://italiaracing.net/news.asp?id=3406&cat=A1GP&nome=A1|GRAND|PRIX&cart=a1gp

reports that the series despite the encouraging success of the first races, is having economic problems: it seems that many teams still have to pay their franchises and spare providers are blocking deliveries because they're not being paid.

Is it a pure hint, has anyone heard about it elsewhere?

**Stephen Green** · 14 Dec 2005, 08:00

The only problem I have heard of to date has been the Russian teams inability to pay their bills, hence them not running in Dubai last weekend. No news on any of the other teams though.

Just Do It! · 14 Dec 2005, 11:07

China I think were the other one who were a bit shaky. Ironic for the world's emerging Super Power

Kicking-back · 14 Dec 2005, 13:25

That italiaracing site has a history of knocking any series using Lola rather than Dallara chassis.

Sheik Maktoum could fund the entire A1GP from loose change if he wished.

mbathshah · 14 Dec 2005, 16:08

Definately heard the same from some very good sources. How many spectators turned up in Dubai? Not many from the few shots we were shown of the grandstands.

Whilst it may be true that the Sheikh has got more money than God and the Arabs hate losing face - nevertheless economics are economics. If you factor in the franchise fee (3 years and the amount that a top team (Carlin etc) charge you are talking about what $5-$10 million per year. Quite frankly can't see that being recouped from TV or sponsors especially some of the less well known countries!

SALEEN S7R · 14 Dec 2005, 16:20

Firstly the A1 GP race was held on a working day in Dubai. Secondly, from what I have seen both from TV pictures and photographs online the grandstands seem pretty full to me. Not 100 full, but around 85-90%. A1 IMO is far from struggling. Here are a couple of photos from last weekend that I've seen regarding crowd sizes.

Small crowds?

JohnMiller · 14 Dec 2005, 16:26

That grandstand looks far from 85% to 90% full and is really the only viewing point at the entire facility.

SALEEN S7R · 14 Dec 2005, 16:37

Looks pretty full to me John, you think the series is struggling to attract crowds? Didnt you see the crowds at Brands and Lautiz? It wasnt capacity crowds no, but it was a lot better than a lot of other International series get.

JohnMiller · 14 Dec 2005, 16:46

Not syaing it's empty, but not 85% or anything like it.

lausitz? LOL.

mbathshah · 14 Dec 2005, 17:05

Photos can be misleading. I guess the main grandstand (photo) has only got a few thousand people in it. With many tickets being given away for free and the rest priced at what $10? doesn't even pay the bill for circuit hire I would have thought. Nonetheless I hope A1 carries on but unfortunately the problems that Russia have had may not be unique in the A1 paddock!

BootsOntheSide · 14 Dec 2005, 18:20

If Russia weren't the only team not to pay the bills, why were they the only team not to be allowed to race? Or were they simply unable to attend due to their finances?

If the figures alluded to for the Dubai race are as low as the reality, it is worrying for the series. Countries like Dubai could be key to the viability of the championship. I'm not sure how expensive it is to run a race there; it's proabbly a fraction of what it would be at Brands, but surely not by enough to offset the smaller crowds AND lower ticket prices?

Eddy V · 14 Dec 2005, 20:42

Quote:

Originally Posted by JohnMiller

...lausitz? LOL.

You are right John, whenever I (have) to go there (and do I hate it), there are always the same people spectating.
I guess Lausitz pays some OAPs to fill the stands.

kipper · 14 Dec 2005, 21:11

Personally, I don't think the issue over finance is terribly significant. As has been pointed out in earlier responses Sheik Marktoum could probably fund the championship from the money found down the back of his settee. The issue over non-payments of bills seems to stem from the antics of Russia, which is probably no surprise given there repeated non attendence and performance defecit. Also, the championship is only a few races old and needs time to a) inform people of its existence, particuarly of those from a non-motorsport tradition and b) get a reputation as a championship that people want to watch, which could contribute to the poor crowds at the moment, bearing in mind that as far as I know the biggest crowds were at Brands and Eastern Creek (admittedly Lausitz would appear to be an exception).

**ScotsBrutesFan** · 14 Dec 2005, 22:35

In addition to it not being a weekend in Dubai, you also have to remember that there was no home team to bring locals out either.

That will be rectified next year when there will be a Team UAE...apparently (the Sheik's interview on Sky) the selection process has already begun to find their driver(s)