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<strong>2013</strong><br />
11<br />
93<br />
153<br />
161<br />
279<br />
Section One - Team by team <strong>2013</strong><br />
Red Bull: 12<br />
Ferrari: 18<br />
McLaren: 26<br />
Lotus: 34<br />
Mercedes: 42<br />
Sauber: 50<br />
Section Two - Circuits <strong>2013</strong><br />
Australia: 94<br />
Malaysia: 98<br />
China: 100<br />
Bahrain: 102<br />
Spain: 106<br />
Monaco: 108<br />
Canada: 112<br />
Britain: 116<br />
Germany: 118<br />
Hungary: 122<br />
Force India: 58<br />
Williams: 64<br />
Toro Rosso: 72<br />
Caterham: 78<br />
Marussia: 86<br />
Belgium: 126<br />
Italy: 128<br />
Singapore: 130<br />
Korea: 132<br />
Japan: 134<br />
India: 136<br />
Abu Dhabi: 140<br />
USA: 144<br />
Brazil: 150<br />
Section Three - Statistics and Insights<br />
Statistics: 154<br />
Section Four - Contacts<br />
Contacts: 162<br />
Section Five - Luxury<br />
Introduction: 282<br />
Amber Lounge: 292<br />
Gallery 2012: 300<br />
New York: 306<br />
EDITORIAL<br />
David Cushnan<br />
Eoin Connolly<br />
DESIGN<br />
Stuart Wright<br />
PRODUCTION<br />
Daniel Brown<br />
LISTINGS<br />
Rahul Bhatt<br />
PHOTOGRAPHS<br />
Action Images<br />
Press Association<br />
COMMERCIAL<br />
Nick Meacham<br />
Peter Jones<br />
Richard Partridge<br />
William Dobson<br />
Bhav Sahota<br />
Jessica Meade<br />
OPERATIONS<br />
Yéwandé Aruleba<br />
Black Book is published by:<br />
SportsPro Media Ltd<br />
Trans-World House, 100 City Road,<br />
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(SportsPro Media Ltd is part of the<br />
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<strong>NO</strong>TICES: Black Book is published annually.<br />
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BLACK BOOK <strong>2013</strong> l 3
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The <strong>2013</strong> agenda<br />
As the teams move towards<br />
a new Concorde Agreement,<br />
<strong>2013</strong> promises to be as<br />
dramatic a year off the track<br />
as on it<br />
All the evidence of pre-season<br />
testing indicated, if nothing else,<br />
that the <strong>2013</strong> Formula One world<br />
championship will be closely fought<br />
on the track, with a fast-improving<br />
Lotus and a rejuvenated Mercedes<br />
poised to challenge the established big<br />
three of Red Bull Racing, McLaren<br />
and Ferrari over the 19-race season.<br />
As ever, though, that is but one part<br />
of the story. Commercial intrigue and<br />
high politics have been at the heart<br />
of Formula One for decades, and the<br />
business soap opera behind the scenes<br />
was as enthralling as ever as the <strong>2013</strong><br />
grid assembled and the lights went out<br />
in Melbourne for the opening Grand<br />
Prix of the year.<br />
Top of the agenda for Formula One<br />
stakeholders is the finalisation of a new<br />
version of the Concorde Agreement,<br />
the complex but critical document<br />
which binds the 11 teams to the sport’s<br />
rule-makers and commercial rights<br />
holder. As the <strong>2013</strong> season began,<br />
there was no signed agreement in<br />
place. Whilst that is not ideal, it is<br />
not a commercial calamity; indeed,<br />
all the indications are that a deal will<br />
be struck, likely to cover the period<br />
between <strong>2013</strong> and 2020. The fiscal<br />
element, an inevitable sticking point in<br />
the past whenever a new commercial<br />
agreement has been negotiated, is not<br />
an issue: agreement has been reached<br />
between Formula One Group, which<br />
holds the sport’s commercial rights, and<br />
the teams over the share of revenues,<br />
garnered from venues and broadcast<br />
rights fees, the competitors will receive.<br />
While the deals are believed to have<br />
guaranteed each team a larger share<br />
of the piece, there has, once again,<br />
been no collective bargaining – a<br />
strategy which might have resulted in<br />
an even greater percentage of the pot<br />
heading their way. Instead, teams have<br />
negotiated separately and have accepted<br />
contracts which factor in elements such<br />
as their individual histories and recent<br />
records. Ferrari and Red Bull Racing<br />
have emerged as the biggest winners.<br />
While the financial discussions have<br />
largely been concluded – only lowly<br />
Marussia was awaiting a commercial<br />
offer as the season began in March<br />
– there remains a little way to go on<br />
the way future sporting and technical<br />
regulations are decided, with the<br />
teams and the sport’s sanctioning<br />
body, the FIA, all keen on as large an<br />
influence as possible. The importance<br />
of a binding, long-term agreement<br />
is paramount given the wider issue<br />
facing Formula One in <strong>2013</strong>, with<br />
CVC, the majority shareholders of<br />
Formula One Group, planning to float<br />
a percentage of the business at some<br />
point. When, precisely, nobody<br />
6 l BLACK BOOK <strong>2013</strong>
Red Bull’s new title sponsor,<br />
Infiniti, is just one of the<br />
brands to have sought a<br />
deeper involvement in<br />
Formula One this year<br />
knows but there has already been one<br />
attempt, which was quickly aborted<br />
last year as Facebook’s very public<br />
wobbles became clear.<br />
Speaking in an exclusive interview<br />
with the official Formula One website<br />
in March, Bernie Ecclestone, the chief<br />
executive of Formula One Group,<br />
suggested that a decision on when to<br />
float would be taken in the next three<br />
months. “Last year I thought that the<br />
markets were not ready,” he said, “but<br />
now it is getting more likely that there<br />
is an opportunity.”<br />
However, as Formula One and<br />
CVC seek long-term investment, there<br />
remain fundamental questions about<br />
the future leadership of the sport.<br />
Ecclestone is now 82 and while he<br />
remains as active – not to mention<br />
shrewd – as ever, the time is coming<br />
when questions over a viable succession<br />
plan will require some concrete<br />
answers. There is little public evidence<br />
of CVC formulating that plan,<br />
although there is clearly a more formal<br />
structure being assembled at Formula<br />
One Management headquarters in<br />
London. Understandably, perhaps,<br />
few in the sport are willing to publicly<br />
voice an opinion about the stewardship<br />
of Formula One post-Ecclestone, but<br />
would-be investors will require at<br />
least some kind of insight about<br />
what is planned.<br />
Despite a significant rise in the<br />
commercial revenues teams will<br />
receive under the new deals, which<br />
run until 2020, the lifeblood of a<br />
Formula One team remains investment<br />
by sponsors. In this regard, it has<br />
been a positive off-season for the<br />
sport – despite the failure of the<br />
tiny Spanish HRT team, which was<br />
forced to close its doors after three<br />
seasons. For the 11 remaining teams,<br />
times are undoubtedly tough but<br />
new sponsorship money is coming<br />
in: BlackBerry has joined forces with<br />
Mercedes in a deal said to be worth<br />
US$36 million over three years,<br />
and UPS has signed a wide-ranging<br />
partnership with Ferrari, which<br />
includes Formula One as a significant<br />
element. At a smaller level Coca-<br />
Cola has followed Unilever’s lead as<br />
a consumer brand entering the sport,<br />
signing a deal with the Lotus team for<br />
its Burn energy drink. Deeper, more<br />
integrated partnerships are forming<br />
up and down the pit-lane: Lotus’<br />
agreement with Microsoft Dynamics,<br />
which includes distinct commercial<br />
and technical elements, offering a case<br />
in point.<br />
Even Red Bull Racing, which has<br />
been largely fuelled by the energy drink<br />
dollars provided by its parent company<br />
since 2005, has joined the sponsorship<br />
8 l BLACK BOOK <strong>2013</strong>
<strong>2013</strong><br />
party, securing its first title partner in<br />
the form of Nissan-owned luxury car<br />
maker Infiniti. At McLaren, however,<br />
the hunt is on for a new title sponsor<br />
after Vodafone confirmed months of<br />
rumours by announcing in March it<br />
would not be extending its agreement<br />
with the team beyond the end of <strong>2013</strong>.<br />
In terms of central sponsorship,<br />
Formula One has perhaps never had it<br />
so good. Major new deals were struck<br />
over the winter with Rolex, which will<br />
see its green and gold corporate colours<br />
displayed at every race in its new role<br />
as the sport’s official timekeeper, and<br />
Dubai-based airline Emirates.<br />
“Formula One is one of the only<br />
true global sponsorships and what I<br />
mean by that is it goes to different<br />
markets every other week, for six<br />
to eight months of the year,” said<br />
Emirates’ head of sponsorship Roger<br />
Duthie, in an interview with SportsPro<br />
when the deal was announced in<br />
February. “It literally is a global<br />
sponsorship. We’ve always looked at<br />
partnerships that are prestigious, world<br />
class and, right now more importantly<br />
for us, that epitomise a lifestyle<br />
brand. That’s what we are trying to<br />
accomplish. We want to move from<br />
a travel brand to a lifestyle brand and<br />
that’s why we signed up with Formula<br />
One. It ticks all the boxes for us.”<br />
Duthie was full of praise for the way<br />
Ecclestone and Formula One worked<br />
on putting the deal, which involves<br />
branding at every race without an<br />
existing airline sponsorship, together.<br />
“One thing he said to us when we did<br />
the contract was, ‘Let’s put the contract<br />
aside now and let’s just make this work<br />
– if you guys need anything else, you<br />
just let us know and we’ll work with<br />
you,’” he added. “We said the same<br />
thing. We felt right away from the<br />
get-go the partnership is going to be<br />
strong. I have nothing but accolades for<br />
Bernie and his team.”<br />
Emirates’ branding will be visible<br />
at 15 of the 19 Grands Prix in <strong>2013</strong>,<br />
with the calendar reducing in size by<br />
one race for this year. The European<br />
Grand Prix, held since 2008 in the<br />
financially crippled city of Valencia,<br />
is off, while a proposed second race<br />
in the United States, on the streets of<br />
New Jersey with Manhattan’s skyline<br />
as a backdrop, has been postponed<br />
until 2014. A new Grand Prix in<br />
Russia is also scheduled for 2014 in the<br />
Olympic city of Sochi, but the <strong>2013</strong><br />
calendar features no new events.<br />
Despite the loss of one race it remains<br />
a punishing season for all involved, not<br />
least as this year there are but seven<br />
races in Europe, where all 11 teams<br />
continue to be based. Longer-term, it<br />
will probably make more financial sense<br />
for a Formula One team to be based<br />
somewhere in the Middle East, where<br />
Asia is more easily accessible.<br />
Of more immediate concern is the<br />
delicate economics of staging a Grand<br />
Prix, especially at venues which lack a<br />
direct annual injection of funds<br />
by government.<br />
In a sporting and technical sense,<br />
meanwhile, <strong>2013</strong> will provide an<br />
additional test for teams, each of which<br />
will have at least one eye on the many<br />
technical regulation changes that will<br />
come into effect in 2014. Teams will<br />
spend much of this season calculating<br />
the trade-off they must make between<br />
concentrating resources on developing<br />
this season’s cars and focusing on<br />
maximising the all-new package they<br />
must produce next year.<br />
Like so much in this everfascinating<br />
business, it will be a<br />
question of compromise.<br />
David Cushnan<br />
Editor<br />
Bernie Ecclestone has built<br />
Formula One in his own<br />
image but, at 82, he cannot<br />
keep speculation about<br />
potential successors quiet<br />
for much longer<br />
BLACK BOOK <strong>2013</strong> l 9
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Section One<br />
Team by team <strong>2013</strong><br />
1<br />
Red Bull: 12<br />
Ferrari: 18<br />
McLaren: 26<br />
Lotus: 34<br />
Mercedes: 42<br />
Sauber: 50<br />
Force India: 58<br />
Williams: 64<br />
Toro Rosso: 72<br />
Caterham: 78<br />
Marussia: 86
Red Bull Racing<br />
There was another double<br />
world crown for Red Bull<br />
Racing in 2012 but only<br />
after the technical team<br />
had got to grips with new<br />
regulations and got the RB7<br />
up to peak performance<br />
2012 in review: champions again<br />
To win a single world championship<br />
is a good achievement, to win<br />
two is great, but to win three is<br />
truly magnificent. Constructors’<br />
championship included, the Milton<br />
Keynes-based team fuelled by Dietrich<br />
Mateschitz’s Austrian energy drink<br />
dollars has now taken six of the last<br />
six Formula One titles. A period of<br />
sustained success is close to becoming<br />
an era of dominance. In just eight<br />
seasons, Red Bull Racing has become<br />
one of the world’s great sports teams.<br />
Sebastian Vettel’s third successive<br />
drivers’ title and a third constructors’<br />
championship in a row, however,<br />
came at the end of a 2012 season that<br />
was, for a variety of reasons, far more<br />
challenging for the team than either<br />
its breakthrough year in 2010 or its<br />
dominant 2011.<br />
While Vettel and chief technical<br />
officer Adrian Newey – rightly regarded<br />
as one of the greatest technical minds<br />
the sport has ever known – took the<br />
majority of plaudits at the end of a<br />
hard-fought season, team principal<br />
Christian Horner deserves a huge<br />
amount of credit for the way he<br />
mobilised his troops, kept motivation<br />
high during an energy-sapping 20-race<br />
campaign and a highly pressurised<br />
championship battle. Horner radiates<br />
an air of calm, save for his telltale<br />
nervous foot-tapping on the pit-wall,<br />
and has built a team that is the envy of<br />
the pit-lane. Operationally, Red Bull<br />
Racing is quite superb.<br />
Team players<br />
“They have always worked hard,”<br />
Horner said of his charges at the end<br />
of the season, “but this year has by<br />
far been our toughest challenge, it<br />
has been the hardest championship –<br />
constructors’ and drivers’ – as we have<br />
really had to fight our way back into<br />
them and that has made it the most<br />
gratifying in many respects.”<br />
The beginning of the year was<br />
especially difficult as Newey and his<br />
technical squad tried to get to grips<br />
with regulation changes outlawing<br />
blown diffusers, an area where the<br />
team had excelled in previous seasons,<br />
and initially unpredictable Pirelli<br />
tyres. While they worked on a fix,<br />
the team found itself in the unusual<br />
position of not being able to fight<br />
for victories; it wasn’t until race four,<br />
in Bahrain, that Vettel scored his<br />
first maximum of the year and even<br />
then Red Bull was nowhere near<br />
the supreme force of 2011. Newey’s<br />
efforts paid off, however, and by the<br />
end of the season the team had the<br />
car to beat once more, a significant<br />
package of upgrades introduced prior<br />
to the Singapore Grand Prix resulting<br />
in four successive victories which all<br />
but confirmed another constructors’<br />
title and thrust Vettel back into<br />
championship contention.<br />
Politically, meanwhile, Red Bull<br />
felt comfortable enough with its<br />
newfound status as one of the sport’s<br />
standout teams to break away from<br />
the Formula One Teams’ Association<br />
(FOTA) and follow Ferrari in seeking<br />
its own long-term commercial deal<br />
with the Formula One Group, at a<br />
stroke removing the prospect of all the<br />
teams striking a collective arrangement<br />
with Bernie Ecclestone and CVC for<br />
12 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
After the cakewalk of<br />
2011, Sebastian Vettel<br />
was made to play catchup<br />
in 2012, eventually<br />
overhauling Fernando<br />
Alonso after 16 races<br />
and confirming his<br />
greatness by completing<br />
a hat-trick of world titles<br />
the period up to 2020.<br />
Commercially, there was a clear sign<br />
of the team’s growing self-confidence<br />
at the end of the season when it was<br />
confirmed that Infiniti – the luxury<br />
car arm of Japanese manufacturer<br />
Nissan – was to upgrade its partnership<br />
and become title sponsor, as well as a<br />
technical collaborator, from <strong>2013</strong>. It is<br />
the first time Red Bull Racing has sold<br />
a title sponsorship position.<br />
Vettel joins the greats<br />
For Vettel, the route to a third<br />
world title in a row – a feat matched<br />
only by Juan Manuel Fangio and<br />
Michael Schumacher – was rather less<br />
straightforward than 2011. A patchy<br />
start to the season saw him rack up<br />
good points when the car was not at<br />
its most competitive, although his<br />
copybook was blotted by tagging<br />
backmarker Narain Karthikeyan in<br />
Malaysia. Even then, few would have<br />
believed that April’s victory at the<br />
controversial Bahrain Grand Prix would<br />
be his last until the end of September,<br />
when he returned to the top step<br />
in Singapore. In between he scored<br />
consistently, if not spectacularly, falling<br />
as many as 40 points behind Fernando<br />
Alonso at one stage during the summer.<br />
Two damaging alternator failures –<br />
for which the team placed the blame<br />
subtly, if squarely, at the feet of engine<br />
supplier Renault – in Valencia, whilst<br />
leading comfortably, and at Monza,<br />
were particularly costly.<br />
Post-Italy, however, Vettel flew.<br />
He dominated Formula One’s new<br />
Asian swing, scoring 100 points<br />
from a possible 100 with successive<br />
wins in Singapore, Japan, Korea and<br />
India, wrestling back control of the<br />
championship in the process. In Abu<br />
Dhabi, however, he was sent to the back<br />
of the grid after the team fuelled him<br />
short in qualifying, meaning there was<br />
not enough of a sample for the FIA<br />
to inspect. Red Bull started him from<br />
the pit-lane with an aggressive new<br />
set-up and Vettel drove superbly, whilst<br />
admittedly riding his luck on occasion,<br />
to reach the podium and limit the points<br />
loss to second-placed Alonso. Finishing<br />
runner-up to Lewis Hamilton in Texas<br />
meant Vettel was the firm favourite<br />
heading to the season finale in Brazil;<br />
first-lap contact, a spin to the back of<br />
the field, a recovery in mixed weather<br />
with a damaged car and, ultimately,<br />
sixth place was enough to claim a third<br />
championship at a sprightly 25 years of<br />
age in the most dramatic of fashions.<br />
While the relentless Vettel joined<br />
the greats, Mark Webber had a Mark<br />
Webber kind of season. There were<br />
magnificent highs, such as a brilliantly<br />
controlled drive to win the Monaco<br />
Grand Prix and victory at Silverstone,<br />
where he stalked, then passed, Alonso<br />
late in the race. But there also came<br />
a series of anonymous races where he<br />
was never in contention for a podium.<br />
The team barely hesitated in re-signing<br />
the Australian for <strong>2013</strong> mid-season,<br />
although his championship challenge<br />
faded in frustrating fashion soon<br />
afterwards. For Webber, the statistics<br />
are stark: since 2009, the year Vettel<br />
took Red Bull Racing’s first victory,<br />
the German has collected 264.5 more<br />
points, 24 more pole positions and won<br />
16 more Grands Prix. Webber is an<br />
excellent Grand Prix driver no doubt,<br />
but he is paired with a truly great one.<br />
BLACK BOOK <strong>2013</strong> l 13
There will be a slightly<br />
unfamiliar look to Adrian<br />
Newey’s RB8, with a tinge<br />
of purple added to the Red<br />
Bull colour scheme after<br />
the arrival of the team’s<br />
first title sponsor, luxury car<br />
brand Infiniti<br />
<strong>2013</strong>: Business<br />
Red Bull Racing has a target on its back<br />
going into <strong>2013</strong>, nearly nine years after<br />
the energy drink’s founder Dietrich<br />
Mateschitz took the plunge and bought<br />
the soon-to-be-closed Jaguar team from<br />
Ford at the end of the 2004 season.<br />
They are the team everyone must beat<br />
if they want a shot at winning a world<br />
championship this year.<br />
It took a while for Red Bull<br />
Racing to reach the lofty position<br />
it now occupies, but the key early<br />
decisions have been worth their<br />
weight in gold: Christian Horner,<br />
then a Formula 3000 team boss, was<br />
hired immediately to head up the<br />
team going into its debut season in<br />
2005. Nine years on, he has firmly<br />
established himself as one of the<br />
sport’s elite team principals.<br />
Backed by Mateschitz – who<br />
maintains a watching brief and has<br />
Helmut Marko, Red Bull’s motorsport<br />
consultant, installed with the team<br />
as his eyes and ears at the race track<br />
– Horner navigates the politics of<br />
the team and Formula One with<br />
considerable nous. His primary job<br />
this season, on the face of it, would<br />
appear to be keeping motivation high<br />
after three successive years of glittering<br />
success. If the strings are ultimately<br />
pulled in Austria, Red Bull Racing’s<br />
heart is certainly in Milton Keynes,<br />
where the team itself is based.<br />
“The way we work is open and<br />
transparent,” Horner said, speaking in<br />
February. “We concentrate on being<br />
a Formula One team and nothing<br />
more. Our focus is very much on going<br />
racing and trying to get the best out<br />
of ourselves. Even when we’ve had<br />
very good weekends – and very good<br />
years – we know there are always areas<br />
in which we can make improvements.”<br />
Horner, who signed a new contract<br />
with Red Bull over the winter, is also<br />
tasked with tying down key assets<br />
Adrian Newey and Sebastian Vettel to<br />
long-term contracts.<br />
Commercially, there is an increasing<br />
maturity about the team too. Infiniti<br />
14 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Vettel is now the<br />
undisputed team<br />
leader at Red Bull but<br />
faces the pressure of<br />
being the undoubted<br />
favourite for a fourth<br />
straight world<br />
championship win<br />
has upped its investment in the team to<br />
become its first title sponsor, its purple<br />
corporate colours integrated into the<br />
now-familiar car livery. “While the<br />
first two years was all about visibility<br />
and brand awareness, I think now<br />
this is our chance to go deeper into<br />
shaping opinion and getting people<br />
to understand that we make cars and<br />
not speakers or a bank or insurance<br />
product,” said Andreas Sigl, the Nissanowned<br />
luxury car manufacturer’s global<br />
director of Formula One. “We will be<br />
more visible, but I think in a tasteful<br />
and creative way.”<br />
An increased technical collaboration<br />
is a new component of the deal, which<br />
represents a natural progression in<br />
the relationship for Horner. “The<br />
exciting thing for Red Bull Racing as<br />
an independent team is that previously<br />
we haven’t had access to the type of<br />
R&D facilities a group like Infiniti<br />
and Nissan has at its disposal,” he<br />
said. “It’s exciting for us and our<br />
engineering group to have those<br />
opportunities. We have a number of<br />
different initiatives already running on<br />
future technologies and future projects<br />
and more in the pipeline for the<br />
duration of this relationship.<br />
Horner added: “This type of<br />
partnership is part of the evolution of<br />
the team. It’s something that Red Bull<br />
wanted to do when we first came into<br />
Formula One but we wanted to do<br />
it with the right partner. We’ve been<br />
selective in who we’ve looked at. The<br />
relationship with Infiniti has grown<br />
over the past couple of years and has<br />
naturally developed into a<br />
title partnership.”<br />
Red Bull’s crop of other<br />
longstanding partners, including<br />
beer brand Singha, Total, Geox,<br />
Casio and Pepe Jeans, predictably<br />
remain on board for <strong>2013</strong>. Topped<br />
up by its parent company’s substantial<br />
investment, an upscaled deal with<br />
Infiniti, and its latest championshipwinning<br />
share of centralised funding<br />
from the Formula One Group, the<br />
team’s budget is one of the healthiest<br />
in the pit-lane.<br />
BLACK BOOK <strong>2013</strong> l 15
Red Bull team principal<br />
Christian Horner began as<br />
one of the youngest team<br />
principals in the history of<br />
Formula One. Now, as one<br />
of the most successful, his<br />
biggest task will be keeping<br />
his all-conquering team<br />
hungry for the challenges<br />
that lie ahead.<br />
<strong>2013</strong>: Sporting<br />
The RB9, the ninth Red Bull Racing<br />
Formula One car, was launched at the<br />
team’s headquarters in Milton Keynes<br />
on the first weekend of February, a<br />
base where the two-storey trophy<br />
cabinet in reception underlines just<br />
how successful it has been since<br />
recording its first Grand Prix victory<br />
in 2009 and its first titles a year later.<br />
The car is, predictably enough,<br />
an evolution of the championshipwinning<br />
RB8. “It’s all in the details<br />
rather than saying the gains are in this<br />
or that,” said chief technical officer<br />
Adrian Newey in February.<br />
“We’ve tidied up some bits we<br />
thought could be improved upon –<br />
but as is usual these days, this is a car<br />
in transition. There will be one or<br />
two new parts appearing by the first<br />
race, which I’m sure is the same for<br />
everybody. After that it’s going to be<br />
about development through the year.”<br />
While Newey is readying himself<br />
for a season-long development race,<br />
he, like his fellow technical chiefs up<br />
and down the pit-lane, is acutely aware<br />
of the balance that needs to be struck<br />
between <strong>2013</strong> car development and<br />
ensuring the team is ready for the 2014<br />
season, when a series of major technical<br />
regulation changes come into effect.<br />
Newey has conceded it will require<br />
some “difficult decisions” about<br />
resourcing in <strong>2013</strong>. “We’ve got heads<br />
of department Rob Marshall [chief<br />
designer], Peter Prodromou [head of<br />
aerodynamics] and Mark Ellis [chief<br />
engineer, vehicle dynamics] wearing two<br />
hats now: overseeing 2014 but also all<br />
putting effort into <strong>2013</strong>,” he said. “It’s a<br />
difficult balance and one each team will<br />
handle differently, probably depending<br />
on how their <strong>2013</strong> championship<br />
is going. The teams that feel they’re<br />
in with a chance this year will keep<br />
pushing, those that have their future<br />
secure but aren’t in a title fight will<br />
probably switch their efforts earlier.” In<br />
2011, Red Bull secured a new five-year<br />
deal to be a premium partner of engine<br />
supplier Renault, with whom close<br />
collaboration will be essential as the new<br />
1.6-litre V6 turbo era dawns.<br />
For the fifth consecutive season<br />
Red Bull Racing will field the same<br />
driver line-up, with Sebastian Vettel<br />
chasing his fourth consecutive world<br />
championship and Mark Webber<br />
retained for a seventh year. The<br />
Australian hesitated only slightly before<br />
signing a one-year extension to his<br />
contract midway through last season<br />
son<br />
but again faces the challenging g prospect<br />
pect<br />
of going head-to-head with the all-<br />
l<br />
conquering champion. There is one<br />
key change this year: Webber has a new<br />
16 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Red Bull Racing<br />
* Cash component to deal<br />
Sponsor Total Value Contract Start Contract End Status Sector<br />
Red Bull US$110m* November 2004 Ongoing Owner Beverage<br />
Infiniti US$31m* March 2011 December 2016 Title partner Automotive<br />
Total US$18m* February 2009 Undisclosed Team Partner Oil/Fuel<br />
Rauch US$4m* February 2005 Undisclosed Team Partner Beverage<br />
Geox US$2m* February 2011 Undisclosed Team Partner Fashion<br />
Pepe Jeans US$2m* February 2010 Undisclosed Team Partner Fashion<br />
Casio US$0.8m* January 2005 December <strong>2013</strong> Team Partner Watch<br />
Singha Beer US$0.5m* March 2010 Undisclosed Team Partner Beverage<br />
Platform Computing US$0.5m Janaury 2007 Undisclosed Innovation Partner Technology<br />
Siemens US$1m Janaury 2005 Undisclosed Innovation Partner Technology<br />
ANSYS US$0.3m January 2010 Undisclosed Innovation Partner Technology<br />
Hexagon Metrology US$0.5m January 2007 Undisclosed Innovation Partner Technology<br />
DMG US$0.3m May 2010 Undisclosed Innovation Partner Automotive<br />
OZ Wheels US$0.2m January 2009 Undisclosed Innovation Partner Automotive<br />
PWR Performance US$0.1m January 2012 Undisclosed Innovation Partner Automotive<br />
Other Income<br />
FOM TV US$95m January 2009 December 2012 TV monies -<br />
Total<br />
US$266.2m<br />
race engineer, with former Lotus man<br />
Simon Rennie replacing Lotus-bound<br />
Ciaron Pilbeam.<br />
Over the winter, Webber also had<br />
to contend with the typically unsubtle<br />
public musings of Helmut Marko,<br />
Red Bull’s motorsport consultant.<br />
“It seems to me that Webber has on<br />
average two races per year where he is<br />
unbeatable, but he can’t maintain this<br />
form throughout the year,” Marko told<br />
Red Bull’s Red Bulletin magazine. “And<br />
as soon as his prospects start to look<br />
good in the world championship, he<br />
has a little trouble with the pressure<br />
that this creates.” Factually sound it<br />
may have been, it was hardly what<br />
Webber needed to hear from, in theory<br />
at least, one of his own. “Everyone has<br />
their own agendas and it’s been evident<br />
for a long time now that I’ve never<br />
been a part of Marko’s,” was Webber’s<br />
terse response. More than ever, Webber<br />
is racing in a team built around Vettel.<br />
The German goes into only his fifth full<br />
season in Formula One as an obvious<br />
championship favourite.<br />
TOTAL<br />
US $18m<br />
RED BULL<br />
US $110m<br />
INFINITI<br />
US $31m<br />
RAUCH<br />
US $4m<br />
BLACK BOOK <strong>2013</strong> l 17
Ferrari<br />
Ferrari made a better start<br />
than might have been<br />
expected in 2012 given the<br />
poor performance of its<br />
car in early testing and in<br />
qualifying at Melbourne<br />
2012 in review: so near and yet so far<br />
When Fernando Alonso skittled<br />
backwards into the gravel trap during<br />
qualifying for the season-opening<br />
Australian Grand Prix he could hardly<br />
have dared imagine that 20 races and<br />
the best part of eight months later he<br />
would finish just three points shy of<br />
a third world championship – and<br />
after, in all probability, the season of<br />
his career.<br />
Ferrari qualified 12th and 16th on<br />
the grid in Melbourne, a not entirely<br />
unexpected showing following dreadful<br />
testing form. The car, with its stepped<br />
front section, was as ugly as it was slow.<br />
It didn’t get much prettier, but at least<br />
lap times improved over the course<br />
of the year. Alonso’s dramatic victory<br />
in the rain-soaked Malaysian Grand<br />
Prix, the year’s second race, was a huge<br />
surprise and instilled some muchneeded<br />
confidence in a team that had<br />
been widely condemned in Italy after<br />
such a dismal start.<br />
Reflecting on the season, team<br />
principal Stefano Domenicali – a man<br />
under pressure at the best of times, not<br />
only from the Italian public but also<br />
Ferrari president and showman Luca<br />
di Montezemolo – said simply: “What<br />
was lacking was the car, despite the<br />
fact we staged a recovery after a very<br />
complicated start.”<br />
Alonso’s stellar year<br />
In the middle part of the season,<br />
Alonso made the most of some muchneeded<br />
improvements to the car; he<br />
scored in each of the first 11 races,<br />
including six podiums, and took a<br />
quite brilliant victory, from 11th on<br />
the grid, at home in Valencia. It was a<br />
result which sparked a rare outbreak of<br />
tears on the podium and was perhaps<br />
the highlight of a truly extraordinary<br />
season from the Spaniard. He was<br />
opportunistic whenever he could be,<br />
whether it was in taking advantage<br />
of the weather at Silverstone and<br />
Hockenheim to put the car higher on<br />
the grid than it deserved to be – he<br />
finished second and first in those<br />
races – or in a series of swashbuckling<br />
first laps. Even on the occasions when<br />
Ferrari erred on strategy – in Canada<br />
and Britain Alonso found himself out<br />
front in the late laps only for rivals on<br />
fresher rubber to pass – it was largely<br />
because of him that the team was in a<br />
potentially winning position.<br />
“I’d score Fernando’s season a ten,”<br />
Domenicali said. “He is a fantastic<br />
driver, who combines his amazing talent<br />
with our group of people, protective<br />
when he needs to be and pushing in<br />
the right direction when things are not<br />
going as they should. It’s a privilege to<br />
have him as part of our team.”<br />
It is also remarkable that Alonso<br />
has not been world champion since<br />
2006 but has now lost three world<br />
championships, in 2007, 2010 and<br />
2012, at the final race of the season.<br />
Nonetheless, he is currently the sport’s<br />
most complete driver and undoubtedly<br />
18 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Fernando Alonso again<br />
carried Ferrari on his<br />
shoulders in 2012,<br />
producing a string of<br />
fine drives and, for the<br />
third time in his career,<br />
only missing out on<br />
the drivers’ title at the<br />
final race<br />
one of the greatest it has known.<br />
Alonso’s consistency meant that,<br />
despite at no point having the fastest<br />
car, he was still able to lead the world<br />
championship for much of the summer.<br />
Two first-corner incidents, however,<br />
proved dramatic setbacks in his title<br />
challenge. At Spa he was deeply<br />
unfortunate to be taken out by a piece<br />
of driving by Romain Grosjean that was<br />
rash at best and brainless at worst; at<br />
the same time, Alonso was lucky not to<br />
be seriously injured as Grosjean’s Lotus<br />
slashed across the front of the Ferrari’s<br />
cockpit. The incident at the start of the<br />
Japanese Grand Prix was less clearcut,<br />
Alonso and Raikkonen brushing<br />
together in the rush to turn one, cutting<br />
the Ferrari’s tyre.<br />
Teamwork rules<br />
Ultimately, the team did not build a<br />
car capable of winning the title and<br />
late in the season it was abundantly<br />
clear that the technical department,<br />
now led by former McLaren man Pat<br />
Fry, was not able to extract any more<br />
performance. Alonso found himself<br />
relying increasingly on flying starts,<br />
having often qualified well down the<br />
grid. Operationally, however, the team<br />
was near flawless. “We definitely had<br />
the best driver, the best reliability and<br />
a level of excellence when it comes to<br />
the work on the pit wall and during the<br />
pit-stops,” Domenicali said. “We also<br />
lacked a bit of luck, especially with the<br />
incidents at Spa and Suzuka.”<br />
Ferrari also stretched the spirit of<br />
the sporting regulations to the limit,<br />
deliberately breaking a seal on Felipe<br />
Massa’s gearbox before the race in Texas<br />
and activating a five-place grid penalty<br />
for the Brazilian. The team reasoned<br />
that by moving Massa, who, unusually,<br />
had out-qualified Alonso, the senior<br />
driver would switch to the cleaner side<br />
of the grid and have the best chance<br />
of capitalising at the start. It was more<br />
than a little cynical but nobody could<br />
argue that it didn’t work like a dream;<br />
Alonso finished the race third and kept<br />
himself in title contention.<br />
Taken as a whole Massa had<br />
a very poor seventh season with<br />
Ferrari, although his form improved<br />
considerably late in the year. A contract<br />
extension, granted after months of<br />
speculation that Ferrari were looking<br />
for a replacement, probably helped.<br />
The Brazilian scored points in each<br />
of the last ten races with two podium<br />
finishes, a second place at Suzuka and<br />
an emotional third at home in Brazil.<br />
His most impressive drive, however,<br />
was arguably his recovery from that<br />
team-induced 12th on the grid to<br />
fourth in Austin. However, the start of<br />
the year was forgettable: five times he<br />
finished outside the points, a situation<br />
exacerbated by the relative miracles<br />
Alonso was performing in the same<br />
car. Massa stays for <strong>2013</strong>, but unless<br />
there is a major improvement in form it<br />
looks likely to be his swansong year for<br />
the team.<br />
Ferrari, largely via di Montezemolo,<br />
continued to offer strident opinions<br />
on several aspects of the sport in 2012,<br />
including cost-cutting measures and<br />
the lack of testing. In commercial<br />
terms, however, the team is well set.<br />
It broke away from the Formula One<br />
Teams’ Association (FOTA) before<br />
the start of the season and, as has<br />
become traditional, negotiated its<br />
own new commercial arrangement.<br />
The company as a whole continues<br />
to grow as the brand seeps into new<br />
markets, such as China and Brazil,<br />
while the Formula One operation has<br />
a roster of long-term partners that<br />
remains the envy of much of the grid.<br />
Ferrari had it all in 2012, apart from a<br />
championship-winning car.<br />
BLACK BOOK <strong>2013</strong> l 19
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US $36m<br />
<strong>2013</strong>: Business<br />
Although Ferrari’s sales in Italy fell<br />
by 46 per cent in 2012, its overall<br />
business appears in rude health.<br />
Overall revenues rose by eight per<br />
cent on 2011, to €2.433 billion, with<br />
7,318 cars delivered. Net profits grew<br />
17.8 per cent to €244 million. Sales<br />
in China rose by four per cent, Japan<br />
was up 14.4 per cent and the US,<br />
Ferrari’s largest market, by 14.6 per<br />
cent. Merchandising and licensing<br />
continue to be big business around<br />
the world, too, with Ferrari reporting<br />
retail sales up five per cent and<br />
licensing up 22 per cent: it has long<br />
been a fact that Ferrari sells far more<br />
caps than cars.<br />
The Scuderia, meanwhile, has<br />
further bolstered its much-envied<br />
commercial portfolio between seasons,<br />
drawing Swiss luxury watch brand<br />
Hublot into racing activities – a<br />
natural progression from the wider<br />
deal the company signed with Ferrari<br />
in 2011 – and signing extensions<br />
to deals with anti-virus computer<br />
software manufacturer Kaspersky Lab<br />
and energy drinks brand TNT. There<br />
is also a new name on the car, with<br />
Weichai Power becoming Ferrari’s first<br />
Chinese sponsor.<br />
“I think we can legitimately claim<br />
with satisfaction to have bucked the<br />
current trend in sponsorship, not<br />
only as regards Formula One, but also<br />
when looking at sport in general,” said<br />
team principal Stefano Domenicali in<br />
comments published on the Ferrari<br />
website in early February. “These<br />
are significant achievements, which<br />
alongside the vital support of our<br />
long-time partners such as Philip<br />
Morris and Shell and more recent<br />
ones like Santander, strengthen our<br />
position going into what will be a very<br />
demanding season, from every point<br />
of view.”<br />
Every season Ferrari does not<br />
win a world championship sees the<br />
pressure on the team, from Italy,<br />
ratchet up another couple of notches.<br />
Domenicali, though, continues<br />
to impress, even if championships<br />
have eluded the red cars since 2008.<br />
Luca di Montezemolo, meanwhile,<br />
continues to flirt with a political<br />
career in Italy but remains at the helm<br />
as president. Speaking immediately<br />
after the team’s <strong>2013</strong> car, the F138,<br />
was launched at Maranello in early<br />
February, his enthusiasm for the team<br />
seemed undimmed. “Apart from my<br />
family,” he said, “Ferrari is the most<br />
important thing in my life and every<br />
time I walk into the factory, even<br />
after all these years, it puts me in a<br />
good mood and I continue to get new<br />
stimuli and ideas.”<br />
Di Montezemolo, president of<br />
Ferrari since 1991, is a veteran<br />
of Formula One politics and also<br />
understands the power that Ferrari<br />
continues to wield. When the company<br />
wants to make a point the sport still<br />
finds itself stopping and listening.<br />
Away from the track, Ferrari will<br />
spend <strong>2013</strong> constructing a new<br />
facility to house its race team, which<br />
will be located alongside its existing<br />
headquarters in Maranello in an area<br />
currently used as a car park. Ground<br />
was broken in January on a project<br />
planned ‘in accordance with guidelines<br />
inspired by the practicality, efficiency<br />
and style that characterise the Formula<br />
One programme’. The hope is it will<br />
not prove a distraction in a year when<br />
Ferrari has to deliver.<br />
“The <strong>2013</strong> season will be a complex<br />
one from many points of view,” is<br />
Domenicali’s verdict. “We face a few<br />
changes on the technical front which<br />
will have a significant impact on all<br />
areas of the company, not just in terms<br />
of design, but also when it comes to<br />
the investment and infrastructure<br />
required to develop the new engine.<br />
Within the limits imposed by the<br />
regulations, we need to put every<br />
effort into reaching our objectives,<br />
while making the best use of the<br />
timescale in preparing for 2014.<br />
“Our aim is clear, to win, and the<br />
priority is still that of giving our<br />
drivers a car that will be competitive<br />
right from the very start.”<br />
22 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Luca di Montezemolo<br />
(below, left centre)<br />
has kept faith with<br />
Felipe Massa (left) and<br />
team principal Stefano<br />
Domenicali (right) for<br />
<strong>2013</strong>, but both will<br />
know that to stay with<br />
the team they need to<br />
provide stellar support<br />
to Alonso’s title push<br />
BLACK BOOK <strong>2013</strong> l 23
Domenicali made<br />
significant structural<br />
changes to Ferrari’s design<br />
team ahead of the launch of<br />
the F138, which does away<br />
with the ‘stepped’ nose that<br />
was so prominent on the<br />
2012 model<br />
<strong>2013</strong>: Sporting<br />
Ferrari cannot afford to race with a car<br />
with as many fundamental deficiencies<br />
as its 2012 machine this season, so it<br />
was promising to hear Felipe Massa’s<br />
positive initial verdict on the F138<br />
after February’s first testing run.<br />
Whether that will translate into a<br />
genuine title challenge remains to be<br />
seen, but nothing less than a sustained<br />
run at the big prizes will do.<br />
Before Christmas, Domenicali<br />
announced structural changes<br />
to Ferrari’s senior staff structure,<br />
primarily to take into account the<br />
increased workload of building a car<br />
that will meet the new 2014 technical<br />
regulations. Simone Resta and Fabio<br />
Montecchi were both promoted to<br />
deputy chief designer roles, working<br />
under chief designer Nikolas Tombazis.<br />
Resta is working on the <strong>2013</strong> car,<br />
while Montecchi takes the lead on the<br />
2014 project. “It became clear there<br />
were too many demands on my time<br />
overseeing both the mechanical and<br />
aerodynamic aspects,” Tombazis said.<br />
“My role has evolved to oversee these<br />
activities, while freeing up time for<br />
me to spend on specific aerodynamic<br />
issues and on adopting a more creative<br />
approach. Over the last few years,<br />
Formula One has become ever more<br />
sophisticated so one person can no<br />
longer do every single thing.”<br />
An unhelpful but unavoidable<br />
problem in <strong>2013</strong> will be that the team<br />
will have to conduct its aerodynamic<br />
development work remotely, utilising<br />
Toyota’s wind tunnel in Germany<br />
while its own facility in Maranello<br />
24 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Ferrari<br />
* Cash component to deal - **UPS partnership with Ferrari is company-wide and not Formula One specific<br />
Sponsor Total Value Contract Start Contract End Status Sector<br />
Philip Morris Int. US$100m* January 1983 December 2015 Sponsor Tobacco<br />
Fiat US$6m* January 1969 Ongoing Sponsor Automotive<br />
Santander US$40m* January 2010 December 2017 Sponsor Financial<br />
Shell US$36m* January 1996 December 2015 Sponsor Oil/Fuel<br />
UPS US$24m** February <strong>2013</strong> Undisclosed Sponsor Other<br />
Weichai Power US$2m* January <strong>2013</strong> Undisclosed Sponsor Technology<br />
TNT US$2m* March 2012 December 2014 Sponsor Beverage<br />
Kaspersky Lab US$2m* November 2010 December <strong>2013</strong> Sponsor Technology<br />
Hublot US$1m* November 2011 Undisclosed Sponsor Watch<br />
Puma US$16m* January 2004 Undisclosed Official Supplier Fashion<br />
OMR US$0.5m* January 2010 Undisclosed Official Supplier Automotive<br />
Infor US$0.1m* January 2012 Undisclosed Official Supplier Automotive<br />
SKF US$0.5m* April 2001 Undisclosed Official Supplier Automotive<br />
Mahle US$0.2m* January 2012 Undisclosed Official Supplier Automotive<br />
Magneti Marelli US$0.5m* January 2004 Undisclosed Official Supplier Automotive<br />
NGK US$0.3m* January 2001 Undisclosed Official Supplier Automotive<br />
Iveco US$0.8m* January 2002 Undisclosed Official Supplier Automotive<br />
Brembo US$0.3m* January 2004 Undisclosed Official Supplier Automotive<br />
OZ US$0.1m* January 2012 Undisclosed Supplier Automotive<br />
Schuberth US$0.2m January 2009 Undisclosed Supplier Automotive<br />
TechnoGym US$0.2m January 2009 Undisclosed Supplier Automotive<br />
Other Income<br />
FOM TV US$104m January 2009 December 2012 TV monies -<br />
Total<br />
US$336.7m<br />
is upgraded after being taken out of<br />
service last year. “The ideal solution<br />
would be to have the wind tunnel right<br />
here,” conceded Tombazis, speaking<br />
from Maranello. “I cannot say that<br />
having a wind tunnel in Cologne is the<br />
perfect solution but weighing up the<br />
medium and long-term advantages of<br />
having an upgrade on our wind tunnel<br />
or carrying on as it was, we concluded<br />
that our current strategy was the<br />
best. We have taken steps to ensure<br />
communications and logistics are as<br />
effective as possible in <strong>2013</strong>. But still,<br />
wherever the wind tunnel, the most<br />
important thing is to have good ideas<br />
and aerodynamic development and a<br />
good facility.”<br />
If Fernando Alonso is to win the<br />
team the world championship it and<br />
he both crave, only a good base car<br />
and a programme of season-long<br />
development will do. For Alonso<br />
himself, it may be difficult to replicate<br />
2012 given the consistency and<br />
excellence he displayed throughout<br />
last season. The Spaniard took the<br />
intriguing decision to skip the first<br />
test of the year at Jerez to give himself<br />
more physical preparation time<br />
for what will be another gruelling<br />
season, with Massa and new Ferrari<br />
reserve Pedro de la Rosa – hired<br />
predominantly for his experience and<br />
simulator abilities – handling the<br />
initial driving duties. If Ferrari give<br />
him the car, however, Alonso will<br />
contend in <strong>2013</strong>. The team has huge<br />
confidence in him.<br />
Massa, meanwhile, appears<br />
rejuvenated by the faith show in him<br />
in 2012. A good start to the year will<br />
be vital, especially given he is only<br />
contracted until the end of the season.<br />
The Brazilian’s stay at the team beyond<br />
that point depends entirely on his<br />
performances in <strong>2013</strong>. A return to the<br />
top of the podium, for the first time<br />
since 2008, would certainly help his<br />
case. It would also be amongst the<br />
most popular results of the year.<br />
BLACK BOOK <strong>2013</strong> l 25
McLaren<br />
Lewis Hamilton’s<br />
performances on<br />
the track in 2012<br />
were a considerable<br />
improvement on the<br />
previous year but he still<br />
cut a frustrated figure at<br />
McLaren and in October<br />
confirmed his move<br />
to Mercedes<br />
2012 in review: the one that got away<br />
McLaren will reflect on the 2012<br />
season as the one that got away. The<br />
team should have been competing<br />
for both world championships right<br />
to the end but instead failed to make<br />
the most of what, at times, was the<br />
fastest car on the grid. In the final<br />
reckoning it was even pipped to the<br />
post for second place in the world<br />
championship by Ferrari – a source of<br />
professional disappointment and real<br />
financial pain given that the difference<br />
between second and third might equate<br />
to as much as US$10 million in prize<br />
money and travel benefits.<br />
McLaren needs no reminding that<br />
it is now 14 years since it last won a<br />
constructors’ crown. But for Lewis<br />
Hamilton’s 2008 drivers’ title the team<br />
would not have taken a championship<br />
of any sort this century, a remarkable<br />
state of affairs given its prestige,<br />
professionalism and resources. It is not<br />
that McLaren fails to build a winning<br />
car – it has won at least one Grand Prix<br />
every year since 1996 and scored seven<br />
victories in 2012, the same number<br />
as Red Bull – but there is clearly a<br />
problem in closing out titles.<br />
Through a combination of finger<br />
and equipment trouble during pitstops<br />
and puzzlingly poor reliability<br />
during races, McLaren somehow<br />
contrived to finish 82 points shy of<br />
Red Bull over 20 races. And yet the<br />
team won the opening race of the year<br />
in Melbourne in some style and took<br />
the last two victories of the season in<br />
Austin and São Paulo.<br />
“We’ve faltered a little bit this year,”<br />
said team principal Martin Whitmarsh<br />
after the penultimate race in Texas as<br />
he reflected on 2012. “We’ve had a<br />
quick car, we haven’t done as good a<br />
job as we’d expect of ourselves.”<br />
The initial speed of the car –<br />
noticeably, it was one of the few new<br />
2012 entries that lined up in Melbourne<br />
without an ugly ‘stepped’ nose – saw<br />
Jenson Button to victory in Australia,<br />
but the team failed to capitalise on its<br />
early advantage as it might have done.<br />
Lewis Hamilton, in particular, was<br />
delayed on several occasions in the<br />
pits as the crew seemingly rushed its<br />
attempts to deliver sub three-second<br />
tyre changes; by the end of the year<br />
it had cracked it and then some, but<br />
process and equipment revisions<br />
certainly cost McLaren points early in<br />
the year. Hamilton was also denied a<br />
possible victory in Barcelona when, after<br />
he had qualified on pole, it emerged<br />
the team had mistakenly not fuelled<br />
his car sufficiently to deliver the sample<br />
required by the FIA. The Englishman<br />
was demoted to the back and although<br />
he recovered to eighth by the chequered<br />
flag it was more points lost.<br />
Farewell, Lewis<br />
If a series of erratic performances<br />
from Hamilton let his team down in<br />
2011, the reverse was true in 2012.<br />
He drove quite superbly all year – only<br />
a clash with Pastor Maldonado in<br />
the closing laps at Valencia could be<br />
considered a major driving miscue<br />
and even that was debatable – and<br />
deserved better than his eventual<br />
fourth place in the championship,<br />
26 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Jenson Button had<br />
hoped to put together a<br />
title challenge in 2012<br />
but was let down by a<br />
car with reliability issues<br />
whose performance<br />
faded as the year<br />
wore on<br />
some 91 points behind Vettel. His<br />
sixth season in Formula One was,<br />
however, his last with McLaren, the<br />
team that funded his development<br />
and fine-tuned his talent. Hamilton’s<br />
dramatic decision to join Mercedes<br />
in <strong>2013</strong> came early in October after<br />
weeks of speculation and also when<br />
his relationship with McLaren was, in<br />
some respects at least, strained. At just<br />
the time he was making his decision<br />
over whether to re-sign or leave – with<br />
former world champion Niki Lauda in<br />
his ear strongly making the case for a<br />
risky switch to Mercedes – there was<br />
a sense that for all Hamilton’s talent<br />
McLaren had grown a touch tired of<br />
its former child prodigy. The tiredness<br />
turned to thinly disguised frustration<br />
when Hamilton misguidedly – and<br />
frankly bizarrely – tweeted a picture<br />
of a confidential telemetry trace<br />
between his and Button’s qualifying<br />
laps on race morning at Spa. It was<br />
immature at best, but perhaps at the<br />
critical moment of negotiation shortly<br />
afterwards McLaren didn’t fight to<br />
keep Hamilton quite as hard as it<br />
might have done. Within weeks his<br />
mind was made up and for the rest of<br />
the season there seemed more than a<br />
tinge of regret on both sides.<br />
Fading away<br />
As Hamilton mulled over his future,<br />
Button’s championship challenge<br />
faded away in much the same manner<br />
as Mark Webber’s would a couple of<br />
months later. Despite bookending<br />
the season with victories and taking a<br />
brilliant, dominant win in Belgium,<br />
Button struggled many times to make<br />
his Pirelli tyres work and also suffered<br />
several reliability problems. A terrible<br />
run of six races between Bahrain and<br />
Britain yielded a best result of eighth<br />
place and although there were six visits<br />
to the podium and 14 points finishes<br />
out of 20, it was nothing like enough<br />
to sustain any form of serious bid for<br />
the title. That said, on his day, Button<br />
remains a world-beater. The 2009<br />
world champion, a man very much<br />
at home at McLaren, will be<br />
the team leader in <strong>2013</strong> as young<br />
Mexican Sergio Perez steps in to<br />
replace Hamilton.<br />
With McLaren’s long-time engine<br />
provider Mercedes having extricated<br />
itself, via its Daimler parent, from its<br />
McLaren shareholding in a complicated<br />
process which was finally resolved at<br />
the start of 2012, the team faces the<br />
prospect of paying for its supply from<br />
<strong>2013</strong> onwards. Although it remains<br />
one of the best-funded in Formula One<br />
– and the team with, by some distance,<br />
the most state of the art base – its title<br />
sponsorship agreement with Vodafone<br />
will also expire at the end of <strong>2013</strong>.<br />
McLaren Group’s burgeoning road<br />
car division – a project shaped by<br />
chairman Ron Dennis – has been<br />
formally separated from the racing<br />
element of the team, whilst its<br />
Applied Technologies division is<br />
finding an increasingly diverse range<br />
of clients in various industries from<br />
other sports to healthcare. McLaren’s<br />
pre-tax profit rose from UK£12<br />
million to UK£19.7 million in 2011,<br />
with turnover rising from UK£202<br />
million to UK£239 million.<br />
BLACK BOOK <strong>2013</strong> l 27
The McLaren Group<br />
celebrates its 50th<br />
anniversary in <strong>2013</strong> and<br />
the Formula One team<br />
will want to prove that<br />
proliferating off-track<br />
distractions have not dulled<br />
its competitive edge<br />
<strong>2013</strong>: Business<br />
<strong>2013</strong> is a special year for McLaren<br />
Group, which will celebrate its 50th<br />
anniversary in September. Much has<br />
changed but its desire to win remains<br />
undimmed, even if there have been no<br />
championships since 2008 when Lewis<br />
Hamilton took the drivers’ title in the<br />
most dramatic fashion possible.<br />
The race team, McLaren Racing,<br />
remains its core activity of course,<br />
but there are several more branches<br />
to the McLaren tree these days – not<br />
least the production car division,<br />
McLaren Automotive. There is also<br />
McLaren Electronic Systems, which<br />
supplies every Formula One team<br />
plus Indycar and Nascar; McLaren<br />
Marketing; the Absolute Taste<br />
hospitality company; and McLaren<br />
Applied Technologies, which applies<br />
processes and technological solutions<br />
developed within McLaren and utilises<br />
them in a diverse range of arenas, from<br />
professional cycling to healthcare.<br />
The racing team is now part of a<br />
much larger whole but as <strong>2013</strong> begins<br />
McLaren is using its 50th anniversary<br />
to reflect a little on its racing heritage<br />
and achievements, notably its 182<br />
victories and 155 pole positions.<br />
Championships, in recent times, have<br />
been more difficult to come by.<br />
At the same time as team principal<br />
Martin Whitmarsh and managing<br />
director Jonathan Neale were plotting<br />
a competitive start to the <strong>2013</strong> season,<br />
they also had two other pressing<br />
issues to contend with. One was the<br />
departure of the team’s most senior<br />
technical manager, the highly rated<br />
Paddy Lowe. The Briton was courted<br />
over the winter by Mercedes, leading<br />
to widespread speculation that a move<br />
was imminent and was absent from<br />
McLaren’s <strong>2013</strong> launch so as not to<br />
cause a “distraction”. He left the team<br />
shortly afterwards, with Tim Goss<br />
promoted internally to take his place.<br />
The other key issue this year will<br />
be finding a replacement for longtime<br />
title sponsor Vodafone, which<br />
confirmed in March it would not<br />
be renewing its contract beyond the<br />
end of the season. The mobile phone<br />
giant’s deal with the team was first<br />
signed in 2007 and then renewed for<br />
a further three years in October 2010.<br />
Inevitably, there has been speculation<br />
28 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Team principal Martin<br />
Whitmarsh (centre)<br />
will lead a line-up with<br />
a distinctly different<br />
balance in <strong>2013</strong>, with<br />
Jenson Button (left) the<br />
clear number one and<br />
the gifted Sergio Perez<br />
(right) in hot pursuit<br />
that McLaren may go in search of<br />
Mexican money following the signing<br />
of Sergio Perez. Securing a new longterm<br />
title sponsorship deal is all the<br />
more pressing given McLaren finds<br />
itself in the new situation of having to<br />
pay for its engines from this season.<br />
Although Mercedes-Benz has been<br />
the team’s engine supplier since 1995,<br />
the German manufacturer’s decision to<br />
launch its own Formula One team in<br />
2010 resulted in it selling back its 40<br />
per cent stake in McLaren to long-time<br />
shareholders Ron Dennis and Mansour<br />
Ojjeh. The transaction having taken<br />
place, McLaren has reverted from<br />
effectively being Mercedes’ works team<br />
to a mere customer. The level of engine<br />
technology it will receive is unchanged<br />
and on a par with Mercedes’ own team;<br />
of more concern will the extent to<br />
which McLaren will be involved in the<br />
development of the all-new 2014 turbo<br />
from Mercedes which it will be using<br />
next year. Indeed, as the season neared<br />
speculation grew that Honda, enthused<br />
by the advent of a new turbo era, was<br />
close to a deal with the team and a<br />
return to the sport. In the meantime,<br />
McLaren is believed to be paying in the<br />
region of €15 million for its engine and<br />
KERS system in <strong>2013</strong>; it is a new cost,<br />
although the team will likely be saving<br />
a significant sum on its driver salary<br />
bill following Lewis Hamilton’s switch<br />
to Mercedes and the arrival of young<br />
charger Sergio Perez in his place.<br />
Mercedes and Vodafone aside,<br />
McLaren retains a formidable cluster<br />
of partners. Hilton signed a multiyear<br />
renewal in May last year, while<br />
McLaren Group’s September 2011’s tieup<br />
with GlaxoSmithKline, which will<br />
run until 2016, has gradually filtered<br />
down to the Formula One team with<br />
increased presence for GSK brands<br />
such as Maximuscle and Lucozade on<br />
the cars. The team’s deal with Mobil 1,<br />
through parent company ExxonMobil,<br />
also runs to the end of 2016.<br />
<strong>2013</strong>: Sporting<br />
For the first time since 2007 McLaren<br />
is beginning a Formula One season<br />
without Lewis Hamilton in one of its<br />
cars. The emotional strain of the split<br />
last year has quickly been replaced with<br />
a mood of optimism, but it is hard to<br />
argue that the new pairing of Jenson<br />
BLACK BOOK <strong>2013</strong> l 29
McLaren.com<br />
McLaren Celebrates<br />
a remarkable 50 years<br />
On 2nd September <strong>2013</strong> McLaren will celebrate a remarkable<br />
legacy. For 50 years McLaren has delivered groundbreaking leaps<br />
forward in racing technology, as well as breathtaking moments<br />
on the race track and the road. It all started with one man.<br />
He also created a company that would build on his passion,<br />
blending matchless racing know-how with outstanding sports<br />
car production. Producing road cars was core to Bruce’s dream.<br />
<br />
<br />
<br />
<br />
into production. It would be more than 20 years before McLaren<br />
would produce a road car, but the F1 would be worth the wait.<br />
1980s – New Technology<br />
<br />
McLaren, bringing with him cutting-edge composite<br />
<br />
One Man’s Vision<br />
As a teenager in New Zealand, Bruce McLaren dreamt of<br />
fusing his passion for competitive driving with his passion for<br />
engineering. He delivered on his dream in an extraordinary way,<br />
<br />
the youngest ever GP winner at that time. Four years later he<br />
set up Bruce McLaren Motor Racing, and by the mid-1960’s he<br />
was dominating the CanAm Series with partner Denny Hulme.<br />
<br />
<br />
groundbreaking and would go on to revolutionise the sport.<br />
<br />
season John Watson claimed victory at Silverstone, the teams<br />
<br />
<br />
<br />
followed McLaren’s visionary lead.<br />
Further technical innovations led to a series of race successes.<br />
<br />
<br />
<br />
16 races, a record that remains unbeaten.<br />
McLaren 12C and McLaren 12C Spider
McLaren P1<br />
1990s – Taking the Story to the Road<br />
<br />
a superlative sports car that would also be practical on an<br />
everyday basis. More revolutionary still, it would be a threeseater<br />
and have the highest power to weight ratio of any<br />
<br />
fastest naturally-aspirated production car in the world and the<br />
<br />
<br />
<br />
and went on to make history. Winning its debut at Le Mans in 1995,<br />
<br />
<br />
<br />
2003 – A Powerful Partnership<br />
<br />
<br />
<br />
comfort and luxury expected of a limousine. McLaren provided<br />
the engineering and production expertise, Mercedes the<br />
design architecture and engine.<br />
<br />
<br />
were derived from McLaren’s experience on the track and the<br />
Airbrake was pioneered on the F1. A number of special editions<br />
followed including the SLR Stirling Moss, but only 75 units were<br />
made, and all were snapped up by existing SLR owners.<br />
A New Chapter<br />
McLaren is now looking to the future with a new generation of<br />
revolutionary sports cars with the launch of McLaren Automotive.<br />
<br />
<br />
groundbreaking road cars were designed around the driver,<br />
<br />
<br />
during its competitive debut season.<br />
<br />
<br />
be the most technologically advanced and most dynamically<br />
accomplished supercar ever made. Judging by the response from<br />
Geneva, McLaren continues to make good on Bruce’s dream.
McLaren<br />
* Cash component to deal<br />
Sponsor Value Contract Start Contract End Status Sector<br />
Vodafone US$75m* January 2007 December <strong>2013</strong> Title Partner Telecoms<br />
Mobil 1 US$35m* January 2005 December 2015 Technology Partner Oil/Fuel<br />
SAP US$3m* May 2012 Undisclosed Technology Partner Technology<br />
Hilton HHonors US$3m* June 2005 Undisclosed Corporate Partner Hotel<br />
Johnnie Walker US$20m* July 2005 Undisclosed Corporate Partner Beverage<br />
AkzoNobel US$0.25m January 2009 Undisclosed Corporate Partner Automotive<br />
Aon US$1m* May 2010 Undisclosed Corporate Partner Financial<br />
X-Trade Brokers US$1m* March 2010 Undisclosed Corporate Partner Financial<br />
Tag Heuer US$2m* January 1985 Undisclosed Corporate Partner Watches<br />
Santander US$2m* January 2007 Undisclosed Corporate Partner Financial<br />
Hugo Boss US$3m* January 1982 Undisclosed Corporate Partner Fashion<br />
Steinmetz US$0.3m May 2005 Undisclosed Associate Partner Luxury<br />
Lucozade/Maximuscle US$15m* September 2011 December 2016 Official Supplier Beverage<br />
Sparco US$0.1m January 2012 Undisclosed Official Supplier Fashion<br />
FanVision US$0.1m May 2007 Undisclosed Official Supplier Technology<br />
Mazak US$0.1m May 2007 Undisclosed Official Supplier Technology<br />
Dassault Systemes US$0.1m January 2012 Undisclosed Official Supplier Technology<br />
Faro US$0.1m January 2011 Undisclosed Official Supplier Technology<br />
GS Yuasa US$0.25m January 2000 Undisclosed Official Supplier Technology<br />
Enkei US$0.5m January 2005 Undisclosed Official Supplier Automotive<br />
Akebono US$0.25m September 2007 Undisclosed Official Supplier Automotive<br />
Repucom US$0.1m January 2000 Undisclosed Official Supplier Other<br />
Lenovo US$0.5m January 2009 Undisclosed Official Supplier Technology<br />
Processia Solutions US$0.1m January 2011 Undisclosed Official Supplier Technology<br />
NGK US$0.1m January 2011 Undisclosed Official Supplier Automotive<br />
AkzoNobel-Sikkens US$0.25m January 2009 Undisclosed Official Supplier Automotive<br />
Binz Intelligent Eyewear US$0.1m January <strong>2013</strong> Undisclosed Official Supplier Technology<br />
Kenwood US$0.4m January 1991 Undisclosed Official Supplier Technology<br />
Other Income<br />
FOM TV US$77.5m January 2009 December 2012 TV monies -<br />
Total<br />
US$241.1m<br />
Button and Sergio Perez is stronger<br />
than the Button-Hamilton combo of<br />
2010 to 2012.<br />
Button is now the most experienced<br />
Grand Prix driver in the field, having<br />
competed in 228 races since his debut<br />
for Williams in 2000. In his fourth<br />
season with McLaren, he will assume<br />
the role of de facto team leader as<br />
Perez adjusts to life in a top-level team.<br />
The 2009 world champion appears<br />
ready for that challenge and nobody<br />
is expecting anything other than the<br />
Briton to be ahead when the points are<br />
totted up at the end of the season. A<br />
run at the championship should not be<br />
ruled out either.<br />
“I believe we’re extremely well<br />
prepared for another competitive<br />
season,” said team principal Martin<br />
Whitmarsh before the start of testing.<br />
“Jenson is driving better than ever –<br />
he’s the most experienced driver in<br />
Formula One, but he makes every<br />
32 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
The arrival of Perez<br />
(below) has yet to have<br />
an impact on McLaren’s<br />
commercial activities<br />
but with Vodafone<br />
electing not to renew<br />
its title sponsorship the<br />
Mexican’s backers may<br />
yet come into play<br />
TAG HEUER<br />
US $2m<br />
MOBIL 1<br />
US $35m<br />
VODAFONE<br />
US $75m<br />
HUGO BOSS<br />
US $3m<br />
ounce of that experience count; he’s<br />
peerless in his ability to read a race and<br />
one of the very fastest drivers out there.<br />
He’s a consummate professional, too,<br />
and will revel in working hard to drive<br />
this team through the year.”<br />
For Perez, who lacks nothing in<br />
confidence, the first part of <strong>2013</strong> will<br />
be a matter of ingratiating himself with<br />
his new team and learning its ways.<br />
The Mexican, undoubtedly quick but<br />
certainly erratic in his first two seasons<br />
of Formula One, has spent the winter<br />
undergoing an intense programme of<br />
physical training and simulator work<br />
at the McLaren Technology Centre.<br />
The team is leaving nothing to chance<br />
and has compared Perez’s arrival to that<br />
of Lewis Hamilton in 2007 in terms<br />
of the preparatory work undertaken.<br />
Perez, of course, has two years of solid<br />
race experience already under his belt<br />
with the Sauber team. McLaren should<br />
ensure he slots in nicely. How he goes<br />
will be one of the more fascinating<br />
elements of the first part of the season<br />
and while Button should have the<br />
upper hand in all areas, it would be no<br />
surprise at all, given McLaren’s record<br />
and Perez’s promise, if at some point<br />
this season he becomes his country’s<br />
first Grand Prix winner since Pedro<br />
Rodriguez in 1970.<br />
The car that Button and Perez<br />
will drive this year, the MP4-28, was<br />
revealed to the world at a special<br />
ceremony marking McLaren’s<br />
golden anniversary year at the team’s<br />
headquarters in late January. It is an<br />
ambitious revision of the race-winning<br />
car of 2012 which left Whitmarsh<br />
exuding positivity. “This car is already<br />
quicker than the car we finished last<br />
year with,” he said at the launch,<br />
before testing began in Spain in early<br />
February. “At the moment we’re in a<br />
very encouraging development stage. In<br />
all that we are looking at – downforce<br />
and other parameters that affect<br />
performance – this car is responding<br />
very well.” The car was quickest on its<br />
first day of testing; a promising start<br />
to a year in which McLaren needs to<br />
deliver a championship.<br />
BLACK BOOK <strong>2013</strong> l 33
Lotus<br />
Lotus established itself as<br />
the best of the midfield<br />
pack in 2012 and will have<br />
its sights set on challenging<br />
Red Bull, Ferrari and<br />
McLaren for more wins<br />
in <strong>2013</strong><br />
2012 in review: a competitive fourth<br />
Lotus, once Benetton and most<br />
recently Renault, returned to winning<br />
ways in 2012. As Kimi Raikkonen,<br />
whose return to the sport was one of<br />
the season’s highlights, crossed the<br />
line under the lights to win the Abu<br />
Dhabi Grand Prix some turned to<br />
the history books to see when the last<br />
time a car called a Lotus had won a<br />
race, but a more accurate historical<br />
note was that it was the first victory<br />
for the Enstone-headquartered outfit<br />
since Fernando Alonso won the 2008<br />
Japanese Grand Prix.<br />
The Lotus name is just that and<br />
no more, having been revived and<br />
then battled over in tiresome fashion<br />
throughout 2011 – Malaysian-owned<br />
Group Lotus eventually prevailing<br />
in the British courts over Malaysian<br />
entrepreneur Tony Fernandes’ Team<br />
Lotus. Group Lotus, which had<br />
aggressively announced its intentions<br />
by signing a title sponsorship deal<br />
believed to be worth as much as<br />
US$20 million annually until 2017<br />
with an option to buy a majority<br />
stake of the team at the end of 2010,<br />
terminated its deal early in 2012.<br />
That led to the unusual situation of<br />
the team – renamed Lotus for 2012<br />
following the conclusion of the court<br />
battle and Renault relinquishing the<br />
last of its share in the team – retaining<br />
the Lotus name, around which they<br />
are building a new image despite not<br />
receiving any income. It is an unusual<br />
scenario, certainly. Suggestions that<br />
Genii Capital, the team’s owner, was<br />
looking to acquire Group Lotus had<br />
come to nought as the year ended.<br />
Commercial savvy<br />
Back in Enstone, deep in the heart of<br />
Oxfordshire, the team made the most<br />
of what might be described as a slight<br />
identity crisis. In terms of marketing<br />
and commercial activities, few teams<br />
performed more adeptly in 2012.<br />
Lotus has built a significant voice for<br />
itself on Twitter, while in sponsorship<br />
34 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
terms there were new partnerships<br />
with consumer brands at either end of<br />
the year. Unilever arrived in a US$15<br />
million deal before the start of the<br />
season, through which it promoted its<br />
Rexona deodorant brand and antidandruff<br />
shampoo Clear. In November<br />
the team announced that Coca-Cola’s<br />
energy drinks brand Burn would be a<br />
sponsor from <strong>2013</strong>.<br />
The deals were a testament to a<br />
savvy commercial team, led by chief<br />
commercial officer Steve Curnow and<br />
commercial manager Phil Kennard,<br />
as were a couple of novel single-race<br />
agreements. Lotus signed a deal with<br />
the makers of the Angry Birds game<br />
in Monaco and secured a promotional<br />
tie-up with the Warner Bros studio<br />
at Silverstone ahead of the release of<br />
Batman movie The Dark Knight Rises.<br />
There was also a three-year<br />
agreement, signed in May, with<br />
business technology solutions provider<br />
Avanade and, in March, a multi-year<br />
agreement with Microsoft Dynamics –<br />
the first time any Microsoft brand has<br />
been active in the sport.<br />
Genii, led by technology<br />
entrepreneur Gerard Lopez, has<br />
insisted it will supply funding in the<br />
event of any sponsorship shortfall, but<br />
the big prize remains a replacement<br />
title sponsor for Lotus. Wild<br />
speculation that the team was up for<br />
sale in October was quickly snuffed<br />
out, although Lopez appears prepared<br />
to sell a minority stake or two should<br />
the right investor emerge.<br />
Raikkonen’s winning return<br />
On the track, a single victory and ten<br />
podiums made it a successful season<br />
for the team and was more than good<br />
enough for fourth place in the world<br />
championship. Perhaps it should have<br />
done better, given the considerable<br />
attributes of the R20 chassis. Time<br />
after time, however, particularly early<br />
in the season, Lotus would appear<br />
to be the pacesetters throughout<br />
practice, only to fall away as the race<br />
weekend progressed. Despite a very<br />
accomplished return to the sport,<br />
Raikkonen, too, was perhaps guilty<br />
of a touch of conservatism when he<br />
elected not to try a move on Sebastian<br />
Vettel when in prime position to take<br />
the lead of the Bahrain Grand Prix in<br />
April. Later in the season, once the<br />
ring-rustiness had passed, he had no<br />
such qualms. His drive to victory in<br />
Abu Dhabi, although abetted by Lewis<br />
Hamilton’s retirement, was superb; his<br />
overtaking move on Nico Hulkenberg<br />
in Austin, a sweeping pass around the<br />
outside, was even better and probably<br />
the best of the year.<br />
After two unsuccessful years in<br />
the World Rally Championship<br />
Raikkonen’s return to Formula One<br />
was widely welcomed. Not one for a<br />
sentence when a single word will do,<br />
at least in front of the cameras, and<br />
something of a throwback to another<br />
age, he was expertly handled by Lotus<br />
who created an atmosphere that<br />
allowed him to thrive. The fabulously<br />
gifted Finn was one of the stars of<br />
2012, eventually finishing third in the<br />
world championship.<br />
For Romain Grosjean, however, 2012<br />
was a testing first full year in Formula<br />
One – although, in fact, it wasn’t quite<br />
the full season for the Frenchman as he<br />
was banned from the Italian Grand Prix<br />
for causing a huge accident at the start<br />
in Belgium, which skittled out several<br />
cars and nearly took Fernando Alonso’s<br />
head off. It was a just punishment and<br />
one of a sizeable handful of incidents<br />
during races which marred his year<br />
and took the sheen off some genuinely<br />
impressive performances early on. He<br />
took three podiums, notably second<br />
place in Canada, and ten points finishes<br />
from his 19 races. He also virtually<br />
matched Raikkonen over the season<br />
in the qualifying head-to-head charts,<br />
finishing 9-10. Grosjean, the 2011 GP2<br />
champion, is undoubtedly quick but his<br />
propensity for becoming embroiled in<br />
incidents lost the team a huge chunk of<br />
points over the season and the resulting<br />
wave of criticism certainly dented his<br />
confidence. He will return, however,<br />
with Lotus confirming in December<br />
that the Frenchman – backed by French<br />
oil company Total, who have a multimillion<br />
dollar agreement with the team<br />
– was to stay on for <strong>2013</strong>. On balance<br />
that was the right decision, although a<br />
significant improvement is required.<br />
Belgian Jerome D’Ambrosio, who<br />
raced for Virgin Racing in 2011,<br />
was promoted from reserve driver to<br />
replace Grosjean at the Italian Grand<br />
Prix. He qualified 16th and raced,<br />
without drama, to 13th.<br />
BLACK BOOK <strong>2013</strong> l 35
Romain Grosjean brings<br />
significant financial backing<br />
to Lotus through French oil<br />
company Total but after an<br />
erratic season the team will<br />
hope he can provide more<br />
mature support to star<br />
driver Kimi Raikkonen this<br />
time around<br />
<strong>2013</strong>: Business<br />
After the positivity of <strong>2013</strong>, Lotus<br />
is eyeing another step forward<br />
in competitiveness this year and<br />
a top-three finish in the world<br />
championship. That will require them<br />
to break the Red Bull-McLaren-Ferrari<br />
stronghold, but it is an admirable,<br />
if ambitious, pre-season target. The<br />
team’s progression in all areas over the<br />
past 18 months or so has certainly<br />
been impressive. “Obviously the<br />
results are very important and they<br />
are a key part because the target of<br />
a Formula One team is to be a top<br />
team,” team principal Eric Boullier<br />
told SportsPro in February.<br />
“On top of that, we work a lot on<br />
making this positive image around<br />
the team – being a little bit different<br />
than the other teams, building a lot<br />
with social media to clearly have<br />
an interaction with the fans. That’s<br />
something, obviously, which<br />
definitely helps us today. We know<br />
that with any commercial leads or<br />
discussions that are opened we are<br />
seriously considered and one of the<br />
serious contenders if there is any<br />
positive outcome.”<br />
Key partnerships have been secured<br />
over the past year with Microsoft<br />
Dynamics, Unilever and Burn,<br />
Coca-Cola’s energy drink, while the<br />
team has also struck smaller supply<br />
deals over the winter with Henri<br />
Lloyd and Alpinestars. For Boullier,<br />
it is the result of a new companywide<br />
commercial focus, which<br />
reflects Lotus’ change of status from<br />
a manufacturer-owned team to a<br />
privately owned outfit. “We had to<br />
tune the culture a little bit,” he said.<br />
“We had to say, ‘Everybody in every<br />
department, you have contact with<br />
suppliers, you have contact with<br />
different companies working for the<br />
team.’ Even if it’s a niche you can<br />
always find a contact where you can<br />
develop commercial relationships<br />
whereas before, when the team was a<br />
car manufacturer, you have to work on<br />
doing your job – you don’t really care<br />
about the commercial side.”<br />
The team is still actively pursuing<br />
a title sponsor to replace Lotus. The<br />
Lotus name is used under licence from<br />
the car manufacturer, which up until<br />
last year was also the title sponsor.<br />
“We found that it’s a great brand,” said<br />
36 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Technical director<br />
James Allison wants<br />
<strong>2013</strong>’s E21 to be an<br />
improvement “in all<br />
areas” , and wants the<br />
advances the team<br />
makes “to be greater<br />
than those made by<br />
the opposition”<br />
Boullier. “It’s a very serious brand and<br />
it’s very well associated with Formula<br />
One, so that’s why we are all happy<br />
with the situation now.<br />
He added: “To build a title sponsor<br />
deal is very complex and takes a long<br />
time. We are pursuing sponsors and<br />
a title [sponsor] is one of them.<br />
We have also different levels of<br />
endorsement and any of them are<br />
important these days.”<br />
Lotus has positioned itself as a<br />
Formula One challenger brand in some<br />
style and even if it has aspirations to<br />
break into the top three as early as<br />
BLACK BOOK <strong>2013</strong> l 37
Lotus<br />
* Cash component to deal<br />
Sponsor Total value Contract Start Contract End Status Sector<br />
Genii Capital US$40m January 2010 Ongoing Official Partner Other<br />
Renault US$6m* January 2001 Ongoing Official Partner Car manufacturer<br />
Total US$28m* January 2011 Ongoing Official Partner Oil/Fuel<br />
Rexona US$7.5m* February 2012 December 2012 Official Partner Consumer<br />
Clear US$7.5m* February 2012 December 2012 Official Partner Consumer<br />
Burn US$3m* January <strong>2013</strong> Undisclosed Official Partner Beverages<br />
Microsoft Dynamics US$2m* March 2012 December 2014 Official Partner Technology<br />
Japan Rags US$1.5m November 2010 Undisclosed Official Partner Fashion<br />
Avanade US$1.5m May 2012 December 2014 Official Partner Technology<br />
Agt US$0.2m April 2012 Undisclosed Official Partner Other<br />
Auden McKenzie US$0.2m January <strong>2013</strong> Undisclosed Official Business Partner Technology<br />
Optimal Payments US$0.2m May 2012 Undisclosed Official Business Partner Technology<br />
CNBC US$0.2m January <strong>2013</strong> Undisclosed Official Business Partner Media<br />
Alpinestars US$0.2m January <strong>2013</strong> Undisclosed Technical Partner Fashion<br />
CD-Adapco US$0.25m January 2001 Undisclosed Technical Partner Technology<br />
Digipen US$0.1m January <strong>2013</strong> Undisclosed Technical Partner Technology<br />
GF AgieCharmilles US$0.7m January 2000 Undisclosed Technical Partner Technology<br />
iRise US$0.1m March 2012 Undisclosed Technical Partner Technology<br />
Magneti Marelli US$0.2m January 2012 Undisclosed Technical Partner Automotive<br />
NetApp US$0.4m January 2003 Undisclosed Technical Partner Technology<br />
Oz Racing US$0.2m January 2009 Undisclosed Technical Partner Automotive<br />
Processia Solutions US$0.5m September 2004 December 2015 Technical Partner Technology<br />
Symantec US$0.3m January 2003 Undisclosed Technical Partner Technology<br />
Siemens US$0.1m January <strong>2013</strong> Undisclosed Technical Partner Technology<br />
3D Solutions US$0.2m January 2003 Undisclosed Technical Partner Technology<br />
Other Income<br />
FOM TV US$67m January 2009 December 2012 TV monies -<br />
Total<br />
US$168.05m<br />
this year, Boullier hopes the team’s<br />
atmosphere will not change. “Definitely<br />
the target is to get more resources, more<br />
money, more budget,” he said, “but<br />
my target is to keep the spirit and the<br />
culture we have here.”<br />
Not for the first time, a very<br />
positive story is emerging at Enstone,<br />
from where championship-winning<br />
Benetton and Renault cars were<br />
created. Lotus could well be the<br />
breakthrough team of <strong>2013</strong>.<br />
<strong>2013</strong>: Sporting<br />
There are high hopes for the Lotus E21,<br />
which is an evolved version of last year’s<br />
race-winning E20. In part, that is a<br />
result of stability of regulations but it is<br />
also due to the inherent strengths of the<br />
2012 car. The E21 had a positive debut<br />
in testing early in February, raising<br />
hopes that it may be a car capable of<br />
helping the team move into Formula<br />
One’s top three.<br />
“Some parts of the new car are a<br />
ground-up redesign and in other areas<br />
we have further optimised the best bits<br />
of the design philosophy we’ve adopted<br />
for several seasons,” said technical<br />
director James Allison, a veteran of the<br />
team, of a car which was the first <strong>2013</strong><br />
machine revealed to the world in late<br />
January. “The front and rear suspension<br />
layouts are substantially revised to<br />
try and give us better aerodynamic<br />
opportunities. The front wing is a<br />
38 l BLACK BOOK <strong>2013</strong>
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Though it will start<br />
the season without a<br />
title sponsor the Lotus<br />
commercial team has<br />
proved effective in its<br />
ability to attract partners,<br />
particularly consumer<br />
brands, something team<br />
principal Eric Boullier<br />
(below) attributes to the<br />
“positive image around<br />
the team”<br />
TOTAL<br />
US $28m<br />
GENII<br />
US $40m<br />
REXONA<br />
US $7.5m<br />
BURN<br />
US $3m<br />
continuation of the concepts we have<br />
worked on since the 2009 rules were<br />
published.” The team has also worked<br />
hard to maximise the benefits of the<br />
Drag Reduction System (DRS), a key<br />
asset during races.<br />
“We never set out to build the<br />
second-fastest or third-fastest car,”<br />
Allison continued. “We set out to<br />
build the fastest and most effective<br />
car that we possibly can. We want to<br />
improve our car in all areas from last<br />
year’s and we want the improvements<br />
we make to be greater than those made<br />
by the opposition.”<br />
Lotus has retained both its 2012<br />
drivers. Kimi Raikkonen, the 2007<br />
world champion, returns for a second<br />
season after a terrific comeback year<br />
in which he underlined his status as<br />
one of the best – and most popular –<br />
drivers on the grid. Boullier, speaking<br />
to SportsPro in February, believes that<br />
Lotus’ status as a privately run team<br />
has allowed Raikkonen to be himself<br />
in a way that he wasn’t when he was<br />
contracted to McLaren and Ferrari,<br />
teams with a heavy manufacturer<br />
presence and, perhaps, a more<br />
corporate attitude. In a marketing<br />
sense, the team has used him brilliantly.<br />
The Finn, now 33, still has the<br />
consistency, speed and mentality to<br />
mount a world championship challenge<br />
if the car is up to it; nobody would be<br />
surprised if he won races in <strong>2013</strong>.<br />
For Romain Grosjean, <strong>2013</strong> is a<br />
critical season. Undoubtedly quick,<br />
as his performances in the first part<br />
of last year showed, his campaign was<br />
blighted by incident and widespread<br />
criticism. He ended the year looking<br />
like a man with the world on his<br />
shoulders, a total contrast from the<br />
smiling figure who had stood on<br />
podiums months earlier. Lotus, helped<br />
along by oil supplier Total, has given<br />
him another shot but the early part of<br />
the season is vitally important. A good<br />
start should see the memories of 2012<br />
and the perception of him as a crashprone<br />
driver evaporate; a bad start,<br />
however, might be another damaging<br />
dent to his confidence. Grosjean is<br />
talented but in <strong>2013</strong> he has to prove<br />
he has the mental toughness to be a<br />
top-line Grand Prix driver. He could<br />
learn a trick or two from the way<br />
Raikkonen shrugs off criticism and<br />
praise in almost equal measure.<br />
40 l BLACK BOOK <strong>2013</strong>
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Mercedes<br />
It was the end of a slightly<br />
disappointing era in 2012<br />
as Michael Schumacher’s<br />
(left) three-year Formula<br />
One return with Mercedes<br />
came to a close without a<br />
single Grand Prix win<br />
2012 in review:<br />
the disappointing breakthrough year<br />
2012 was both a breakthrough year<br />
and a hugely disappointing one for<br />
Mercedes. At April’s Chinese Grand<br />
Prix, Nico Rosberg took the team’s first<br />
victory since the German manufacturer<br />
bought and rebranded it before the<br />
start of 2010. It was a dominant drive<br />
and followed a front-row lockout by<br />
Rosberg and Michael Schumacher<br />
the previous day, underlining that at<br />
the start of the season, at least, the<br />
Mercedes were amongst the fastest cars<br />
on the grid. It was, however, to prove<br />
the high point.<br />
In the second half of the year,<br />
Mercedes’ form trailed off badly. It was<br />
an abject finish to the campaign for a<br />
manufacturer-backed team boasting<br />
all kinds of technical expertise and<br />
experience. In the six races between<br />
Singapore and the end of the season,<br />
Mercedes took just one seventh place.<br />
The podium finishes achieved by<br />
Rosberg in Monaco and Schumacher<br />
in Valencia seemed a world away. The<br />
team ultimately slipped to fifth in the<br />
constructors’ world championship<br />
and had Sauber closing in fast as the<br />
season ended.<br />
“We had a competitive car in the<br />
first third of the season, as Nico and<br />
Michael demonstrated on several<br />
occasions,” said Norbert Haug who,<br />
until December at least, was Mercedes’<br />
head of motorsport. “However, we<br />
especially needed to catch up in<br />
terms of aerodynamics and to achieve<br />
our targets, we made changes in<br />
technology and personnel in order to<br />
be competitive from the start to the<br />
finish of next season.”<br />
Haug’s departure from a role he<br />
had made his own over 22 years was<br />
something of a surprise, although<br />
the appointment of three-time world<br />
champion Niki Lauda as chairman of<br />
the team a few weeks earlier may have<br />
offered a clue that it was poised for<br />
management changes. It seems Haug<br />
has carried the can for three years of<br />
underperformance; at board level,<br />
Mercedes evidently expected to be<br />
more successful rather sooner than it<br />
has turned out.<br />
Quite how Lauda, a man not<br />
known for keeping his opinions<br />
to himself, gels with Brawn, with<br />
whom Mercedes has entrusted the<br />
day-to-day running of the team at<br />
its base in the Northamptonshire<br />
town of Brackley, remains to be seen.<br />
Speaking in November, however,<br />
Brawn played down the changes. “Niki<br />
is non-executive chairman,” he said,<br />
“chairman of our board. We meet our<br />
board several times a year, to discuss<br />
the major issues. I think Niki is also<br />
going to add a lot of racing experience<br />
to the board. The board meetings will<br />
have a slightly different complexion<br />
in the future. And Niki’s helping with<br />
some of the bigger strategic issues,<br />
such as the new commercial agreement<br />
with Bernie [Ecclestone]; obviously<br />
Niki had some involvement with<br />
persuading Lewis [Hamilton] to join<br />
us – so those sorts of issues, but not<br />
involved with the day-to-day running<br />
of the team.”<br />
Statement of intent<br />
Signing Lewis Hamilton, who joins in<br />
<strong>2013</strong> for the first year of a three-season<br />
agreement, was a major statement of<br />
intent from Mercedes. The team is also<br />
looking ahead to the major package<br />
42 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Nico Rosberg confirmed<br />
his arrival as a serious<br />
player in the sport with<br />
a first win for Mercedes<br />
at the Chinese Grand<br />
Prix in April but the<br />
team failed to kick on<br />
from there<br />
of engine regulation changes in 2014<br />
with some relish; as a manufacturer<br />
which builds its own chassis and<br />
engine, that rare thing in modern<br />
Formula One, there is a belief that it<br />
may be very well placed to capitalise<br />
and steal a march on the opposition.<br />
It is said to be one of the reasons<br />
Hamilton has gambled on his highprofile<br />
move.<br />
Hamilton, however, will be nervous<br />
about the way Mercedes failed to<br />
develop its package after a promising<br />
start in 2012. Its early pace was in no<br />
small part due to its innovative double<br />
DRS system, which made the car a<br />
relative rocket-ship down the straights.<br />
In Monaco, too, it was perhaps the<br />
package to beat, although Rosberg<br />
could only finish second behind Mark<br />
Webber. From then on, however, it<br />
was more of a struggle. The car seemed<br />
unduly hard on its tyres and in a<br />
season where tyre management was<br />
very nearly the be-all and end-all, that<br />
proved a major hindrance.<br />
Commercially, the team is well<br />
placed despite initially hesitating<br />
over its future in the sport when it<br />
emerged it would not be receiving<br />
the same financial deal offered by<br />
Bernie Ecclestone to the likes of<br />
Ferrari, McLaren and Red Bull Racing.<br />
Ultimately, terms were agreed and<br />
the team is contractually bound to<br />
Formula One until 2020.<br />
Commercial gains<br />
There was a subtle change to the team’s<br />
name in 2012, with AMG, Mercedes’<br />
high-performance brand, added to<br />
make the official title ‘Mercedes AMG<br />
Petronas Formula 1 Team’. Malaysian<br />
oil giant Petronas is a long-term and<br />
committed title sponsor, as part of a<br />
wider tie-up with Mercedes, while the<br />
team snared several new deals during<br />
the course of the year. Starwood Hotels<br />
came aboard in May and watchmaker<br />
IWC Shaffhausen signed an agreement<br />
which comes into effect in <strong>2013</strong>.<br />
Before the 2012 championship began,<br />
Mercedes renewed its agreement<br />
with MIG Bank and signed jeweller<br />
Thomas Sabo and Spanish solar energy<br />
company Isofoton.<br />
There was also a change in the<br />
ownership balance in November, with<br />
Mercedes parent Daimler taking 100<br />
per cent control in the team, which<br />
operates as Mercedes Grand Prix Ltd,<br />
after acquiring the 40 per cent stake<br />
held by Abu Dhabi investment firm<br />
Aabar. The 40 per cent stake had been<br />
wrapped up in a wider agreement<br />
which saw Aabar also acquire nine<br />
per cent of Daimler outright in 2011.<br />
Aabar’s disinvestment should have no<br />
day-to-day repercussions for the team.<br />
Hamilton’s signing for <strong>2013</strong> meant<br />
the end of the road – and this time<br />
for good – for Michael Schumacher,<br />
the man whose return with Mercedes<br />
in 2010 came with such high hopes<br />
but ultimately never quite delivered.<br />
Schumacher finally got back on the<br />
podium in 2012 and still showed<br />
touches of class here and there but, as<br />
in 2010 and 2011, there were incidents<br />
aplenty. His comeback in microcosm<br />
was taking pole position with a<br />
brilliant lap in Monte Carlo, only to<br />
be demoted five places on the grid for<br />
having driven into the back of Bruno<br />
Senna’s Williams at the previous race<br />
in Spain. At 43, Schumacher retires a<br />
more popular man than he was first<br />
time round in 2006. Success, though,<br />
eluded both him and the team.<br />
BLACK BOOK <strong>2013</strong> l 43
Lewis Hamilton (centre)<br />
will be expected to<br />
add stardust and world<br />
championship quality to<br />
Mercedes after taking the<br />
difficult decision to leave<br />
McLaren, the only team he<br />
has ever known in the sport<br />
<strong>2013</strong>: Business<br />
It has been quite a winter for<br />
Mercedes with even the arrival of<br />
Lewis Hamilton overshadowed<br />
somewhat by dramatic management<br />
changes to the team, driven by its<br />
disappointing performance in 2012.<br />
The departure of Norbert Haug and<br />
arrival, in a non-executive chairman<br />
capacity, of Niki Lauda had seemed<br />
change enough, but in mid-January<br />
Mercedes announced that it had<br />
appointed Toto Wolff as its new<br />
executive director of motorsport,<br />
a wide-ranging role covering the<br />
Formula One team and the rest of<br />
the German manufacturer’s racing<br />
activities around the world.<br />
Wolff, who had been an executive<br />
director at Williams, now finds<br />
himself in the highly unusual position<br />
of holding a significant portion of<br />
shares in two Formula One teams,<br />
having been handed a 30 per cent<br />
stake in Mercedes Benz Grand Prix<br />
Ltd, the UK company through which<br />
the Mercedes team trades, to go with<br />
his existing shareholding of around 15<br />
per cent in Williams. Having started<br />
the winter as the man most likely to<br />
replace Sir Frank Williams at the head<br />
of one team, the Austrian ended it in<br />
charge of one of the entire motorsport<br />
programme of one of the world’s<br />
leading car manufacturers.<br />
At the same time, Mercedes<br />
announced Lauda had acquired a 10<br />
per cent stake, at a stroke creating<br />
an Austrian powerbase in the team’s<br />
management. It left Ross Brawn, as<br />
team principal, a touch isolated as<br />
the third member of the management<br />
set-up and speculation about the<br />
Briton’s future was hardly dampened<br />
when reports in January emerged<br />
that Mercedes had made a move to<br />
hire McLaren’s technical director<br />
Paddy Lowe in a senior role. Lowe<br />
has since left the British team and<br />
Brawn’s current unwillingness to<br />
commit long-term to Mercedes –<br />
intriguing in itself – has prompted<br />
speculation that it is only a matter<br />
44 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Seemingly poised<br />
to take the reins<br />
at Williams, Toto<br />
Wolff was a surprise<br />
appointment as<br />
executive director of<br />
motorsport at Mercedes<br />
in January<br />
of time before Lowe joins the host of<br />
technical managers already ensconced<br />
at Mercedes.<br />
Brawn, for now at least, retains<br />
day-to-day control at the team’s UK<br />
headquarters in Brackley but his<br />
relationship with Wolff and the usually<br />
outspoken Lauda will be analysed<br />
closely throughout the year. The<br />
changes instigated by the Mercedes<br />
board, led by Daimler chairman<br />
Dr Dieter Zetsche, are nothing if<br />
not bold. Much now rests on the<br />
performance of the team’s new W04<br />
chassis. If it is not up to scratch, there<br />
could be further executive fireworks.<br />
Some of the senior personnel may<br />
have changed but commercially<br />
Mercedes has been very successful<br />
since its return to the grid with its<br />
own team in 2010. The long-term title<br />
sponsorship deal with Petronas is now<br />
into its fourth season – the Malaysian<br />
brand has chosen to highlight its<br />
‘reimagining energy’ corporate<br />
message on the cars this season – while<br />
a new US$36 million, three-year deal<br />
with BlackBerry, a new sponsor for<br />
Formula One, was confirmed with the<br />
launch of the <strong>2013</strong> car.<br />
The team has worked hard to use its<br />
heritage and Mercedes’ global brand<br />
values to maximise its returns through<br />
sponsorship, even during a fallow<br />
period in terms of results. Hamilton’s<br />
global appeal as one of Formula One’s<br />
most famous faces will surely help its<br />
cause this year, too.<br />
<strong>2013</strong>: Sporting<br />
Beginning what has been called the<br />
start of a “second era” for the team,<br />
Mercedes is under no illusions about<br />
the improvement required with its<br />
W04 car, which was revealed to the<br />
world at the start of February, if<br />
they want to challenge for regular<br />
race wins and become a genuine<br />
contender in <strong>2013</strong>. “The restructuring<br />
we undertook at the team over the<br />
past 18 months is now growing<br />
in maturity and this is reflected in<br />
the F1 W04, which is a clear<br />
BLACK BOOK <strong>2013</strong> l 45
Mercedes<br />
* Cash component to deal<br />
Sponsor Total value Contract Start Contract End Status Sector<br />
Mercedes-Benz US$70m November 2009 Ongoing Owner Car manufacturer<br />
Petronas US$42m* January 2010 December 2012 Title Partner Oil/Fuel<br />
MIG Bank US$4m* April 2009 December 2012 Team Partner Financial<br />
BlackBerry US$12m* February <strong>2013</strong> December 2015 Team Partner Technology<br />
Allianz US$1m* February 2010 Undisclosed Team Partner Technology<br />
IWC Shaffhausen US$1m* May 2012 December 2014 Team Partner Watch<br />
Monster Energy US$1.6m* March 2010 Undisclosed Team Partner Beverages<br />
Puma US$1m* January 2012 Undisclosed Team Partner Fashion<br />
Starwood Hotels US$1.5m* May 2012 Undisclosed Team Partner Hotel<br />
Isofoton US$0.3m* February 2012 December 2012 Team Partner Technology<br />
Endless Advance US$0.1m January 2010 Undisclosed Team Supplier Automotive<br />
Lincoln Electric US$0.2m January 2010 Undisclosed Team Supplier Technology<br />
Sandvik Coromant US$0.2m January 2012 Undisclosed Team Supplier Technology<br />
STL Communications US$0.15m May 2010 Undisclosed Team Supplier Technology<br />
Solace Systems<br />
US$0.1m<br />
Other Income<br />
FOM TV US$64m March 2009 December 2012 TV monies -<br />
Total<br />
US$199.15m<br />
MIG BANK<br />
US $4m<br />
MERCEDES-BENZ<br />
US $70m<br />
PETRONAS<br />
US $42m<br />
BLACKBERRY<br />
US $12m<br />
step forward in design and detail<br />
sophistication over its predecessor,”<br />
was Brawn’s assessment on launch<br />
day. He has targeted a “step change”<br />
in performance over 2012, although<br />
the early teething troubles that limited<br />
running severely on the first two days<br />
of pre-season testing hardly bode well.<br />
The team did, however, recover well<br />
and the car ran faultlessly on the final<br />
two days in Jerez.<br />
The arrival of Hamilton has<br />
added new impetus already and in<br />
the Briton the team has its most<br />
reliable benchmark yet. Hamilton<br />
is a proven Grand Prix winner and<br />
world champion so there will be no<br />
doubt where the blame lies should the<br />
car not perform – there will be none<br />
of the doubts which have lingered<br />
for the past three years about Nico<br />
Rosberg’s ultimate pace or that of a<br />
fortysomething Michael Schumacher.<br />
How Hamilton integrates himself<br />
into the team – and how the team<br />
reacts to Hamilton – will be one of<br />
the most fascinating narratives of the<br />
48 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Mercedes will be hoping<br />
that its W04 can deliver<br />
on a more consistent<br />
basis than its 2012 car,<br />
whose straight-line<br />
speed was undermined<br />
by a tendency to chew<br />
through Pirelli tyres<br />
season. The early signs appear positive:<br />
Hamilton has already declared himself<br />
“happier” with Mercedes than at<br />
McLaren, while the team has laid out<br />
the welcome mat in some style for<br />
its new charge, despite the upheaval<br />
in senior personnel. The 28-year-old<br />
has also installed Tom Shine as his<br />
new day-to-day manager ahead of<br />
the new season. Shine, a veteran of<br />
Simon Fuller’s XIX agency which<br />
manages Hamilton’s affairs, replaced<br />
Didier Coton in what will be, as ever,<br />
an important role marshalling one of<br />
Formula One’s superstars.<br />
Nico Rosberg, meanwhile, enters<br />
his first Formula One season as a<br />
Grand Prix winner almost completely<br />
overshadowed by his teammate. It<br />
is a role the 27-year-old has become<br />
accustomed to, having shared the<br />
Mercedes garage with Schumacher<br />
since 2010. Few expect Rosberg to<br />
match Hamilton over the course of the<br />
season, but he will be heartened by the<br />
knowledge that many said the same<br />
about Jenson Button when he joined<br />
Hamilton at McLaren and about<br />
Rosberg himself when Schumacher<br />
arrived at Mercedes. Expect the<br />
German, approaching his ninth<br />
season of Formula One and a veteran<br />
of 128 races, to do his usual, good,<br />
professional job. The higher highs,<br />
however, are likely to be provided by<br />
the new man alongside him.<br />
BLACK BOOK <strong>2013</strong> l 49
Sauber<br />
The high performance of<br />
the C31 meant 2012 was<br />
an excellent season for<br />
Sauber’s outgoing driving<br />
team of Sergio Perez and<br />
Kamui Kobayashi, with<br />
the former on the podium<br />
three times and the latter<br />
managing third in his home<br />
Grand Prix at Suzuka<br />
2012 in review: the surprise package<br />
By its usual standards Sauber enjoyed<br />
a tremendous season, but by the<br />
standards of its 2012 car the suspicion<br />
by the end of the year was that the<br />
team might have even done a touch<br />
better than its eventual sixth place<br />
and four podiums. The C31, crafted<br />
by James Key, was an excellent effort;<br />
kind on its tyres and a good base from<br />
which to work.<br />
Indeed, the team should have won at<br />
least one Grand Prix: in Malaysia Sergio<br />
Perez, the talented Mexican hotshot,<br />
was chasing down Fernando Alonso’s<br />
Ferrari before sliding off the road and<br />
being forced to settle for second place,<br />
while in Belgium Kamui Kobayashi and<br />
Perez qualified 2nd and 4th and were<br />
tipped to be right in contention until<br />
they were blamelessly involved in the<br />
multi-car first-corner accident triggered<br />
by Romain Grosjean.<br />
It would be churlish in the extreme<br />
to criticise Sauber, a well-run team<br />
which always operates within its means,<br />
after such a competitive season – after<br />
all, it finished sixth in the constructors’<br />
championship, almost within spitting<br />
distance of Mercedes, and scored 82<br />
more points than in 2011. Yet were it<br />
not for the team’s innate conservatism,<br />
the win in Malaysia was certainly on<br />
the cards: it said everything that just as<br />
Perez was closing in on Alonso in the<br />
dying laps he was given a radio message<br />
reminding him of the importance to<br />
the collective of the 18 points he would<br />
get for second place.<br />
Perez followed up second place in<br />
Malaysia with a third place in Canada<br />
and second place, behind Lewis<br />
Hamilton, in Italy. There was also an<br />
emotional home podium for Kamui<br />
Kobayashi in Japan.<br />
Kaltenborn promoted<br />
In the midst of such an impressive<br />
season, Peter Sauber – a man who<br />
was always reluctant to return to the<br />
front line but felt obliged to save the<br />
team he created when BMW withdrew<br />
from the sport at the end of 2009 –<br />
relinquished the team principal’s role<br />
to Monisha Kaltenborn in October.<br />
Kaltenborn, who has been deeply<br />
involved in Sauber’s legal affairs for<br />
many years and was most recently<br />
its chief executive, is the sport’s first<br />
female team principal. “We decided a<br />
long time ago that Monisha would take<br />
over from me, but we left the timing<br />
open,” Sauber said. “Now is a good<br />
time for both of us, so this is the right<br />
moment to pass on the baton.<br />
“I’m in no doubt that Monisha<br />
has all the necessary skills to be an<br />
outstanding team principal, and I’m<br />
equally certain she will ensure that the<br />
values underpinning the company live<br />
on. That is very important to me.”<br />
Kaltenborn has been widely praised<br />
for her deft touch in negotiations<br />
about the commercial future of the<br />
sport during recent months and is<br />
now very much the public face of<br />
the team as Sauber takes up a more<br />
strategic, honorary role. In May, Sauber<br />
transferred one third of the equity<br />
of the Formula One team to her, an<br />
indication of the level of trust he has in<br />
the Indian-Austrian.<br />
Privately owned, Sauber has a<br />
longstanding engine agreement with<br />
Ferrari and, since the arrival of Perez<br />
50 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
A new alliance:<br />
Sauber announced<br />
an unprecedented<br />
partnership with<br />
2012 Uefa Champions<br />
League-winning soccer<br />
club Chelsea last season<br />
at the start of the 2011 season, what<br />
might be described as a reliance on<br />
Mexican sponsorship. At its core is<br />
healthy financial support from Carlos<br />
Slim, the chairman and chief executive<br />
of the giant Telmex corporation who is<br />
ranked by Forbes as the world’s richest<br />
man. Perez has long been backed by<br />
Escuderia Telmex, the company’s<br />
motorsport programme, while the<br />
team has attracted other sponsorship<br />
pesos on the back of its Perez/Telmex<br />
relationship, notably a new deal with<br />
Mexico’s tourist board in March 2012<br />
for 12 Grands Prix.<br />
Money matters<br />
In October the team signed a new<br />
three-year deal with Swiss technology<br />
firm Oerlikon until 2015, extending a<br />
long-term relationship, and there was<br />
also a novel tie-up with Premier League<br />
football team Chelsea FC. “We’re still<br />
developing it,” said Alex Sauber, the<br />
team’s marketing director and also<br />
the son of Peter, of the arrangement<br />
in October. “We launched a joint<br />
merchandising range and we’ll see how<br />
the market will respond to it. Some<br />
areas are obviously very new to both of<br />
us, but it’s a fact that everyone in Asia,<br />
where the growth potential is huge,<br />
loves football or Formula One. With<br />
the combination you reach a wider<br />
audience. But we really have to figure<br />
how this pays off.”<br />
Sauber’s pair of young drivers<br />
both had their moments, although<br />
it was the talented if erratic Perez<br />
who took most of the eye-catching<br />
results. Frustratingly for Sauber and<br />
worryingly for McLaren, the Mexican’s<br />
form deserted him in the final six races<br />
after it was confirmed he would be<br />
replacing Lewis Hamilton in <strong>2013</strong>.<br />
Across the season, in fact, Kobayashi<br />
scored points in nine races compared<br />
to Perez’s seven, even if Perez did<br />
accrue six more points.<br />
Kobayashi’s popularity amongst fans<br />
ultimately took second place to Sauber’s<br />
need to keep its Mexican income<br />
stream. Although reserve driver Esteban<br />
Gutierrez is not part of the Telmex<br />
racing squad, his nationality does make<br />
it more likely that the Mexican money<br />
will continue to flow into the team.<br />
With Gutierrez promoted for <strong>2013</strong><br />
and Nico Hülkenberg switching from<br />
Force India, Kobayashi found himself<br />
without a drive and out of Formula<br />
One. There was little or no support for<br />
him from Japanese companies; even<br />
Japanese firm NEC sponsored Sauber<br />
through its Mexican branch.<br />
Sauber’s C20 chassis will be<br />
remembered fondly, however, by the<br />
Hinwil-based team. Designed by<br />
Briton James Key before his departure<br />
on the eve of the car’s launch, it was<br />
successfully developed throughout<br />
the season by a combination of<br />
chief designer Matt Morris, head of<br />
aerodynamics Willem Toet and head of<br />
track engineering Giampaolo Dall’Ara.<br />
“We don’t have a technical director,”<br />
confirmed Monisha Kaltenborn,<br />
speaking at Monza in September.<br />
“That was my choice. They sit together<br />
and decide on a technical direction. It<br />
seems to be working and it’s a bit of a<br />
history at Sauber that we’ve always had<br />
very strong heads of department and<br />
then people under them. It’s always<br />
been the backbone of the team and it<br />
works well.”<br />
BLACK BOOK <strong>2013</strong> l 51
Nico Hülkenberg (right) has<br />
been recruited from<br />
Force India to lead a<br />
new-look line-up featuring<br />
Mexico’s Esteban Gutiérrez<br />
(below) and the promising<br />
young Dutch test driver<br />
Robin Frijns<br />
<strong>2013</strong>: Business<br />
Sauber will have to go some to match<br />
its 2012 exploits in <strong>2013</strong>, but if the<br />
evidence of the team’s launch at the<br />
end of January was any guide the Swiss<br />
team is very much up for the challenge.<br />
Finishing higher than last year’s sixth<br />
place in the championship will mean<br />
beating one of the sport’s marquee<br />
names but team principal Monisha<br />
Kaltenborn, whose calm attitude<br />
washes over the team, is too astute to<br />
make public her specific targets for the<br />
season ahead. “We’re not saying we<br />
want to finish in this or that position<br />
in the standings,” she said at the end of<br />
January, “as ultimately other factors will<br />
also come into play that are outside our<br />
control. What we can be clear about,<br />
however, is that we want to continue<br />
on our upward curve.<br />
“We’re well prepared, we’ve got the<br />
new car finished in good time and<br />
we’ve met the performance targets we<br />
52 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Like many teams,<br />
Sauber has elected<br />
for conservative<br />
development of its<br />
2012 car in creating the<br />
C32 and held resources<br />
back for 2014’s major<br />
regulation changes<br />
set ourselves internally. That puts us in<br />
a confident frame of mind.”<br />
Sauber has bounced back from<br />
BMW’s withdrawal at the end of<br />
the 2009 season quicker and more<br />
effectively than many predicted. A<br />
solidly run business, with founder<br />
Peter Sauber initially returned to the<br />
helm before he handed the keys to<br />
Kaltenborn last year, combined with<br />
a much-needed financial boost from<br />
a crop of Mexican sponsors and a<br />
good technical structure, has made<br />
the potentially troublesome switch<br />
from fully backed manufacturer team<br />
to independent challenger a relatively<br />
smooth one.<br />
“What we’ve achieved in those three<br />
years is remarkable, taking into account<br />
the economic situation,” said marketing<br />
director Alex Sauber in an interview<br />
with SportsPro late last year, although<br />
he added that the rehabilitation process<br />
has not been completed just yet. “What<br />
we’ve achieved is really great but we’re<br />
still suffering a bit. We went down to<br />
zero and now we’re still building back<br />
up. The podiums for us certainly helped<br />
to achieve more awareness, particularly<br />
as we are one of those middle-ranged<br />
teams; as soon as you get to a podium<br />
the awareness you generate in media<br />
is just a lot bigger and you can do a<br />
lot more out of it. I would say it’s a<br />
door-opener to approach brands, but<br />
it’s not a guaranteed thing that a deal<br />
happens. It starts conversations rather<br />
than finishes them.”<br />
Despite the departure of Sergio<br />
Perez, the team has retained its<br />
Mexican support for <strong>2013</strong>, with<br />
Carlos Slim’s Telmex continuing<br />
to provide the bulk of sponsorship<br />
income. The promotion of Gutiérrez<br />
to a race seat cannot fail to have<br />
helped in that regard but there is<br />
also a sense that Sauber has become<br />
something of a challenger brand in<br />
Formula One – still an almost familyrun<br />
operation, it also evokes memories<br />
of what the sport once was. Mexican<br />
money aside, the team has a small crop<br />
of long-term partners: watchmaker<br />
Certina renewed for a ninth season in<br />
January. Smaller deals have also been<br />
put in place with racing equipment<br />
manufacturer OMP and automotive<br />
inspection company Dekra, the latter<br />
an extension of the firm’s personal deal<br />
with Nico Hülkenberg.<br />
<strong>2013</strong>: Sporting<br />
In line with the trend across Formula<br />
One, the Sauber C32 is an evolution<br />
of the C31 chassis that proved so<br />
effective last year. No team is keen to<br />
make wholesale changes for <strong>2013</strong> given<br />
that major technical reforms are on the<br />
horizon for 2014. Sauber’s cloth must<br />
be cut accordingly, with some resources<br />
held back to prepare effectively for next<br />
season. In the meantime, the technical<br />
team at the Hinwil headquarters<br />
in Switzerland has focused on<br />
BLACK BOOK <strong>2013</strong> l 53
Sauber<br />
* Cash component to deal<br />
Sponsor Total Value Contract Start Contract End Status Sector<br />
Claro US$5m* October 2010 Undisclosed Premium Partner Telecoms<br />
Telmex US$15m* October 2010 Undisclosed Premium Partner Telecoms<br />
NEC US$3m* March 2011 Undisclosed Premium Partner Technology<br />
Cuervo Tequila US$5m* January 2011 Undisclosed Premium Partner Beverages<br />
Chelsea FC US$0.5m May 2012 Undisclosed Premium Partner Other<br />
Oerlikon US$0.5m* January 2000 December 2015 Premium Partner Technology<br />
Interproteccion US$0.5m* January 2011 Undisclosed Premium Partner Financial<br />
Certina US$0.6m* January 2004 December <strong>2013</strong> Premium Partner Watch<br />
Emil Frey US$0.5m* May 2010 December <strong>2013</strong> Premium Partner Automotive<br />
Dekra US$0.3m* January <strong>2013</strong> December <strong>2013</strong> Official Partner Automotive<br />
Mitsubishi Electric US$0.3m* January 2006 Undisclosed Official Partner Automotive<br />
Nabholz US$0.2m January 2011 Undisclosed Official Partner Fashion<br />
NetApp US$0.1m January 2012 Undisclosed Official Partner Technology<br />
OMP US$0.2m January <strong>2013</strong> Undisclosed Official Partner Technology<br />
Thomann US$0.2m January 2010 Undisclosed Official Partner Automotive<br />
Walter Meier US$0.6m September 2000 Undisclosed Official Partner Technology<br />
Brutsch/Rüegger US$0.3m January 2002 Undisclosed Promotional Partner Automotive<br />
Wiklund US$0.1m February <strong>2013</strong> Undisclosed Official Partner Fashion<br />
On US$0.1m February <strong>2013</strong> Undisclosed Official Partner Fashion<br />
Interoll US$0.1m January <strong>2013</strong> Undisclosed Official Partner Technology<br />
Jura US$0.1m January 2012 Undisclosed Promotional Partner Beverages<br />
MTO US$0.1m January <strong>2013</strong> Undisclosed Official Partner Automotive<br />
P1 US$0.1m January 2011 Undisclosed Promotional Partner Fashion<br />
Pilatus US$0.6m January 2010 Undisclosed Promotional Partner Other<br />
Plozza Wine Group US$0.1m January 2011 Undisclosed Promotional Partner Beverages<br />
Riedel Communications US$0.1m January 2011 Undisclosed Promotional Partner Other<br />
Other Income<br />
FOM TV US$64m January 2009 December 2012 TV monies -<br />
Total<br />
US$98.2m<br />
developing a car that was good enough<br />
for four podiums in 2012. “The C31<br />
was an extremely competitive car with<br />
many strengths,” said Sauber’s chief<br />
designer Matt Morris. “Our aim was<br />
to further improve these strengths and<br />
eliminate its few weaknesses.<br />
“Our car looked after its tyres very<br />
well during races last year. However,<br />
we had problems now and again when<br />
it came to getting the maximum out<br />
of them in qualifying. We’ve looked at<br />
this phenomenon closely and made the<br />
required adjustments.”<br />
Morris added: “We have set ourselves<br />
lofty goals with the Sauber C32-<br />
Ferrari, and I’m confident that we’ll<br />
be able to meet them. The C31 gave<br />
us a very good basis, to which we’ve<br />
made further improvements. Our aim<br />
is to line up for <strong>2013</strong> with a car that<br />
is competitive from the first race, but<br />
which also offers extensive potential for<br />
further development.”<br />
The team’s ace in the pack this<br />
season may turn out to be Nico<br />
Hülkenberg, recruited from Force<br />
India. The 25-year-old German will<br />
only be competing in his third full<br />
season in the sport – he took a year out<br />
in 2011 as Force India’s reserve driver<br />
having debuted for Williams in 2010 –<br />
but he already looks like a polished<br />
54 l BLACK BOOK <strong>2013</strong>
Despite a change in livery<br />
from white to black for<br />
Sauber in <strong>2013</strong> there is a<br />
familiarly spartan quality<br />
to the car after another<br />
challenging scrap for<br />
commercial backing<br />
TELMEX<br />
US $15m<br />
NEC<br />
US $3m<br />
CERTINA<br />
US $0.6m<br />
CLARO<br />
US $5m<br />
Grand Prix driver: meticulous,<br />
intelligent and quick. The team will be<br />
looking to him to lead development<br />
on the car and move it forward and<br />
all the signs are he will do just that.<br />
His reward at the end of <strong>2013</strong> may<br />
well be a drive at Ferrari, whose close<br />
association with Sauber extends well<br />
beyond a supply of engines.<br />
Hülkenberg’s new teammate,<br />
Gutiérrez, has spent plenty of time<br />
being groomed for a race seat as a<br />
reserve driver for the team. Sauber<br />
has high hopes for the 21-year-old<br />
Mexican, who won the 2010 GP3<br />
championship and has since spent two<br />
years in GP2, finishing 13th in 2011<br />
and third last season. He has tested for<br />
Sauber at the end of every season since<br />
2009, but a sustained period of winter<br />
testing will be vital to his performance<br />
in the early races of the year. “He has<br />
always stayed in close contact with our<br />
engineers, which has allowed him to<br />
learn a lot about Formula One,” said<br />
Kaltenborn. “I’m in no doubt he is now<br />
ready to take the final step and put his<br />
outstanding talent on display.”<br />
Sauber has a history of promoting<br />
new talent over the years, including<br />
Kimi Raikkonen, Felipe Massa, Robert<br />
Kubica and Perez, and already there is<br />
another youngster waiting in the wings.<br />
Highly rated 21-year-old Dutchman<br />
Robin Frijns replaces Gutiérrez as the<br />
team’s reserve driver this season.<br />
56 l BLACK BOOK <strong>2013</strong>
Force India<br />
2012 in review: Solid progress<br />
2012 was a middling sort of year for<br />
Sahara Force India. The team scored<br />
40 points more than in 2011 but<br />
finished a place lower, seventh, in<br />
the world championship. It was an<br />
indication of how much more evenly<br />
spread the nine points-scoring teams<br />
were in 2012 compared to the Red<br />
Bull-dominated 2011. Unlike Lotus,<br />
Mercedes and Williams, however,<br />
Force India didn’t manage to win a<br />
Grand Prix and, unlike Sauber, neither<br />
did it make the podium once in 20<br />
races. The team failed to get the type<br />
of standout result that others in the<br />
midfield enjoyed, although it was well<br />
on the way to one at the last race of<br />
the season until Nico Hülkenberg<br />
collided with Lewis Hamilton.<br />
So it was a solid year and no more<br />
than that for a team which runs in<br />
Indian colours but is run from a<br />
factory on the fringes of Silverstone<br />
in the UK. Majority owner Vijay<br />
Mallya had a more troubled year<br />
back at home, elements of his<br />
business empire struggling amidst<br />
high controversy and a great deal of<br />
negative publicity. His Kingfisher<br />
Airlines stumbles on for the moment<br />
and Mallya sold a sizeable chunk of<br />
his spirits business, United Spirits,<br />
partly to reduce that company’s debts<br />
and to free up capital for the flagging<br />
carrier. None of those issues had a<br />
direct impact on the Formula One<br />
team, which Mallya co-owns with<br />
Sahara, in 2012 but speculation along<br />
those lines did it no favours during the<br />
year. Mallya himself, perhaps believing<br />
that the Formula One paddock<br />
offered some kind of sanctuary<br />
from his real world problems, was<br />
decidedly unimpressed whenever he<br />
was asked about the subject by the<br />
sport’s press pack. They were, however,<br />
understandable enquiries, especially<br />
given the dearth of non-Mallya<br />
companies on the cars.<br />
Fresh investment<br />
The Sahara Group, which bought into<br />
Force India as a major shareholder in<br />
2011, endured its own set of troubles<br />
back home in 2012 but continued<br />
its investment in the team, which<br />
is coming in three US$33 million<br />
instalments. Sahara India Pariwar<br />
owns a 42.5 per cent stake, the same<br />
shareholding as Mallya, with the<br />
remaining 15 per cent retained by the<br />
Mol family – the majority owners of<br />
the team in its previous guise as Spyker.<br />
At the end of the season, Mallya<br />
confirmed that the board was planning<br />
a UK£50 million capital investment<br />
programme in the team and facilities.<br />
“At the Christmas party Vijay<br />
expanded on that,” said deputy team<br />
principal Robert Fernley, who leads the<br />
team day to day in Mallya’s frequent<br />
absence, at the end of the season. “I<br />
think it’s given everybody tremendous<br />
enthusiasm. At the moment I’m looking<br />
for the right land allocation so we can<br />
build the facilities that we need. Things<br />
are going to move at pace in the new<br />
year. I think everybody is aware that<br />
we’re keen to progress and become one<br />
of the podium-contending teams. Vijay<br />
will not be happy until we’re there.”<br />
Fernley admitted to being cheered<br />
by the team’s strong end to the season,<br />
in which it became a frequent pointsscorer.<br />
“From our point of view as a<br />
season, [it was] a little disappointing<br />
from the beginning,” he said,<br />
“something we need to address, but<br />
generally once we got our act together,<br />
we were very, very strong.<br />
“I think it’s been our Achilles’ heel<br />
for two seasons that we’ve started<br />
slow. There is no reason that I can<br />
see – and obviously it’s the challenge<br />
for the team – not to hit the ground<br />
running. We have to come out of the<br />
box performing in the same way as<br />
we finished the season and there’s no<br />
reason why we can’t achieve that.<br />
On the driver front Nico Hülkenberg,<br />
who spent 2011 as test and reserve<br />
driver for Force India, fully justified his<br />
promotion to the race team for the 2012<br />
season and, indeed, emerged as one<br />
of the stars of the year. The German,<br />
a former A1GP and GP2 champion,<br />
played his way in steadily through the<br />
first few races, coming off the back of a<br />
year of testing after his departure from<br />
Williams at the end of 2010. Once<br />
he found his feet, he was more than a<br />
match for new teammate Paul di Resta.<br />
Hülkenberg can count himself mightily<br />
unfortunate to have been overlooked<br />
by McLaren as a replacement for Lewis<br />
Hamilton. As Sergio Perez heads there,<br />
having been long considered a potential<br />
Ferrari driver of the future, Hülkenberg<br />
seems bound the other way, accepting<br />
a <strong>2013</strong> drive at Sauber that may prove<br />
to be a stopgap before a move to<br />
Maranello. The signs of 2012 suggest he<br />
would not be out of his depth in Italy.<br />
After a good first season in Formula<br />
One, 2012 was solid and no more for<br />
Di Resta. The Scotsman – for whom the<br />
term ‘dour’ might have been invented –<br />
failed to make the kind of progression<br />
that might have been expected from a<br />
man so highly praised by the British<br />
press corps in 2011. There were some<br />
good drives through the course of the<br />
year but Hulkenberg had taken control<br />
of the team by the end of the season.<br />
Di Resta’s slightly surly public attitude<br />
towards not being signed up by one of<br />
the bigger names probably did little to<br />
endear him to a Force India team with<br />
whom he will race again in <strong>2013</strong>.<br />
“I think finishing one position<br />
down will make us hungry for next<br />
year,” was how deputy team principal<br />
Robert Fernley summed the season up<br />
at its conclusion. “We shouldn’t come<br />
away disappointed. Obviously we’ve<br />
lost a position in the championship,<br />
which is both frustrating and obviously<br />
costly but on the other hand we<br />
scored more points than we’ve ever<br />
done in our history, so this particular<br />
year was unusual.”<br />
58 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Both UB Group and<br />
Sahara Group had some<br />
financial difficulties<br />
to contend with in<br />
2012 but their collective<br />
commitment to<br />
Sahara Force India<br />
is unwavering<br />
BLACK BOOK <strong>2013</strong> l 59
According to Force India<br />
technical director Andrew<br />
Green, the VJM06 is “a<br />
brand new car from the<br />
ground up” for the <strong>2013</strong><br />
season, with an effort<br />
made to rework all of the<br />
elements that went into last<br />
year’s model<br />
<strong>2013</strong>: Business<br />
“We begin <strong>2013</strong> hungrier than ever<br />
before,” said Sahara Force India team<br />
principal Vijay Mallya, giving his<br />
verdict as the <strong>2013</strong> car was launched<br />
at the end of January. The challenge<br />
of building on the team’s best<br />
season yet in terms of points, if not<br />
championship position, has begun in<br />
optimistic fashion. There have been<br />
many words said and written about<br />
the supposedly perilous finances of the<br />
Anglo-Indian operation but while it<br />
is true that it is heavily reliant on the<br />
backing of Mallya, his companies and,<br />
most recently, the Sahara Group, the<br />
current investment in facilities and<br />
infrastructure certainly doesn’t match<br />
the perception of a team under serious<br />
financial pressure.<br />
Mallya offered an update on<br />
that investment programme as the<br />
VJM06 was unveiled at a typically<br />
damp Silverstone. “The programme is<br />
underway and we are currently looking<br />
for the land to build our new wind<br />
tunnel,” he said. “The team has done<br />
a remarkable job with the resources<br />
that we already have, but if we want<br />
to realise our long-term ambitions we<br />
need to give our engineers the best<br />
tools available, starting with a state<br />
of the art wind tunnel. The more<br />
immediate benefits of our investment<br />
are already in place for <strong>2013</strong> with<br />
greater CFD capacity.”<br />
Although part Mallya-owned UB<br />
Group brands including Kingfisher,<br />
Vladivar, Royal Challenge and Whyte<br />
& Mackay still dominate the car, the<br />
team has succeeded in luring Dutch<br />
watchmaker TW Steel, one of the<br />
more active Formula One sponsors,<br />
from Lotus. Jordy Cobelens, the<br />
exuberant co-owner of the brand,<br />
made a point of emphasising the “key<br />
growth opportunity” the team provides<br />
in India as the deal was announced.<br />
Smaller supply deals have been agreed<br />
with Chatham Marine for footwear<br />
and with equipment rental company<br />
Speedy Services, while there is also a<br />
new technical partnership in place with<br />
3D Systems Corporation.<br />
Mallya and Sahara, however, remain<br />
integral to the financial wellbeing of<br />
Force India. The former is confident<br />
that the team will make a move forward<br />
in <strong>2013</strong>. “The first objective is to hit<br />
the ground running and have a strong<br />
start to the season,” he said. “That’s<br />
been our weakness for the last couple<br />
of seasons so we need to build on the<br />
momentum and carry on where we left<br />
off in 2012.”<br />
60 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Paul di Resta (right),<br />
seen here unveiling<br />
the VJM06 with<br />
deputy team principal<br />
Bob Fernley, will be<br />
partnered by the<br />
returning Adrian Sutil<br />
this year after a solid<br />
but uninspiring 2012<br />
<strong>2013</strong>: Sporting<br />
Paul Di Resta stays with Force India<br />
for a third successive year after failing<br />
to secure a slot further up the grid.<br />
The Scotsman had a patchy 2012 but<br />
is a solid performer and has proved<br />
well capable of delivering points on<br />
a regular basis, even if his two years<br />
in the sport have not yet produced a<br />
spectacular result to distinguish him<br />
from the pack. “He had a difficult end<br />
to last season,” Mallya conceded, “but<br />
we’ve worked hard to understand those<br />
issues and I believe he can step up<br />
another level this year.”<br />
The identity of Di Resta’s <strong>2013</strong><br />
teammate was not revealed until<br />
BLACK BOOK <strong>2013</strong> l 61
Despite the arrival in recent<br />
times of sponsors like<br />
watchmaker TW Steel, the<br />
Force India livery is still<br />
dominated by UB Group<br />
and Sahara brands<br />
VLADIVAR<br />
US $2m<br />
KINGFISHER<br />
US $5.2m<br />
SAHARA<br />
US $28m<br />
WHYTE & MACKAY<br />
US $6m<br />
February, weeks after the launch of the<br />
new car and the beginning of testing<br />
in Spain. In the end the nod went to<br />
Adrian Sutil, who drove for the team for<br />
several years until the end of 2011 but<br />
sat out the 2012 season. The German,<br />
who brings backing from computer firm<br />
Medion, had been engaged in a testing<br />
shootout of sorts with Jules Bianchi,<br />
the young Ferrari-backed Frenchman<br />
who had been favourite for the drive<br />
for much of the winter. Ultimately,<br />
however, Bianchi’s position in the team<br />
always seemed dependent on whether<br />
Force India and Ferrari could agree an<br />
engine deal for the 2014 season. With<br />
that not immediately forthcoming,<br />
Sutil was invited back to test the car<br />
at the second pre-season test and had<br />
his return confirmed just before the<br />
third. A solid bet and no more, Sutil is<br />
62 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Force India<br />
* Cash component to deal<br />
Sponsor Total value Contract Start Contract End Status Sector<br />
Sahara US$33m* October 2011 Ongoing Owner Other<br />
Vladivar US$2m* January 2012 Ongoing Partner Beverages<br />
Kingfisher US$5.2m* February 2008 Ongoing Partner Beverages<br />
Whyte & Mackay US$6m* February 2008 Ongoing Partner Beverages<br />
UB Group US$1.9m* February 2008 Ongoing Partner Other<br />
Royal Challenge US$2.7m* February 2008 Ongoing Partner Beverages<br />
Kingfisher Airlines US$9.5m* February 2008 Ongoing Partner Airline<br />
TW Steel US$3m* January <strong>2013</strong> Undisclosed Partner Watch<br />
Medion US$5m* March <strong>2013</strong> December <strong>2013</strong> Partner Technology<br />
Internap US$0.8m May 2012 Undisclosed Partner Technology<br />
Alpinestars US$0.8m February 2008 Undisclosed Partner Fashion<br />
Aethra US$1m* February 2012 Undisclosed Partner Automotive<br />
Chatham Marine US$0.1m May 2012 Undisclosed Supplier Fashion<br />
Reebok India US$0.8m January 2008 December <strong>2013</strong> Partner Fashion<br />
Muc-Off US$0.1m January 2010 Undisclosed Partner Automotive<br />
3D Systems US$0.1m January <strong>2013</strong> Undisclosed Partner Technology<br />
AVG US$0.1m January 2007 Undisclosed Partner Automotive<br />
Schroth Racing US$0.1m January 2010 Undisclosed Partner Automotive<br />
UPS Direct US$0.2m January 2007 Undisclosed Partner Other<br />
STL US$0.1m January 2010 December 2014 Partner Technology<br />
Still US$0.1m January 2012 Undisclosed Partner Automotive<br />
Miller Electric US$0.1m January <strong>2013</strong> Undisclosed Partner Automotive<br />
Speedy US$0.1m January <strong>2013</strong> December <strong>2013</strong> Partner Other<br />
Other Income<br />
FOM TV US$54.5m January 2009 December 2012 TV monies -<br />
Total<br />
US$122.3m<br />
a conservative choice but one likely to<br />
match up well against Di Resta, whom<br />
he partnered two years ago.<br />
As far as the car is concerned,<br />
technical director Andrew Green has<br />
taken the lead, although the team is able<br />
to take advantage of its technical support<br />
partnership with McLaren and, despite<br />
the Ferrari flirtation, an engine supply<br />
contract with Mercedes. Green insists<br />
the VJM06 car is a big improvement<br />
on the 2012 effort. “It’s a brand new<br />
car from the ground up – everything is<br />
new,” he said. “We discussed carrying<br />
over big chunks of last year’s car,<br />
including the chassis, but decided not<br />
to. There were still some gains to be had<br />
with the chassis, so we elected to take<br />
the performance benefits. However, the<br />
car is evolution rather than revolution<br />
compared with last year, simply because<br />
of the nature of the regulations.”<br />
Green added: “Obviously the<br />
regulations are reasonably stable from<br />
last year to this year and the ban on<br />
the double DRS didn’t affect us, so the<br />
transition has been more straightforward<br />
than in previous years. Last year we<br />
basically stopped bringing developments<br />
to the track just after the middle of<br />
the season so the trackside guys had a<br />
chance to understand what they had,<br />
rather than it changing every race, which<br />
is what had been happening up to that<br />
point. When you have a platform that is<br />
stable you can refine it and really dial it<br />
in. We focused on trying to understand<br />
what the car was doing, where it differed<br />
from our models and, importantly,<br />
how we worked the tyres. We used that<br />
extra knowledge for this year’s car and it<br />
helped quite a lot.”<br />
BLACK BOOK <strong>2013</strong> l 63
Williams<br />
The FW34 carried Williams<br />
to a much improved<br />
showing in 2012 as the<br />
team found the pace to<br />
break from the midfield<br />
pack and once again<br />
threaten the podium places<br />
2012 in review: Back on the top step<br />
No result in 2012 was as celebrated<br />
as Pastor Maldonado’s victory at<br />
the Spanish Grand Prix in May.<br />
Maldonado’s drive was cool, calm and<br />
collected and the Venezuelan fully<br />
deserved his day in the sun; the real<br />
joy, however, was for his team, for<br />
whom it was a first victory since Juan<br />
Pablo Montoya won the 2004 Brazilian<br />
Grand Prix.<br />
It was certainly a dramatic afternoon<br />
for Williams, with a major fire in the<br />
garage curtailing the celebrations and<br />
injuring several mechanics. It was a<br />
mercy the incident, caused by a highvoltage<br />
KERS unit exploding, didn’t<br />
have a much worse outcome.<br />
Overall, 2012 was a much improved<br />
year for the British team, although one<br />
in which it could have achieved more.<br />
“The FW34 was a strong car and on the<br />
whole we feel that we should have done<br />
better with the equipment we had,”<br />
was Sir Frank Williams’ considered<br />
summary at the end of the season, and<br />
it was hard to disagree given that 25 of<br />
the 76 points the team scored all season<br />
came on one Barcelona afternoon.<br />
“Our long-run pace was consistently<br />
strong and whilst we need to improve<br />
on our qualifying pace, at certain tracks<br />
we did manage to give the top teams a<br />
run for their money over a single lap. Of<br />
course the win in Spain was memorable<br />
and showed that we can produce racewinning<br />
cars. The rate of progression<br />
we have shown over 2011 has been very<br />
encouraging and I’m confident that with<br />
the people we have in place, <strong>2013</strong> will<br />
see us move further up the grid.”<br />
New faces<br />
While Sir Frank remains team principal<br />
of the team which bears his name,<br />
Toto Wolff, the Austrian entrepreneur<br />
who bought into Williams in 2011,<br />
took a much more prominent role in<br />
2012, especially after the departure of<br />
chief executive Adam Parr – the man<br />
once considered Sir Frank Williams’<br />
successor-in-waiting – in March. It was<br />
widely believed that Parr left due to his<br />
inability to strike a new commercial<br />
deal for Williams with Bernie<br />
Ecclestone. In his place, and with an<br />
agreement secured, Wolff seemed to be<br />
making the transition into the team’s<br />
frontman by the end of the year, only<br />
to dramatically take up a role as the<br />
new Mercedes head of motorsport over<br />
the winter, leaving Williams’ succession<br />
plans somewhat derailed again.<br />
Despite the missed opportunities on<br />
the track and a touch of turmoil off it,<br />
there was some good news at the end<br />
of the year. The team’s share price – it<br />
floated 21 per cent of shares on the<br />
Frankfurt Stock Exchange in March<br />
2011 – finally rallied and reached the<br />
launch price of €12.50 per share again.<br />
On the technical front, the FW34<br />
was a real advance on its predecessor and<br />
much of the credit for that should go to<br />
Mike Coughlin, who took up the role<br />
of technical director after Sam Michael’s<br />
departure in 2011. Coughlin is best<br />
known for his role in the infamous 2007<br />
McLaren-Ferrari espionage affair, for<br />
which he was banned from the sport.<br />
Having served his time, he has been<br />
welcomed warmly at Williams and<br />
did an excellent job taking full hold<br />
of the technical reins in 2012. Chief<br />
operations engineer Mark Gillan was<br />
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Team by Team <strong>2013</strong><br />
also, by all accounts, an important figure<br />
in the running of the team during 2012,<br />
but he resigned his position before <strong>2013</strong><br />
dawned and will pursue a career as a<br />
freelance consultant.<br />
Maldonado makes his mark<br />
Pastor Maldonado<br />
showed last year that he<br />
has the talent to go with<br />
his financial support,<br />
winning the Spanish<br />
Grand Prix - Williams’<br />
first victory since 2004<br />
Driver-wise, Maldonado was teamed<br />
with a fellow South American in 2012,<br />
Brazil’s Bruno Senna, and had the<br />
higher highs over the course of the<br />
season – notably his Spanish win. But<br />
Maldonado is still very much a rough<br />
diamond: hugely quick, but also hugely<br />
unpredictable. His victory in Barcelona<br />
was as good as his apparent act of<br />
retaliation during Monaco practice<br />
against Sergio Perez, a reminder of a<br />
similar incident with Lewis Hamilton at<br />
Spa in 2011, was bad. His jump start at<br />
the Belgian Grand Prix was ridiculous<br />
and justifiably resulted in a penalty, one<br />
of a bundle accumulated over the course<br />
of the season. Maldonado is critical to<br />
the team, however, as he brings millions<br />
of Venezuelan petro-dollars with him, an<br />
important part of Williams’ budget. He<br />
still needs taming, but he is capable of<br />
delivering the goods.<br />
Senna, meanwhile, couldn’t quite<br />
match the pace of Maldonado over the<br />
year and didn’t have the spectacular<br />
highs, or lows, of his teammate. The<br />
Brazilian is a likeable presence on the<br />
Formula One scene, but his ultimate<br />
ability remains open to question. He<br />
was, though, under the cosh from the<br />
start at Williams, placed as he was in the<br />
unfortunate situation of being required<br />
to give up his car for one practice session<br />
at 15 races throughout the year. That<br />
the man who took that seat, Valterri<br />
Bottas, a highly rated Finn managed<br />
by Wolff, was given the nod for a <strong>2013</strong><br />
race seat was not too much of a surprise<br />
after that. Getting punted out of the<br />
Brazilian Grand Prix, his home race,<br />
by a championship-chasing Sebastian<br />
Vettel may have been Senna’s last act as a<br />
Formula One driver.<br />
BLACK BOOK <strong>2013</strong> l 65
The <strong>2013</strong> race team of<br />
Pastor Maldonado and<br />
Valtteri Bottas bring<br />
heavyweight backing from<br />
Venezuela and Finland<br />
respectively but both are<br />
also expected to produce on<br />
the track<br />
<strong>2013</strong>: Business<br />
Despite the continuing presence of Sir<br />
Frank Williams at the top of the team,<br />
there have been many key personnel<br />
changes at Williams over the past<br />
few years. And just when it looked as<br />
though there might finally be some<br />
stability at executive level this winter,<br />
the rug was very much pulled from<br />
under the team when Toto Wolff,<br />
the Austrian executive director and<br />
shareholder, made a shock switch to<br />
Mercedes Benz to head up its worldwide<br />
motorsport activity. Although Wolff<br />
will retain his shareholding in Williams<br />
Grand Prix Holdings, believed to be<br />
around 15 per cent, the Austrian will<br />
have no other ties to the company. It<br />
was a major blow, especially coming<br />
only months after the departure of<br />
chairman Adam Parr.<br />
Sir Frank Williams was phlegmatic<br />
and paid tribute to Wolff as his<br />
departure was confirmed in January.<br />
“He was a key support to me as<br />
executive director last season,” he<br />
said, “deputising at a number of races<br />
when I was unable to attend. However,<br />
positions such as the one offered to<br />
him by Mercedes do not come around<br />
often. Toto has a long history with<br />
them and I certainly was not going to<br />
stand in the way of him accepting this<br />
once in a lifetime opportunity.”<br />
Wolff’s executive director duties have<br />
66 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Williams did not<br />
introduce the FW35<br />
until after the first<br />
round of pre-season<br />
testing but technical<br />
director Mike Coughlin<br />
remains “pleased with<br />
the gains” made over<br />
the winter<br />
been shared amongst the other members<br />
of the board’s executive committee, but<br />
it is hardly an ideal scenario and again<br />
leaves the long-term stewardship of the<br />
team under question.<br />
Aside from Sir Frank himself,<br />
the key executives at the team are<br />
chief executive Alex Burns, finance<br />
director Louise Evans, general<br />
counsel Mark Biddle and Claire<br />
Williams, the director of marketing<br />
and communications.<br />
Commercially, Williams seems in<br />
better shape than it has been for some<br />
time. PDVSA’s dollars remain crucial to<br />
the team’s overall budget but the arrival<br />
of Valtteri Bottas in the race team<br />
has led to the expansion of deals with<br />
two Finnish companies, Kemppi and<br />
Wihuri. As the FW35 was launched,<br />
the team announced a renewal and<br />
expansion of its deal with recruitment<br />
firm Randstad, for what will be its<br />
eighth consecutive year of sponsorship,<br />
and a new multi-year deal with global<br />
information services group Experian.<br />
“Williams has been at the top many<br />
times over the last 30 years,” Sir Frank<br />
Williams said in February. “It’s the<br />
nature of the sport to have ups and<br />
downs, but when we are down we<br />
always fight our way back. We will<br />
have to wait until Australia to truly<br />
see what we have, but we believe it is a<br />
step forward from last year’s car which<br />
was also a very competitive vehicle.”<br />
BLACK BOOK <strong>2013</strong> l 67
Williams<br />
* Cash component to deal<br />
Sponsor Total Value Contract Start Contract End Status Sector<br />
PDVSA/Venezuela Tourism US$47m* January 2011 Undisclosed Partner Oil/Fuel<br />
Randstad US$3m* January 2004 December 2012 Partner Other<br />
Thomson Reuters US$3m* January 2000 Undisclosed Partner Media<br />
Wihuri US$2m* May 2012 December <strong>2013</strong> Partner Technology<br />
Kemppi US$2m* May 2012 December <strong>2013</strong> Partner Automotive<br />
Experian US$4m* February <strong>2013</strong> Undisclosed Partner Technology<br />
Oris US$2m* January 2003 December <strong>2013</strong> Partner Watch<br />
Puma US$0.3m January 2012 Undisclosed Partner Fashion<br />
PPG US$0.7m March 2003 Undisclosed Partner Automotive<br />
Man US$0.8m January 2000 Undisclosed Partner Automotive<br />
Michael Caines MBE US$0.2m February 2011 Undisclosed Partner Other<br />
Ingenie US$0.2m November 2011 Undisclosed Partner Other<br />
Other Income<br />
FOM TV US$51.5m January 2009 December 2012 TV monies -<br />
Total<br />
US$116.7m<br />
WIHURI<br />
US $2m<br />
PDVSA<br />
US $47m<br />
RANDSTAD<br />
US $3m<br />
EXPERIAN<br />
US $4m<br />
<strong>2013</strong>: Sporting<br />
Williams was the last of the 11 teams<br />
to launch its <strong>2013</strong> car, unveiling the<br />
FW35 before the second pre-season<br />
test of the year in Barcelona midway<br />
through February. A revised FW34<br />
took the track at the first test in<br />
Jerez, with the first four days of<br />
winter testing used as an evaluation<br />
of Pirelli’s <strong>2013</strong>-specification tyres.<br />
The team hopes to capitalise on the<br />
extra time spent in the wind tunnel<br />
developing the concept of the FW35.<br />
Some 80 per cent of the car is new,<br />
although Williams describes it as an<br />
evolution of the race-winning FW34.<br />
The car features a new gearbox,<br />
new rear suspension, new radiators,<br />
a new floor, new exhausts, new<br />
bodywork, and a new nose, while<br />
the team also says it has saved a<br />
‘significant amount’ of weight.<br />
“Given the rule stability over the<br />
winter, I’m pleased with the gains<br />
that we’ve been able to make with<br />
this car,” said technical director Mike<br />
Coughlin as the new model was<br />
launched. “It’s a better, more refined<br />
Formula One car than the FW34<br />
and I think everyone involved in the<br />
project can feel proud of the work<br />
they’ve done.<br />
“The Coanda effect is going to<br />
be a big thing for us,” Coughlin<br />
added, examining the development<br />
race ahead. “There’s been no rule<br />
clarification concerning this area of<br />
the car, so we’ll work closely with<br />
68 l BLACK BOOK <strong>2013</strong>
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The Williams team has high<br />
hopes for 23-year-old Finn<br />
Valtteri Bottas, who will<br />
step into a race seat this<br />
year after winning the GP3<br />
championship in 2011 and<br />
impressing as a test driver<br />
in 2012<br />
Renault to maximise the available<br />
gains. Use of the DRS is more<br />
restricted this year, so we’ll take some<br />
resource away from that and focus on<br />
other areas.”<br />
The team’s technical and engineering<br />
structure has changed over the winter,<br />
with Xevi Pujolar promoted from a<br />
senior race engineer role to a newly<br />
created position as chief race engineer.<br />
Andrew Murdoch and Jonathan<br />
Eddolls move into race engineer<br />
positions. Other key figures are head<br />
of aerodynamics Jason Somerville,<br />
chief designer Ed Wood and race team<br />
manager Dickie Stanford.<br />
Pastor Maldonado – “a delightful<br />
character who is a massively<br />
determined racer,” according to Sir<br />
Frank Williams – begins his third<br />
season with the team and is an<br />
established, if still erratic, presence on<br />
the grid. Williams will be expecting<br />
more consistent points finishes this<br />
year from a man who proved capable<br />
of the ridiculous and the sublime in<br />
2012. The Venezuelan is a popular<br />
character in the team and has, to a<br />
large extent, now justified his place<br />
in Formula One despite it being<br />
fuelled by money from his homeland.<br />
Nevertheless, <strong>2013</strong> is a year in which<br />
he must show he is capable of stringing<br />
together a full season of consistency to<br />
go with his undoubted speed.<br />
There are high hopes that in<br />
Valtteri Bottas Williams may have<br />
uncovered a real gem. The 23-yearold<br />
Finn, articulate and intelligent,<br />
has been promoted from the reserve<br />
driver role. The 2011 GP3 champion,<br />
described by Sir Frank Williams in<br />
February as a “highly gifted driver”,<br />
has plenty of experience of the<br />
team already and is likely to give<br />
Maldonado a run for his money once<br />
he settles into his race seat.<br />
Maldonado and Bottas is a stronglooking<br />
pairing which, combined with<br />
a well-tuned car, should see Williams<br />
take a step forward in <strong>2013</strong>.<br />
70 l BLACK BOOK <strong>2013</strong>
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Toro Rosso<br />
Daniel Ricciardo (left)<br />
and Jean-Eric Vergne<br />
(right) were a close<br />
match for each other in<br />
2012, with the former<br />
performing better in<br />
qualifying and the latter<br />
scoring more world<br />
championship points<br />
2012 in review: back of the midfield<br />
In a year where the midfield runners<br />
often came to the fore, Toro Rosso<br />
never did. The Italian team, funded of<br />
course by Austria’s Red Bull, ultimately<br />
finished a rather disappointing ninth<br />
in the constructors’ championship.<br />
There was an upturn in form towards<br />
the end of the season, culminating<br />
in points finishes in six of the last<br />
nine races, but overall the team was<br />
more often than not to be found in<br />
the lower reaches of the pack – and<br />
sometimes even in the not-so-sweet<br />
spot behind the main midfield runners<br />
but well ahead of the stragglers,<br />
Caterham, Marussia and HRT.<br />
“I must confess I am not entirely<br />
satisfied,” said team principal Franz<br />
Tost in an interview with the official<br />
Formula One website in November.<br />
“The performance of the car is not on<br />
the level I would want it to be, or that<br />
I had expected. The car is too slow.<br />
Period. We definitely have to sort that<br />
out because next year we should have<br />
drivers with enough experience to get<br />
somewhere with a good car, preferably<br />
at the front of the midfield.”<br />
Technical shake-up<br />
Although Toro Rosso’s core<br />
management remained in place<br />
– Austrian Tost remains firmly in<br />
command of a team overseen by<br />
Helmut Marko, Red Bull’s motorsport<br />
consultant – there were several changes<br />
to the technical set-up during the<br />
course of the season. Most notable<br />
was the departure of veteran Italian<br />
engineer Giorgio Ascanelli, who had<br />
been the team’s technical director<br />
during its formative years following<br />
Red Bull’s buyout of Minardi, and<br />
the arrival in his place of Englishman<br />
James Key, who left Sauber for Italy.<br />
“As we realised that we were stumbling<br />
technically, we knew that we had to<br />
build up a stronger technical side –<br />
build up a stronger department – and it<br />
was then that we ‘ran into’ James Key,”<br />
Tost explained. “He was our desired<br />
candidate and we had to hurry up as he<br />
was about to sign with another team.<br />
He then settled for us.”<br />
Key arrived in September and<br />
confessed to being pleasantly surprised<br />
by what he encountered. “What I<br />
found exceeded my expectations: it<br />
is not really clear from the outside<br />
how the size of the team has grown<br />
significantly over the past years and<br />
the level of facilities has increased<br />
72 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
and improved accordingly,” he<br />
said. “For example, the new carbon<br />
manufacturing facility just completed<br />
in Faenza is state of the art and<br />
would be the envy of many, given<br />
the high standard to which it’s been<br />
built and specified.”<br />
Evenly matched<br />
While the team has been on<br />
something of a mission to become<br />
as independent as possible from Red<br />
Bull Racing, its big brother, there is<br />
no denying the ultimate reason for<br />
its existence. Devised initially as an<br />
outlet for the best graduates from Red<br />
Bull’s young driver programme, it<br />
has stuttered somewhat in that regard<br />
in recent years after the immediate<br />
success of Sebastian Vettel, who<br />
passed through in 2008 on his<br />
way to Red Bull Racing and world<br />
championship glory. Vettel’s rise, in<br />
the eyes of Red Bull’s management<br />
and notably Marko, was proof that<br />
the model worked but the German’s<br />
subsequent achievements have<br />
certainly caused trouble for more<br />
recent Toro Rosso drivers. The clinical<br />
dispatching of Jaime Alguesuari and<br />
Sebastian Buemi at the end of 2011<br />
was a case in point. It did, however,<br />
pave the way for two new talented<br />
youngsters to have their shot. Daniel<br />
Ricciardo, fresh from half a season at<br />
HRT in 2011, and Jean-Eric Vergne<br />
both performed solidly in 2012,<br />
with the Frenchman outscoring the<br />
Australian by 16 points to 10 over<br />
the 20 races. In qualifying it was a<br />
different story, with Ricciardo ahead<br />
on Saturdays 15 times to Vergne’s<br />
five; indeed, Vergne was eliminated<br />
eight times after the first session of<br />
qualifying. They are a close match but<br />
neither has shown Red Bull yet that he<br />
is worth a promotion to the Red Bull<br />
Racing team in place of Mark Webber,<br />
which would seem to be the ultimate<br />
prize on offer.<br />
Both men have been retained at<br />
Toro Rosso for next year and that was<br />
ultimately no surprise, despite Toro<br />
Rosso’s recent record when it comes<br />
to switching drivers. “I was always<br />
prepared to have them for two years,<br />
because Red Bull wouldn’t have them<br />
in the first place had they not shown a<br />
learning curve,” Tost said. “Both have<br />
won championships in lower series, so<br />
the pace gene is there.”<br />
There was also a hint of a warning,<br />
however: “How they will really<br />
develop in Formula One we will see at<br />
the end of <strong>2013</strong>.”<br />
BLACK BOOK <strong>2013</strong> l 73
Toro Rosso team principal<br />
Franz Tost admitted in<br />
November that he was “not<br />
entirely satisfied” with the<br />
team’s performance in 2012<br />
after it struggled to make<br />
any sort of impression in<br />
the midfield battle<br />
<strong>2013</strong>: Business<br />
According to team principal Tost,<br />
there is a simple aim for Toro Rosso in<br />
<strong>2013</strong>. “We have set ourselves a target<br />
of finishing sixth in the constructors’<br />
championship,” he said as the team<br />
unveiled its STR8 in Spain early in<br />
February. Toro Rosso is now in its<br />
eighth year and, apart from the obvious<br />
highlight of Sebastian Vettel’s victory<br />
at Monza in 2008, has settled as a<br />
rather quiet member of the midfield.<br />
Behind the scenes, the team has been<br />
working hard at improving itself and<br />
has become a far more independent<br />
proposition than its early years, even<br />
if the bulk of its funding still comes<br />
directly from Red Bull.<br />
There have been significant changes<br />
at the team’s Faenza base in Italy.<br />
“There is something of a new look<br />
to our team,” said Tost. “In terms<br />
of the Faenza facility itself, our<br />
newest building, known as STR3, is<br />
now fully operational and home to<br />
our composites department, which<br />
is equipped with the very latest<br />
technology and, more importantly,<br />
staffed with highly qualified people.<br />
Being able to produce more and more<br />
of our car in-house is a great asset as it<br />
gives us total control over quality and<br />
deadlines, which is vital if we want<br />
to move up the order in the pit-lane.<br />
There is more to come, with work on<br />
another new building due to begin<br />
in the second quarter of this year for<br />
completion in 2014. It will be the hub<br />
of our operation, providing new offices<br />
and a home for our engineers and<br />
designers who are currently working<br />
out of a rather cramped facility.<br />
The building will also house the car<br />
assembly and preparation area, as well<br />
as the quality control department, the<br />
machine shop and stores.”<br />
It is a major investment fuelled<br />
ultimately by Dietrich Mateschitz,<br />
although the Austrian-Italian outfit has<br />
succeeded in attracting and retaining<br />
its own small band of corporate<br />
partners over the last three years. Nova<br />
Chemicals, Falcon Private Bank and<br />
Spanish energy firm Cepsa are all on<br />
board again, having renewed deals<br />
covering the <strong>2013</strong> season in January<br />
and February.<br />
For the seventh year in a row Toro<br />
Rosso will use Ferrari engines, although<br />
74 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
James Key has arrived<br />
from Sauber to lead<br />
production of the STR8,<br />
with a remit to iron out<br />
the weight distribution<br />
and development<br />
issues that blighted last<br />
year’s car<br />
the team has openly admitted it is<br />
working to secure a supply of Renault’s<br />
new V6 turbo for next season, which<br />
would prove advantageous as the French<br />
manufacturer is a long-term supplier and<br />
technical partner of Red Bull Racing.<br />
Ultimately, however, the team’s<br />
primary purpose remains a potential<br />
proving ground for youngsters funded<br />
through the junior formulae by Red<br />
Bull. In that respect, all eyes are on<br />
Daniel Ricciardo and Jean-Eric Vergne,<br />
retained this year, to prove they have<br />
what it takes to follow the Vettel route<br />
to Red Bull Racing.<br />
<strong>2013</strong>: Sporting<br />
Toro Rosso has been quietly<br />
revamping for some time now and<br />
its new car, the STR8, is the fruit of<br />
the labour of a technical team with<br />
a new structure and some new faces.<br />
Chief designer Luca Furbatto joined<br />
in December 2011 and spent last<br />
year learning the ways of the team<br />
whilst developing the STR8. James<br />
Key, formerly of Sauber, started work<br />
as technical director in September of<br />
last year, while over the winter a new<br />
vehicle performance group, led by<br />
chief engineer Laurent Mekies, has<br />
been created to look for improvements<br />
in areas such as data analysis. Key,<br />
in particular, is highly rated and<br />
should bring a calm authority to<br />
technical matters, aided by new<br />
recruit Steve Nielsen.<br />
The team splits its work between its<br />
expanding design and manufacturing<br />
base in Faenza and a wind tunnel in<br />
the British town of Bicester, with a<br />
dedicated staff based in the UK to<br />
carry out aerodynamic work. One of<br />
Key’s biggest priorities has been to<br />
improve communications between the<br />
two bases. “That is fundamental to<br />
what we do: a front wing will take the<br />
same amount of time to design and<br />
build for a given cost, but it could be<br />
worth one tenth of a second or four<br />
tenths of a second,” he said. “It’s those<br />
four tenths that that count, so if you<br />
squeeze the timing here in Faenza and<br />
allow more time on the development<br />
side, then ultimately it should result<br />
in a better performance in the longer<br />
term. Although there was already<br />
an awareness of that, it’s been a case<br />
of pushing that idea a bit more,<br />
BLACK BOOK <strong>2013</strong> l 75
Toro Rosso<br />
* Cash component to deal<br />
Sponsor Total value Contract Start Contract End Status Sector<br />
Red Bull US$50m* November 2005 Ongoing Owner Beverages<br />
Falcon Private Bank US$3m* May 2011 December 2012 Team Partner Financial<br />
Cepsa US$5m* September 2011 December 2012 Team Partner Oil/Fuel<br />
Nova Chemicals US$3m* June 2011 December 2012 Team Partner Other<br />
Hangar-7 US$0.2m January 2006 Ongoing Team Partner Other<br />
Usag US$0.5m January 2008 Undisclosed Team Partner Automotive<br />
Volkswagen Italy US$0.3m January 2006 Undisclosed Team Partner Automotive<br />
Siemens US$1m January 2010 Undisclosed Team Partner Technology<br />
OMP US$0.2m January 2010 Undisclosed Team Partner Automotive<br />
CD-Adapco US$0.2m January <strong>2013</strong> Undisclosed Team Partner Technology<br />
Red Bull Mobile US$0.2m January 2011 Ongoing Team Partner Telecoms<br />
App Tech US$0.1m January <strong>2013</strong> Undisclosed Team Partner Automotive<br />
Del Conca US$0.1m January <strong>2013</strong> Undisclosed Team Partner Other<br />
Duravit US$0.1m January <strong>2013</strong> Undisclosed Team Partner Other<br />
Hansgrohe US$0.1m January <strong>2013</strong> Undisclosed Team Partner Other<br />
Other Income -<br />
FOM TV US$48.5m January 2009 December 2012 TV monies -<br />
Total<br />
US$112.5m<br />
CEPSA<br />
US $5m<br />
RED BULL<br />
US $50m<br />
<strong>NO</strong>VA CHEMICALS<br />
US $3m<br />
FALCON PRIVATE BANK<br />
US $3m<br />
tightening the deadlines and stressing<br />
the fact we must give as much time<br />
as possible to aero. With the CFD<br />
department based in Faenza, trying<br />
to ensure that the communications<br />
are as slick as they can be is also an<br />
important priority.”<br />
Furbatto sums it up thus: “12<br />
months ago, when work came<br />
through from Bicester, engineers<br />
in Faenza felt on the receiving end<br />
of something that was designed<br />
elsewhere; now it really, really feels<br />
like a co-design from different<br />
departments within the same team,<br />
which is encouraging for the future,<br />
both short and long-term.”<br />
The team’s broad-brush aim for the<br />
new car is for that it will prove easier<br />
to develop than its predecessor, which<br />
suffered from weight distribution and<br />
suspension layout issues and difficulties<br />
in adapting the distinctive sidepods.<br />
The team is also evolving from an<br />
operational standpoint, discovering<br />
last year that the most efficient way to<br />
run a 20-race season (19 in <strong>2013</strong>) is to<br />
76 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
With their route to the<br />
Red Bull senior team<br />
seemingly blocked,<br />
Vergne and Ricciardo<br />
will have to do their<br />
best to make Toro<br />
Rosso as competitive<br />
as possible this year<br />
have 80 per cent of the team present at<br />
100 per cent of the races and the rest<br />
rotating to avoid burnout.<br />
As far as the driver line-up is<br />
concerned, Vergne and Ricciardo are<br />
under no illusions that a step up in<br />
performance is required this year:<br />
Toro Rosso’s patience with drivers is<br />
notoriously thin and management has<br />
a habit of replacing drivers mid-season<br />
should they not been deemed to be at<br />
the required level. In particular, Red<br />
Bull has Antonio Felix da Costa, a<br />
Portuguese 21-year-old rated highly<br />
by all who have seen him race, already<br />
waiting in the wings. Tost, who has a<br />
no-nonsense style of management, is<br />
clear about what the team requires of<br />
Ricciardo and Vergne.<br />
“Naturally, we will be expecting<br />
more from them this year as they<br />
both tackle their second full season<br />
of Formula One,” he said. “However,<br />
we are well aware it is up to us to<br />
provide them with a car that’s capable<br />
of allowing them to show their<br />
undoubted talent.”<br />
BLACK BOOK <strong>2013</strong> l 77
Caterham<br />
Caterham ensured a<br />
bigger chunk of central<br />
Formula One revenues by<br />
taking tenth place in the<br />
constructors’ championship<br />
for a third year in a row<br />
in 2012, but will still<br />
be frustrated by its own<br />
sluggish development<br />
2012 in review: tenth - just<br />
Caterham may have scraped into<br />
tenth place in the constructors’<br />
championships in the last few laps<br />
of the final race of the year, ensuring<br />
it will receive a far greater slice of<br />
Formula One’s central revenues again,<br />
but 2012 was still a very disappointing<br />
year for Tony Fernandes’ team.<br />
Vitaly Petrov’s 11th place finish at<br />
Interlagos, achieved when he passed<br />
Charles Pic’s Marussia, was the<br />
difference between tenth and 11th in<br />
the championship, but given the way<br />
Caterham had talked up the season the<br />
team should have been well clear of its<br />
Russian-owned rival by that point.<br />
Caterham ended the year as far away<br />
from the midfield as ever, which was<br />
hugely disappointing given 2012 was a<br />
season in which it began a new engine<br />
partnership with Renault, had KERS<br />
at its disposal and fielded two drivers,<br />
in Petrov and Heikki Kovalainen, who<br />
were far from the worst on the grid.<br />
Three seasons into the Caterham<br />
project – the team operated as Lotus<br />
in 2010 and 2011 before Fernandes<br />
opted to buy Caterham and try to<br />
develop that brand as a road car<br />
production business – and the team<br />
has come nowhere near to scoring<br />
a point, even if it has claimed<br />
the lucrative tenth place in the<br />
championship, ahead of its rivals who<br />
also first entered the sport in 2010,<br />
three years running.<br />
With Fernandes increasingly<br />
diverted by his other projects in<br />
aviation and, more recently, in soccer,<br />
and the race team now part of a<br />
broadening Caterham brand, a new<br />
management team was assembled<br />
towards the end of the season. With<br />
the capable Riad Asmat promoted to<br />
look after the Caterham Group as a<br />
whole, the 35-year old-Frenchman<br />
Cyril Abiteboul was appointed to<br />
run the team. Abiteboul was formally<br />
appointed as team principal at the end<br />
of the year once his duties as deputy<br />
managing director at Renault Sport<br />
had been completed.<br />
Mid-season upheaval<br />
Caterham also had to contend with<br />
some mid-season upheaval, leaving its<br />
original premises in Hignham for a new<br />
78 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Running out of steam<br />
base in another UK town, Leafield in<br />
Oxfordshire. On the technical front,<br />
John Iley and Mark Smith now lead the<br />
team, Smith as technical director and<br />
former Ferrari man Iley as performance<br />
director. It is a solid line-up, which will<br />
probably start to bear real fruit in <strong>2013</strong>.<br />
Although he only joined in<br />
September, Abiteboul summed up<br />
Caterham’s season as he saw it from his<br />
position as a Renault Sport executive in<br />
an interview with the official Formula<br />
One website in December. “The end<br />
of the [last] race in Brazil meant two<br />
things to me: firstly, it means we are<br />
on a better financial footing than if<br />
we had finished 11th,” he said. “The<br />
benefits of that are obvious and it<br />
means we have not had to compromise<br />
our <strong>2013</strong> or future plans. The money<br />
is obviously important, but what<br />
finishing tenth also meant to me was<br />
that it showed our team what it felt<br />
like to be part of the show, and that’s<br />
something that had been missing for<br />
most of the 2012 season.”<br />
Abiteboul added: “We started out<br />
with a good gap to the teams behind,<br />
and with work to do to catch the teams<br />
ahead. At the European Grand Prix in<br />
Valencia we were as close as we’ve ever<br />
been to truly racing one of the teams<br />
ahead, but since then we have been<br />
almost racing on our own. That means<br />
the boys in the garage and everyone<br />
back at the factory has been missing<br />
the adrenaline rush of real competition,<br />
missing the emotional highs of success.<br />
The power those emotions have to<br />
inspire is undeniable.”<br />
The lack of motivation appeared to<br />
become an issue for Kovalainen, who<br />
has been the team’s go-to driver since<br />
its debut in 2010. After two seasons<br />
of apparently boundless enthusiasm<br />
in 2010 and 2011, it looked for all<br />
the world as if the Finn just ran out of<br />
energy in the latter half of 2012. Gone<br />
was the optimism of the first two years<br />
as it became abundantly clear that<br />
the team was moving no closer to the<br />
midfield. Indeed, Kovalainen’s mood<br />
increasingly resembled that of Jarno<br />
Trulli, the other driver in what was Team<br />
Lotus in 2010 and 2011 – downbeat at<br />
best. As the year ended, Kovalainen was<br />
openly questioning whether he would<br />
remain with Caterham for a fourth year.<br />
He wouldn’t. It was no great surprise,<br />
given Caterham’s increasing desire for<br />
drivers with a budget, but certainly a<br />
great shame that 2012 may well have<br />
been the last year in Formula One for a<br />
talented and approachable driver.<br />
Trulli’s replacement, Petrov, brought<br />
with him a bucket full of roubles but<br />
also some raw talent from Renault/<br />
Lotus. Like Trulli and Kovalainen<br />
before him, he had to adjust to a life<br />
where podiums were a pipedream,<br />
but did so solidly and provided good<br />
competition for his teammate. Like<br />
Kovalainen, however, his longer-term<br />
future in the sport remains unclear.<br />
Financially, the importance of<br />
the tenth-place millions cannot be<br />
underestimated, although Caterham<br />
– largely through Fernandes’ enviable<br />
business network – was able to add new<br />
partners in 2012. In August, an official<br />
partnership was announced with EADS,<br />
the aerospace and defence group, which<br />
had its roots well beyond the Formula<br />
One team. The deal also includes the<br />
Caterham road car division. Petrov’s<br />
presence also resulted in deals with<br />
Russian Helicopters and petrochemical<br />
company Sibur. Both were to exit the<br />
team, however, with the driver.<br />
BLACK BOOK <strong>2013</strong> l 79
Frenchman Charles Pic<br />
(left) has been poached<br />
from Marussia after a solid<br />
season in 2012 and has<br />
agreed a multi-year deal.<br />
He will be joined by last<br />
year’s Caterham reserve<br />
driver Giedo van der Garde<br />
(right) in an all-new team<br />
for <strong>2013</strong>.<br />
<strong>2013</strong>: Business<br />
After finishing up at Renault Sport,<br />
where he had been completing his<br />
duties until the end of 2012, Cyril<br />
Abiteboul started work full-time at<br />
Caterham in January. The Frenchman<br />
has plenty to do to try and haul a team<br />
that had a disappointing 2012 – but<br />
got away with it, financially at least,<br />
by the skin of its teeth – into the<br />
midfield battle. He will be largely left<br />
to it by Tony Fernandes, the team’s<br />
founder. Fernandes has stepped up<br />
to become co-chairman of Caterham<br />
Group – which now comprises a road<br />
car division and dedicated subsidiaries<br />
Caterham Composites and Caterham<br />
Technology & Innovation as well as<br />
the Formula One operation – and also<br />
has a range of other interests around<br />
the world to keep an eye on. “I am<br />
realistic enough to know that we still<br />
have a long journey ahead of us, but<br />
the dream is steadily coming true,” the<br />
Malaysian said in February.<br />
“We have invested in the long<br />
term, not taken any shortcuts and<br />
we have everything in place to keep<br />
moving forwards.”<br />
In Abiteboul, Fernandes has<br />
appointed someone with only limited<br />
experience of Formula One team<br />
management. How he fares will be<br />
keenly watched, but short of a lottery<br />
result it is hard to envisage Caterham<br />
80 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Mark Smith, the<br />
Caterham technical<br />
director, has called the<br />
CT03 an “important<br />
milestone” in the team’s<br />
development. But with<br />
an eye on the sweeping<br />
2014 regulations, it will<br />
be an “evoloution” of<br />
the 2012 car.<br />
bettering the tenth place it achieved<br />
with a touch of fortune last season.<br />
Off the track, meanwhile, Abiteboul<br />
says Caterham is in a “healthy<br />
position”, fuelled for <strong>2013</strong> by its<br />
multi-million dollar Formula One<br />
Management funding from 2012<br />
and a large new sponsorship package<br />
from Dutch fashion house McGregor,<br />
backers of the team’s new race driver<br />
Giedo van der Garde. “We are still<br />
a small team,” Abiteboul said in<br />
February, “but our stated objective<br />
is to be the most efficient of all<br />
Formula One teams and thanks to our<br />
determination, our scalability and our<br />
processes, there is no reason we cannot<br />
achieve this in recognition of the<br />
ongoing investments our shareholders<br />
and team partners make in us.<br />
“We have partners in GE/Safran,<br />
EADS/Airbus, Dell/Intel, McGregor<br />
and Renault who are the envy of the<br />
pit-lane,” he added. “Our relationships<br />
with each of those businesses continue<br />
to develop and we are delighted that<br />
such blue-chip brands share our vision<br />
and are an integral part of the team.”<br />
Another element of stability is that<br />
Caterham is now firmly ensconced in<br />
its new home in Leafield, a move that<br />
Abiteboul calls “the last big piece of the<br />
jigsaw”. The team has the budget and<br />
the know-how to make its move into<br />
the midfield and shed its image as an<br />
also-ran. It is time to deliver.<br />
BLACK BOOK <strong>2013</strong> l 81
Caterham<br />
* Cash component to deal<br />
Sponsor Cash Contract Start Contract End Status Sector<br />
GE US$30m* June 2011 December <strong>2013</strong> Premium Partner Technology<br />
Safran US$6m* January <strong>2013</strong> Undisclosed Partner Technology<br />
Dell/Intel US$0.5m April 2011 Undisclosed Technology Partner Technology<br />
EADS/Airbus US$1m* August 2012 Undisclosed Partner Technology<br />
McGregor US$9m* January <strong>2013</strong> December <strong>2013</strong> Partner Fashion<br />
Beelen.nl US$1m* January <strong>2013</strong> December <strong>2013</strong> Partner Other<br />
Tune Group US$5m* January 2010 Ongoing Partner Other<br />
Naza Group US$5m* January 2010 Ongoing Partner Other<br />
Caterham US$5m* January 2012 Ongoing Partner Automotive<br />
EQ8 US$2m* January 2011 Undisclosed Partner Beverage<br />
HPE US0.2m January 2012 Undisclosed Partner Technology<br />
CD-Adapco US$0.3m January 2012 Undisclosed Supplier Technology<br />
DuPont Refinish US$0.2m January 2012 Undisclosed Supplier Automotive<br />
Sparco US$0.2m January 2012 Undisclosed Supplier Fashion<br />
VolP Unlimited US$0.1m January 2012 Undisclosed Supplier Technology<br />
Schroth Racing US$0.2m January 2012 Undisclosed Supplier Automotive<br />
BRP US$0.1m January 2012 Undisclosed Supplier Automotive<br />
Ruroc US$0.1m May 2011 Undisclosed Supplier Automotive<br />
Linde US$0.1m January <strong>2013</strong> Undisclosed Supplier Automotive<br />
Visa US$0.3m March 2012 Undisclosed Supplier Other<br />
USI Italia US$0.1m January <strong>2013</strong> Undisclosed Supplier Automotive<br />
Rodac US$0.1m January 2012 Undisclosed Supplier Automotive<br />
Other Income<br />
FOM TV US$45.5m January 2010 December 2012 TV monies -<br />
Total<br />
US$112m<br />
<strong>2013</strong>: Sporting<br />
With Vitaly Petrov and Heikki<br />
Kovalainen jettisoned, there is<br />
a considerably younger and less<br />
experienced look to Caterham’s <strong>2013</strong><br />
driver line-up. Frenchman Charles Pic<br />
has been signed to a multi-year contract<br />
after a solid first year in Formula One<br />
with the team’s arch-rival Marussia,<br />
while Giedo van der Garde steps up<br />
from reserve to race driver and will<br />
make his Grand Prix debut in Australia.<br />
There are high hopes for Pic, who<br />
is backed by former Formula One<br />
driver and 1996 Monaco Grand Prix<br />
winner Olivier Panis, but to further<br />
burnish his reputation he needs to<br />
put daylight between himself and<br />
van der Garde. By modern standards,<br />
the latter is making his Formula One<br />
debut late. He has been on the fringes<br />
for some years, getting the odd testing<br />
run here and there, and raced last<br />
year in GP2, finishing sixth overall. It<br />
is no secret that he is backed heavily<br />
by the McGregor fashion brand and<br />
its multi-millionaire investor Marcel<br />
Broekhoorn, who is also van der<br />
Garde’s father-in-law. At 27, Van der<br />
Garde is more experienced than most<br />
Formula One debutants but anything<br />
other than respectable performances<br />
would be a major surprise.<br />
“Charles and Giedo are both<br />
young and dynamic and we expect that<br />
their enthusiasm for the sport<br />
and the team will be fuelling our<br />
growth,” Abiteboul said of his new<br />
pairing. “Additionally, they provide<br />
clear proof of our dedication to<br />
developing young driver talent and<br />
now, any aspiring driver who dreams<br />
of Formula One can see there is a clear<br />
route to the Formula One grid under<br />
82 l BLACK BOOK <strong>2013</strong>
Cyril Abiteboul will replace<br />
owner Tony Fernandes as<br />
team principal in <strong>2013</strong> after<br />
joining from Renault Sport<br />
and will oversee an outfit<br />
still lacking commercial<br />
clout and thankful for the<br />
bonus of additional central<br />
revenue after last year’s<br />
tenth place<br />
EADS/AIRBUS<br />
US $1m<br />
MCGREGOR<br />
US $9m<br />
GE<br />
US $30m<br />
DELL/INTEL<br />
US $0.5m<br />
the guidance of the Caterham Driver<br />
Development Program.”<br />
Whether Pic and van der Garde<br />
will be racing anyone but themselves<br />
depends on what technical director<br />
Mark Smith has produced in the<br />
CT03: a car Smith described as an<br />
“important milestone” in Caterham’s<br />
development, and the first chassis<br />
produced in Leafield. “We decided<br />
that CT03 would be an evolution<br />
of CT01 rather than a complete<br />
redesign,” Smith said, “allowing us<br />
to focus our resources on developing<br />
areas of last year’s package where<br />
opportunities would give us the best<br />
return, while also beginning work on<br />
the 2014 package.”<br />
Smith has also overseen the<br />
installation of a ‘driver in the loop’<br />
simulator in Leafield, a piece of kit<br />
which he believes will be worth its<br />
weight in gold to Caterham and moves<br />
the team on to the same playing field as<br />
its better-funded rivals. “It constitutes<br />
another example of the long-term<br />
plans we are activating that will help us<br />
continue to grow and develop into the<br />
team we know we can become,” he said.<br />
Already, however, there is an eye<br />
on 2014. “All the teams will be racing<br />
in <strong>2013</strong> with one eye on next year<br />
when the new rules may present<br />
opportunities to make significant gains,<br />
much greater than those available<br />
under static rules,” Smith added. In<br />
the meantime, the team is desperately<br />
hoping the CT03 can be the car to<br />
finally break its points drought.<br />
84 l BLACK BOOK <strong>2013</strong>
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Marussia<br />
Though it finished outside<br />
the top ten again in the<br />
constructors’ race and<br />
has yet to win a world<br />
championship point,<br />
Marussia will feel optimistic<br />
about the futute after a<br />
decent showing in 2012<br />
2012 in review: So close and yet so far<br />
All things considered Marussia can<br />
consider itself mightily unfortunate not<br />
to have taken tenth place in the world<br />
championship, a result which potentially<br />
means it will have to wait longer to<br />
unlock the potential riches on offer by<br />
Formula One Management to regular<br />
top-ten finishers. Had Caterhambound<br />
Charles Pic managed to hold<br />
off Vitaly Petrov for a few more laps in<br />
the Interlagos rain, it would have been<br />
Marussia, not Caterham, celebrating<br />
after the race. There was no suggestion<br />
of foul play from Pic, a man whose<br />
debut season in the sport was generally<br />
adjudged to have been good, despite<br />
the lack of opportunity to show it at the<br />
back of the grid, but it was a great shame<br />
for the entire team. In many ways, in<br />
2012 Marussia outperformed Caterham<br />
– with whom it has been locked in an<br />
ongoing duel since the two debuted<br />
together in 2010 – operating on a<br />
smaller budget than its immediate rival,<br />
with an increasingly outdated Cosworth<br />
engine and without KERS.<br />
The team also had little or no<br />
pre-season testing after an initial<br />
failed mandatory crash test scuppered<br />
preparations for the campaign ahead.<br />
“We had a tough start to the year and<br />
we were unable to compete very much<br />
at all in the way of pre-season testing,”<br />
reflected John Booth, the Yorkshireman<br />
who has won plaudits for the way he has<br />
steered a new team through its difficult<br />
Formula One baptism since 2010.<br />
“Notwithstanding a difficult<br />
debut for the MR01, we were able<br />
to hold on to tenth place in the<br />
constructors’ championship for the<br />
first five races, before it slipped from<br />
our grasp in Monaco. By the midpoint<br />
of the season, we had caught<br />
up with ourselves in terms of our<br />
development strategy and the upgrades<br />
86 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
we introduced at Silverstone were the<br />
first iteration of wind tunnel-tested<br />
components with the MR01. We never<br />
really looked back from that point and<br />
with each new race we were making<br />
steps forward – large and small.”<br />
A new name<br />
If Marussia never looked like seriously<br />
challenging the midfield runners, there<br />
was still enough evidence to suggest<br />
that it was finally stabilising after two<br />
tumultuous years of technical shake-ups<br />
and an ownership change. The team<br />
was renamed Marussia for 2012, in<br />
deference to its new owners from Russia<br />
– Marussia owns a 70.6 per cent stake,<br />
with the remaining 29.4 per cent in the<br />
hands of Lloyds Development Group,<br />
the private equity arm of the part UK<br />
government-owned bank, which has<br />
been involved in the team since it began.<br />
The luxury, niche Marussia car brand<br />
moved from sponsor to shareholder over<br />
the winter of 2010 but has remained<br />
very much in the background, save for<br />
the appointment of a Marussia man,<br />
Andy Webb, as team chief executive.<br />
Webb forms part of a management<br />
triumvirate along with Booth and<br />
president Graeme Lowdon.<br />
“In terms of the operational<br />
detail the team is staffed with a<br />
lot of people with Formula One<br />
experience – team managers, our chief<br />
engineer Dave Greenwood has won<br />
world championships with previous<br />
teams,” Lowdon told SportsPro in<br />
February <strong>2013</strong> as he sought to explain<br />
Marussia’s involvement.<br />
“There’s a lot of very good, very<br />
experienced people throughout the<br />
team who enjoy working in the small<br />
team environment. Collectively within<br />
the team we’re left to manage that<br />
kind of thing at the operational level.<br />
Certainly, some of the more strategic<br />
guidance comes from Marussia.”<br />
Despite Marussia’s presence as<br />
majority owners, the team is still run<br />
on a comparative shoestring. According<br />
to figures released in 2012 the team<br />
made a UK£49 million loss during<br />
2011, with turnover declining five per<br />
cent to UK£28.5 million from the first<br />
year, 2010. At the same time, costs<br />
rose 11 per cent to UK£70 million.<br />
The figures place Marussia’s keenness<br />
to finish tenth and not 11th in the<br />
championship in a new light.<br />
Sensible progress<br />
Given the lack of resource, Marussia and<br />
its drivers, Pic and German Timo Glock,<br />
put up a decent fight throughout the<br />
year. Booth, speaking on the last day of<br />
the season in November, was cheered by<br />
the progress the team has made since the<br />
start of the year. “Much has been made<br />
of closing the gap to Caterham, but<br />
at the same time we have reduced the<br />
delta to the midfield and the front of the<br />
field,” he said.<br />
“For example, in Australia the gap<br />
between our own fastest lap and the<br />
winner’s fastest lap was 4.5 per cent,<br />
whilst in the closing stages of the<br />
season we have reduced that to 2.5 per<br />
cent – again, without KERS. So if we<br />
reflect on our big picture, it is even<br />
more encouraging than may have<br />
been apparent.”<br />
Glock, the team leader for a third<br />
season, had another solid year during<br />
which his only real competition was<br />
Heikki Kovalainen at Caterham. That<br />
said, Pic ran Glock closer than either<br />
Lucas di Grassi or Jerome D’Ambrosio,<br />
the German’s previous two teammates,<br />
and has been rewarded with a multiyear<br />
deal at Caterham.<br />
Glock, meanwhile, had been<br />
committed to a fourth year with the<br />
team but in January the 30-yearold<br />
left by mutual consent. He<br />
subsequently signed for BMW, where<br />
he will race in the <strong>2013</strong> DTM series.<br />
“Timo has made a very significant<br />
contribution to our team over the past<br />
three seasons,” Booth said. “He is a<br />
fantastic driver and he has been a very<br />
popular member of the team.<br />
“Our team was founded on the<br />
principle of benefiting from proven<br />
experience whilst also providing<br />
opportunities for young emerging<br />
talent to progress to the pinnacle of<br />
motorsport. Thus far, this philosophy<br />
has also been reflected in our<br />
commercial model. The ongoing<br />
challenges facing the industry mean<br />
that we have had to take steps to secure<br />
our long-term future. Tough economic<br />
conditions prevail and the commercial<br />
landscape is difficult for everyone,<br />
Formula One teams included.”<br />
The popular Timo<br />
Glock again provided<br />
level-headed leadership<br />
to Marussia in 2012 and<br />
will leave a considerable<br />
gap after leaving for the<br />
DTM series this year<br />
BLACK BOOK <strong>2013</strong> l 87
As the season began<br />
Marussia was the only<br />
team on the Formula One<br />
grid that had yet to sign<br />
a bilateral commercial<br />
agreement with Formula<br />
One Group, meaning it will<br />
have to wait to see what<br />
the full financial impact of<br />
last year’s 11th-place finish<br />
will be<br />
<strong>2013</strong>: Business<br />
Despite the reality bite of another<br />
11th-place finish in the world<br />
championship and a split with its<br />
lead driver, <strong>2013</strong> shows all the signs<br />
of being the best season in Marussia’s<br />
short history. Continuing the solid<br />
progress of last year is the key to a<br />
more substantial challenge this year<br />
and the team made a good start by<br />
getting its new car ready in time for<br />
the first pre-season test at the start<br />
of February. That in itself was a<br />
significant improvement on 2012.<br />
Contrary to widespread belief,<br />
the team’s financial position was<br />
unaffected by losing out on tenth<br />
place to Caterham at the death in<br />
2012. “It certainly had implications<br />
for some other teams, because of the<br />
way the numbers are calculated,”<br />
Lowdon explained, “but it didn’t<br />
change the way we approach <strong>2013</strong>.”<br />
Rather than missing out on millions<br />
of dollars, Marussia simply missed an<br />
opportunity to record a tenth-place<br />
finish which, according to the terms<br />
of the Concorde Agreement which<br />
expired in December, would have<br />
moved them closer to ‘Column One<br />
team’ status. Column One teams are<br />
eligible for additional central revenues<br />
from the sport but a team is required<br />
to finish tenth two years in a row to<br />
qualify, hence Caterham’s celebrations<br />
at achieving a third successive tenth<br />
place. However, with a new Concorde<br />
Agreement yet to be ratified, there is a<br />
possibility the revenue sharing system<br />
may change anyway.<br />
As January turned to February<br />
Marussia was the only team not to<br />
have a signed bilateral agreement in<br />
place with the sport’s commercial rights<br />
88 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Designed by former<br />
Benetton and Renault<br />
engineer Pat Symonds,<br />
returning after his<br />
‘crashgate’ ban, the<br />
MR02 has been built<br />
with an emphasis on<br />
aerodynamics and<br />
incorporates the KERS<br />
system that last year’s<br />
car lacked<br />
holder, Formula One Group. While far<br />
from an ideal situation, Lowdon says<br />
the day-to-day running of the team is<br />
unaffected and its world championship<br />
entry secure.<br />
“Where it would make a difference<br />
is if we made an assumption that we<br />
wanted to have various benefits,” he<br />
said, “but I think the important thing<br />
for us is to be very prudent about<br />
how we do our planning. In terms of<br />
our planning and budget we just have<br />
to base that around what’s actually<br />
happening. It’s part and parcel of<br />
everything else. We don’t start each<br />
day with that being the prime topic.<br />
There are commercial sponsorship deals<br />
that we are discussing at the moment<br />
which could provide significantly more<br />
revenue, for example. It’s in the mix<br />
with all the other factors we have to<br />
deal with as a business but it’s not the<br />
overriding thing.”<br />
The team’s new car was unveiled in<br />
Jerez at the start of February and will<br />
take part in a full testing programme.<br />
Although new drivers Max Chilton<br />
and Jules Bianchi – a late replacement<br />
for Luiz Razia after a key sponsor of<br />
the Brazilian withdrew – are believed<br />
to have both brought funding to<br />
the team in return for their seats,<br />
sponsorship logos on the car remain<br />
sparse. One new partner of note is<br />
business management software and<br />
services streamliner Sage. Lowdon<br />
said, however, that the team is a more<br />
solid commercial proposition than<br />
ever, going into a season in which<br />
further progress is a must. “One of the<br />
advantages that we do have as a smaller<br />
team is that we’re very, very flexible<br />
and can come up with some quite<br />
innovative solutions,” he told SportsPro.<br />
“We’ve got a very good network of<br />
BLACK BOOK <strong>2013</strong> l 89
President Graeme Lowdon<br />
(left) says Marussia’s<br />
challenger status allows<br />
it to be flexible in<br />
accommodating partners<br />
but few doubt that the<br />
signings of drivers Max<br />
Chilton (right) and Jules<br />
Bianchi have a heavy<br />
financial imperative<br />
business-to-business attributes through<br />
our shareholdings with Marussia and<br />
Lloyds Banking Group and so we play<br />
to our strengths.”<br />
<strong>2013</strong>: Sporting<br />
An all-new driver line-up will drive a<br />
well-tested car this season. The MR02<br />
was launched prior to the first test<br />
session of the year and is the work,<br />
primarily, of technical director Pat<br />
Symonds. The former director of<br />
engineering and championship<br />
winner at Benetton and Renault<br />
is returning to the spotlight after<br />
spending the last couple of seasons<br />
as a remote consultant to Marussia<br />
while he served out his ban from<br />
the Formula One paddock for his<br />
involvement in the Renault ‘crashgate’<br />
affair of 2009. He has prepared a<br />
good-looking car, which will certainly<br />
benefit from pre-season testing miles.<br />
“The incremental steps we were taking<br />
in the latter half of last season gave us<br />
the confidence not only to fight hard<br />
for tenth place in the constructors’<br />
championship, but to feel encouraged<br />
by our overall design direction,” said<br />
team principal John Booth as the new<br />
car was launched.<br />
“We are confident that the MR02 is<br />
the product of evolving elements of last<br />
year’s package whilst integrating the<br />
new KERS system.”<br />
The team says that a lack of KERS<br />
was a ‘strategic omission’ but its<br />
addition this year could be the key<br />
to challenging Caterham for tenth<br />
place, its first target. “We opted to<br />
place the emphasis on aerodynamics,”<br />
added Booth, “so that when we were<br />
in a position to bring the system to<br />
the car, we already had the strongest<br />
possible basis and its integration would<br />
be relatively straightforward. Thus far,<br />
this has certainly been the case, as our<br />
trackside engineering team have spent<br />
the winter refining their tools and<br />
preparing for the addition of<br />
fKERS to<br />
ensure we can hit the ground running.”<br />
While the car may be an<br />
improvement, it is undeniable that<br />
90 l BLACK BOOK <strong>2013</strong>
1Team by Team <strong>2013</strong><br />
Team by Team <strong>2013</strong><br />
Marussia<br />
* Cash component to deal<br />
Sponsor Total Contract Start Contract End Status Sector<br />
Marussia US$45m* January 2010 Ongoing Partner Car manufacturer<br />
Avelo US$2m* January <strong>2013</strong> Undisclosed Partner Technology<br />
Sage ERP X3 US$$1.5m* January 2012 Undisclosed Partner Technology<br />
Bifold US$0.5m* January <strong>2013</strong> Undisclosed Partner Automotive<br />
Free Radio US$0.1m January <strong>2013</strong> Undisclosed Partner Other<br />
Armin Strom US$3m* January 2011 Undisclosed Partner Watch<br />
Qnet US$2m* November 2010 Undisclosed Partner Other<br />
Ansys US$0.2m January <strong>2013</strong> Undisclosed Supplier Technology<br />
CarPlan US$0.5m February 2012 December <strong>2013</strong> Supplier Automotive<br />
JCC Lighting US$0.1m March 2012 December 2012 Supplier Other<br />
Lincoln Electric US$0.1m January 2012 Undisclosed Supplier Technology<br />
PerkinElmer US$0.2m January 2011 Undisclosed Supplier Technology<br />
RTR US$0.1m January 2011 Undisclosed Supplier Automotive<br />
Servotest US$0.1m Ferbruary 2010 Undisclosed Supplier Technology<br />
Sparco US$0.1m January 2012 Undisclosed Supplier Automotive<br />
Other Income<br />
FOM TV US$10m January 2010 November 2012 TV monies -<br />
Total<br />
US$65.5m<br />
the team will be weakened by the<br />
absence of the talented Timo Glock<br />
this year. The combination of Bianchi<br />
and Chilton, the former second in<br />
last year’s Formula Renault 3.5 series,<br />
the latter fourth in GP2, is youthful<br />
and likely to be a touch exuberant at<br />
times in <strong>2013</strong>. Whether they can guide<br />
Marussia technically as Glock did<br />
remains to be seen.<br />
23-year old Bianchi was in<br />
contention for a Force India drive<br />
for much of the close season before<br />
Marussia came calling at the end of<br />
winter testing. The Frenchman has<br />
strong links to Ferrari and could well<br />
be the team’s key to unlocking a new<br />
engine supply deal at Maranello.<br />
Chilton’s father, meanwhile, is a vice<br />
chairman of insurance giant Aon and<br />
steered his son into a reserve driver role<br />
last season.<br />
Formula One is a step into the<br />
unknown for both but they have a<br />
rare opportunity to make a major<br />
impression in what should be<br />
Marussia’s best car yet.<br />
QNET<br />
US $2m<br />
MARUSSIA<br />
US $45m<br />
CAR PLAN<br />
US $0.5m<br />
ARMIN STROM<br />
US $3m<br />
BLACK BOOK <strong>2013</strong> l 91
Section Two<br />
Circuits <strong>2013</strong><br />
2<br />
Australia: 94<br />
Malaysia: 98<br />
China: 100<br />
Bahrain: 102<br />
Spain: 106<br />
Monaco: 108<br />
Canada: 112<br />
Britain: 116<br />
Germany: 118<br />
Hungary: 122<br />
Belgium: 126<br />
Italy: 128<br />
Singapore: 130<br />
Korea: 132<br />
Japan: 134<br />
India: 136<br />
Abu Dhabi: 140<br />
USA: 144<br />
Brazil: 150<br />
Expert comment is provided by former Williams and Toro Rosso commercial<br />
chief Jim Wright and former Jordan GP marketing director Mark Gallagher
Australian Grand Prix<br />
Melbourne has hosted the<br />
Australian Grand Prix every<br />
year since 1996. Albert Park<br />
has staged the seasonopener<br />
every year except<br />
2006 and 2010.<br />
The Australian Grand Prix switched<br />
from Adelaide to Melbourne in 1996<br />
and has opened the Formula One world<br />
championship on all but two occasions<br />
since then.<br />
Albert Park, which is turned from<br />
public parkland into a Formula One<br />
circuit each year, has become a very<br />
popular start to the season.<br />
The event itself is run by the<br />
Australian Grand Prix Corporation<br />
(AGPC), which also runs the Australian<br />
MotoGP race at nearby Philip Island<br />
and is led by chief executive Andrew<br />
Westacott and chairman Ron Walker,<br />
but the bulk of the funding for the<br />
Grand Prix each March comes from the<br />
public purse.<br />
A record AUS$56.7 million of<br />
taxpayer funds, paid through the<br />
government of Victoria, were spent on<br />
staging the race last year; a combination<br />
of set-up costs in Albert Park and annual<br />
race fees payable to Formula One.<br />
Further rises are expected over the next<br />
couple of years as part of the contract for<br />
the event, which was negotiated in 2008<br />
and runs until 2015.<br />
Although the race costs far more<br />
than it makes through ticket sales and<br />
hospitality, pro-Grand Prix supporters<br />
cite the wider economic impact and<br />
the substantial brand exposure that<br />
Formula One provides for the city of<br />
AUSTRALIAN GRAND PRIX<br />
Location<br />
Albert Park, Melbourne<br />
<strong>2013</strong> date 15th-17th March<br />
<strong>2013</strong> title sponsor Rolex<br />
Contract expires 2015<br />
Melbourne. The precarious financial<br />
situation traditionally turns the event<br />
into something of a political hot potato,<br />
however, although Victoria premier<br />
Ted Bailleu remains in favour of a race<br />
which recorded its highest four-day<br />
crowd since 2005 in 2012.<br />
“The Grand Prix has been good for<br />
Melbourne, good for Victoria and<br />
94 l BLACK BOOK <strong>2013</strong>
As a temporary circuit, there<br />
are significant set-up costs<br />
for the Grand Prix around<br />
Albert Park Lake each year.<br />
The cost of the race has been<br />
questioned by politicians.<br />
good for our major events team,” Bailleu<br />
said during the 2012 Grand Prix, won<br />
by Jenson Button and watched by a race<br />
day crowd of 114,900, part of an overall<br />
attendance of 313,700.<br />
“What we have said stands... that we<br />
will look at the Grand Prix as a value<br />
for money proposition,” he added, “and<br />
we have a further three Grands Prix on<br />
the contract and that is the way we will<br />
consider it.”<br />
Along with the myriad corporate<br />
hospitality options laid on by AGPC<br />
at various points on the track – the<br />
<strong>2013</strong> event was due to feature, for the<br />
first time, an exclusive Grand<br />
Prix Breakfast with guest<br />
appearances by motorsport stars –<br />
no other Grand Prix has a support<br />
race programme and entertainment<br />
package to rival Australia’s.<br />
From a team and sponsor perspective,<br />
too, the Australian Grand Prix continues<br />
to have its place on an ever-expanding<br />
calendar. “Although Australia is a small<br />
market it’s a great place for Formula<br />
One to start off in because many<br />
multinationals have a presence there,”<br />
is how Mark Gallagher, the former<br />
marketing director at the Jordan team<br />
and general manager at Cosworth F1,<br />
puts it. “It’s an English-speaking market<br />
which means it’s very user-friendly<br />
for many multinationals to bring<br />
international guests to the race. It’s quite<br />
often a race the Asia/Pacific region of<br />
a multinational sponsor will come to<br />
because of the great atmosphere.<br />
“The infrastructure is so good in<br />
Melbourne and it’s a good transport<br />
hub. It’s a good race to start the season<br />
as a result.”<br />
Jim Wright, formerly Williams’ head<br />
of marketing, concurs. “It’s a good place<br />
to start the season, in Melbourne as a<br />
city event,” he says. “I would rate it in<br />
the top 25 or 30 per cent in terms of<br />
commercial importance.”<br />
96 l BLACK BOOK <strong>2013</strong>
Malaysian Grand Prix<br />
The Malaysian Grand Prix<br />
has been held at the<br />
Sepang International Circuit,<br />
on the far outskirts of<br />
Kuala Lumpur, every year<br />
since 1999<br />
The Malaysian Grand Prix has been a<br />
mainstay of the Formula One calendar<br />
for well over a decade now. It is an<br />
event fuelled by government money<br />
and a desire to use Formula One to put<br />
the country on the map, an ambition<br />
which, to an extent at least, has been<br />
fulfilled since the first race in 1999.<br />
“I think the race is very well bedded<br />
in as long as the government continues<br />
to see Formula One as an important<br />
calling card for the country and<br />
promoting business and tourism to<br />
Malaysia,” says Mark Gallagher.<br />
Malaysian prime minister Datuk Seri<br />
Najib Tun Razak, speaking at the 2012<br />
race, described the event as “an engine<br />
of growth in our country”, adding<br />
that some US$69 million in economic<br />
impact is generated each year.<br />
“We should promote the race not<br />
only to the local market but also to<br />
capture attention of the entire Asean<br />
region,” he added. “Leveraging on<br />
such an opportunity would increase<br />
the level of exposure that Formula<br />
One in Malaysia can give to promote<br />
the country as a destination and place<br />
to do business.”<br />
The Grand Prix takes place at the<br />
Sepang International Circuit, a state of<br />
the art venue built on the far outskirts<br />
of Kuala Lumpur specifically to host<br />
Formula One but one that is now<br />
perhaps a touch frayed around the<br />
edges after a decade of use; Sepang is<br />
also a regular stop on the MotoGP<br />
schedule and hosts a variety of other<br />
international, regional and national<br />
meetings each year.<br />
The lack of a local hero, save for<br />
a couple of brief forays from Alex<br />
Yoong some years ago, has not harmed<br />
crowds in recent years: the 2012<br />
event attracted a creditable Sunday<br />
attendance of 90,000, thanks in no<br />
small part to some of the cheapest<br />
ticket prices of the season, although<br />
organisers admitted that was some<br />
5,000 below their expectations. In all,<br />
119,960 came through the gates over<br />
98 l BLACK BOOK <strong>2013</strong>
2Circuits<br />
Circuits<br />
three days.<br />
As Jim Wright says, referring to<br />
the long-term support of firms such<br />
as Petronas: “Within Malaysia and<br />
certainly within the KL region it has<br />
become pretty well established and<br />
I think there’s decent support for<br />
Paddock Club and things like that.”<br />
Gallagher, however, offers a slightly<br />
different view. “As a race, from a team<br />
and sponsor point of view Malaysia is<br />
never heavy with guests,” he says. “It’s<br />
not a huge market for many of the<br />
companies that I’ve had experience of<br />
working with in Formula One.<br />
“I feel that until Singapore came<br />
along Malaysia ticked the box for that<br />
part of Asia and we always had some<br />
presence from sponsors at that race,”<br />
he adds. “As an event, because it’s<br />
outside KL, it definitely added to the<br />
global reach of Formula One when it<br />
came along and it continues to play an<br />
important part in doing that.”<br />
Malaysia’s contract with Formula<br />
One Management runs until 2015.<br />
At the time the latest extension<br />
was signed, local organisers came<br />
under some pressure to install costly<br />
floodlights and follow Singapore’s<br />
lead as an evening event to better<br />
suit European TV audiences. A<br />
compromise of sorts was reached in<br />
2009 with the introduction of a 4pm<br />
MALAYSIAN GRAND PRIX<br />
Location<br />
Sepang International<br />
Circuit, Kuala Lumpur<br />
<strong>2013</strong> date 22nd-24th March<br />
<strong>2013</strong> title sponsor Petronas<br />
Contract expires 2015<br />
start time. However, twice since then<br />
the race has had to be significantly<br />
delayed or shortened due to lateafternoon<br />
monsoons. The floodlight<br />
issue may yet return when the time<br />
comes for the government to reevaluate<br />
the merits of Malaysia’s largest<br />
annual sporting event.<br />
BLACK BOOK <strong>2013</strong> l 99
Chinese Grand Prix<br />
Formula One was slightly ahead of<br />
the curve in touching down in China.<br />
The country hosted its first Grand Prix<br />
in late 2004, with the sport grasping<br />
an opportunity created by Shanghai’s<br />
desire to match Beijing’s efforts to<br />
grow its international status through<br />
hosting the 2008 Olympic Games.<br />
The country’s second city created<br />
what remains a state of the art, almost<br />
spaceship-like facility – complete with<br />
a capacity of a quarter of a million.<br />
However, after nine Grands Prix<br />
China has yet to be fully enthused by<br />
Formula One, a great disappointment<br />
to the many who believed a race in<br />
the country would open up lucrative<br />
opportunities in a vast new market.<br />
China has not taken to Formula<br />
One in any significant way and the<br />
blame for that lies with both the local<br />
promoters of the event in the country<br />
and with Formula One, which has<br />
failed to tackle the issue of promoting<br />
itself there in a coordinated manner.<br />
“I think it was well founded,” says<br />
Jim Wright of the hope that existed<br />
amongst Formula One marketers<br />
ahead of the first race in Shanghai,<br />
won by Rubens Barrichello for Ferrari.<br />
“But what you need is for a central<br />
rights holder and a local promoter to<br />
be behind that. The teams can only<br />
do so much. Unfortunately neither<br />
the central rights holder nor the local<br />
promoter has done a good job in<br />
China. What do we do, collectively as<br />
Formula One, to promote ourselves in<br />
China? The answer is nothing.”<br />
Gallagher believes there was an<br />
assumption that Chinese investment<br />
would naturally follow a race in China.<br />
“Teams initially thought Chinese<br />
companies would flock to Formula<br />
One just because it was a big sport<br />
that was coming to China,” he says.<br />
“The Chinese are very shrewd business<br />
people, they don’t tend to give people<br />
their money unless there’s a very good<br />
reason to do so, and actually China<br />
became more an important market for<br />
CHINESE GRAND PRIX<br />
Location<br />
Shanghai International<br />
Circuit, Shanghai<br />
<strong>2013</strong> date 12th-14th April<br />
<strong>2013</strong> title sponsor UBS<br />
Contract expires 2017<br />
existing western sponsors to activate<br />
programmes to achieve some market<br />
penetration. But even that doesn’t work<br />
because Formula One just doesn’t have<br />
the following in China that it needs<br />
to – although the TV numbers seem<br />
impressive it’s only a tiny percentage of<br />
the population of China.”<br />
Gallagher adds: “I’ve spent a great<br />
deal of time in China and in Shanghai<br />
particularly and my understanding from<br />
talking to senior executives in China is<br />
that until Formula One finds a value<br />
proposition for Chinese businesses that<br />
shows Chinese companies what is really<br />
in it for them – and it’s not branding<br />
and hospitality, it’s definitely much more<br />
on the B2B space – it’s going to be very<br />
difficult. Until you get major Chinese<br />
companies backing Formula One and<br />
promoting Formula One in China I<br />
think the population will struggle to get<br />
behind it. I think someone needs to go<br />
and talk to Barry Hearn about how a<br />
sport like snooker can become so huge<br />
in China when a sport like Formula<br />
One has failed to take off.”<br />
Despite the obvious promotional<br />
problems, the Chinese government<br />
continues to back the event financially.<br />
Having covered the costs of financing<br />
the Shanghai International Circuit,<br />
the vice mayor of the city was able to<br />
announce a new seven-year agreement<br />
to host a Grand Prix in February<br />
2011. The deal runs until 2017 and<br />
is believed to include a reduction on<br />
the original US$40 million annual fee.<br />
Locally, the race is run each year by<br />
Shanghai Juss Event Management, a<br />
sports marketing firm operating in the<br />
Shanghai area.<br />
100 l BLACK BOOK <strong>2013</strong>
2Circuits<br />
Circuits<br />
The Shanghai<br />
International Circuit<br />
hosted the first Chinese<br />
Grand Prix in 2004. The<br />
race has been on the<br />
Formula One calendar<br />
every year since.<br />
BLACK BOOK <strong>2013</strong> l 101
Bahrain Grand Prix<br />
The government-funded<br />
Bahrain International Circuit<br />
in Sakhir was designed and<br />
built to put the tiny island<br />
kingdom on the map<br />
The Bahrain Grand Prix became<br />
Formula One’s first race in the<br />
Middle East in 2004. The purposebuilt<br />
Bahrain International Circuit<br />
(BIC), located deep in the Sakhir<br />
desert around half an hour from the<br />
tiny island kingdom’s capital city of<br />
Manama, was government funded – as<br />
is the reputed US$40 million annual<br />
hosting fee – and part of a wider plan<br />
to establish Bahrain on the world map.<br />
The event quickly came to be<br />
known for the warmth and enthusiasm<br />
of local officials, even if it never quite<br />
attracted the same level of interest<br />
from the population at large despite<br />
huge promotion across Bahrain in the<br />
early years of the race.<br />
Since 2011, however, the Grand<br />
Prix has been overtaken by events<br />
in the country. Political tensions<br />
and violence saw the 2011 race first<br />
postponed, then cancelled, but it<br />
returned in highly controversial<br />
circumstances in 2012 – primarily as<br />
a tool for the Bahraini government to<br />
show the world that its country was<br />
open for business.<br />
The Grand Prix took place amidst high<br />
security and high tension, mercifully<br />
passing without major incident.<br />
The morality of Formula One<br />
BAHRAIN GRAND PRIX<br />
Location<br />
Bahrain International<br />
Circuit, Sakhir<br />
<strong>2013</strong> date 19th-21st April<br />
<strong>2013</strong> title sponsor Gulf Air<br />
Contract expires 2016<br />
racing in Bahrain was hotly debated<br />
throughout the build-up to the event.<br />
The kingdom’s wider problems, the<br />
politicisation of the race through the<br />
ill-judged ‘UniF1ed: One Nation in<br />
Celebration’ official event tagline, and<br />
why exactly Formula One needed<br />
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The Bahrain Grand Prix<br />
returned to the Formula One<br />
schedule in controversial<br />
circumstances in 2012, after<br />
the 2011 race was cancelled<br />
due to political tensions on<br />
the island<br />
to take the risk and hold a race at a<br />
venue where, rightly or wrongly, at<br />
least some of its number were plainly<br />
uncomfortable, were just some of the<br />
issues that vexed the sport.<br />
The Gulf Daily News Englishlanguage<br />
newspaper, the self-styled<br />
‘Voice of Bahrain’, reported that<br />
28,000 people attended the race – just<br />
over half the Bahrain International<br />
Circuit’s capacity.<br />
According to the publication, BIC<br />
chairman Zayed Al Zayani also insisted<br />
between 25,000 and 30,000 spectators<br />
had been present on the first two days<br />
of the meeting.<br />
The Bahraini government has a<br />
contract with Formula One until<br />
2016, while circuit officials are<br />
continuing with their efforts to<br />
attract other series – the FIA World<br />
Endurance Championship visited in<br />
late 2012 – and switch on the local<br />
community to motorsport.<br />
The 2012 event was understandably<br />
quieter than usual from a commercial<br />
perspective but, political problems<br />
aside, Mark Gallagher suggests the<br />
Bahrain Grand Prix’s biggest hindrance<br />
has been the arrival of a second race in<br />
the Gulf region, the Abu Dhabi Grand<br />
Prix, in 2009. “I’d be very concerned<br />
about the future of Bahrain, not just<br />
for the political issues but commercially<br />
it’s difficult to see what it delivers<br />
for Formula One long-term because<br />
in itself it’s not a big marketplace,”<br />
Gallagher says.<br />
“The United Arab Emirates is<br />
much more aggressive in terms of its<br />
commercialised approach to sport,<br />
which means Abu Dhabi realistically<br />
has a greater potential to be long-term.”<br />
Gallagher believes that the Bahrain<br />
International Circuit, which is<br />
now run by Shaikh Salman bin Isa<br />
Al Khalifa, has suffered since the<br />
departure of original chief executive<br />
Martin Whitaker. “One of the great<br />
drivers behind Bahrain in the early<br />
days was the fact that he knew<br />
everyone in Formula One so well,”<br />
Gallagher says, “and I think that built<br />
something behind it.<br />
“It’s a nice facility,” he adds. “The<br />
people behind it are hugely supportive<br />
of Formula One and the trick is really<br />
to find a meaningful contribution<br />
Bahrain can make long-term in terms<br />
of the business piece. At the moment<br />
that seems very difficult to deliver.”<br />
104 l BLACK BOOK <strong>2013</strong>
Spanish Grand Prix<br />
The Circuit de Catalunya<br />
near Barcelona first staged<br />
the Spanish Grand Prix in<br />
1991. The race remains<br />
popular from a corporate<br />
hospitality point of view.<br />
The Spanish Grand Prix has been<br />
staged at Barcelona’s Circuit de<br />
Catalunya every year since 1991 and<br />
for much of that time the event has<br />
marked the start of the European<br />
portion of the world championship.<br />
Between 2008 and 2012 a second<br />
Spanish race, known as the European<br />
Grand Prix, was held on a port-side<br />
circuit in Valencia, the country’s<br />
third city. Valencia’s race was born<br />
out of the city administration’s desire<br />
to continue to promote itself on the<br />
world stage after successfully hosting<br />
the America’s Cup in 2007 and<br />
Formula One’s desire to tap further<br />
into a Spanish market booming after<br />
the arrival of Fernando Alonso as one<br />
of the giants of the sport. However,<br />
a combination of political issues, a<br />
circuit and venue in Valencia which<br />
didn’t endear itself to the Formula<br />
One community and Spain’s financial<br />
collapse have contrived to ensure that<br />
two Spanish races are unsustainable<br />
for the regional governments which<br />
largely fund them. From <strong>2013</strong>, there<br />
will be just one, in Barcelona, and<br />
although there is a plan on the table<br />
for Barcelona and Valencia to take<br />
turns at hosting the event – Barcelona<br />
in <strong>2013</strong>, 2015, 2017 and 2019,<br />
Valencia in 2014, 2016 and 2018 –<br />
the future of the latter remains more<br />
than uncertain.<br />
“I think there’s a greater appetite for<br />
Barcelona than there is for Valencia<br />
from a corporate hospitality and<br />
marketing point of view,” says Jim<br />
Wright, “but if Barcelona can’t afford<br />
it every year and it has to alternate<br />
then so be it. The teams and sponsors<br />
will work to that. I would say if you<br />
gave everyone a choice, we’d probably<br />
prefer to stay in Barcelona.”<br />
Wright describes the Spanish Grand<br />
Prix as a “very useful event” from a<br />
corporate perspective. Mark Gallagher<br />
adds that the “European season does<br />
have bite and for all sorts of reasons”,<br />
despite the fact that the <strong>2013</strong> calendar<br />
contains only seven races – a record<br />
low – on the continent.<br />
“It’s certainly the case that all<br />
the teams continue to be based in<br />
Europe and there continues to be a<br />
Euro-centric aspect to sponsors, and<br />
therefore the first local race means<br />
a lot of people can go who wouldn’t<br />
have dreamed of travelling to the<br />
faraway races – and particularly<br />
with travel budgets cut at many<br />
companies,” Gallagher adds.<br />
106 l BLACK BOOK <strong>2013</strong>
2Circuits<br />
Circuits<br />
The rise of Fernando<br />
Alonso has added<br />
thousands to the gate at<br />
the Spanish Grand Prix<br />
over the years. The Ferrari<br />
driver remains a huge star<br />
in Spain.<br />
“Barcelona is a great place for<br />
people to hop down to, super<br />
infrastructure, Fernando Alonso<br />
local hero, and major companies<br />
like Santander who have supported<br />
Formula One. It’s a great event and I<br />
think one that everybody does regard<br />
as a good place to start the new part<br />
of the season.”<br />
As for Valencia, despite local<br />
estimates that its Grand Prix has<br />
generated over €240 million for the<br />
city, Mark Gallagher says the race “is<br />
a good example of why street circuits<br />
don’t always work”. He adds: “Street<br />
circuits really only work, in my view,<br />
when it’s around the recognisable<br />
streets of a city that has something<br />
to show the world. Valencia does<br />
have a heart, unfortunately we don’t<br />
race in the heart, we’re out portside.<br />
It’s difficult to know what that’s<br />
actually saying.<br />
“Valencia, I think, just miscued.<br />
The location doesn’t quite work, bit of<br />
a concrete jungle and I don’t think the<br />
Spanish marketplace could ever sustain<br />
two Grands Prix. If they alternate<br />
I think it’s more likely that people<br />
will skip Valencia and keep going to<br />
Barcelona every other year. Barcelona<br />
is such an accessible city. There are still<br />
too many people who have to get to<br />
Valencia by transiting through another<br />
hub and quite frankly if you’re having<br />
races in Europe no one should have to<br />
transit through anywhere, you should<br />
be able to fly direct and if you can’t it<br />
becomes something of a non-starter.”<br />
Wright adds: “The city of Valencia<br />
do nothing to promote it, presumably<br />
because they’ve spent their money<br />
SPANISH GRAND PRIX<br />
Location<br />
Circuit de Catalunya,<br />
Barcelona<br />
<strong>2013</strong> date 10th-12th May<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2019<br />
on the rights fee. I think the night<br />
image definitely helps Singapore. If<br />
you said to me, ‘Let’s have a night<br />
race in Barcelona, around the streets,<br />
with all the Gaudi buildings as a<br />
backdrop,’ would that be a different<br />
matter? I think the answer’s yes. It’s a<br />
combination of the docklands setting,<br />
another daytime European race and<br />
the fact that Spain’s economy is<br />
obviously struggling.”<br />
BLACK BOOK <strong>2013</strong> l 107
Monaco Grand Prix<br />
The Monaco Grand Prix is<br />
often described as Formula<br />
One’s jewel in the crown<br />
and for good reason. Year<br />
after year the race attracts<br />
a celebrity crowd and the<br />
corporate elite.<br />
MONACO GRAND PRIX<br />
Location<br />
Monte Carlo, Monaco<br />
<strong>2013</strong> date 23rd-26th May<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2021<br />
All the clichés are true. Despite<br />
Singapore’s best efforts, the Monaco<br />
Grand Prix remains the jewel in the<br />
crown of the Formula One world<br />
championship and the event remains<br />
as important to the sport as the sport is<br />
to Monaco. It is for those reputational<br />
reasons, built up over decades, and<br />
thanks to continuing royal support<br />
from the Grimaldis that Monaco,<br />
to some extent at least, continues to<br />
play by its own commercial rules. It<br />
remains the race like no other from<br />
that point of view, even if the arrival of<br />
the likes of Singapore and Valencia on<br />
the calendar means that its Grand Prix<br />
on the streets is not quite as unique as<br />
it was a decade ago.<br />
“I think Monaco has the heritage to<br />
still edge it,” says Jim Wright. “It’s the<br />
quirkiness, the weather, everything else.”<br />
The first Monaco Grand Prix took<br />
place in 1929 and the event has been<br />
part of the world championship on<br />
all but three occasions (1951, 1953,<br />
1954) since 1950. Apart from minor<br />
changes, the same circuit has been used<br />
throughout, with Casino Square and<br />
the harbour front providing just two of<br />
the key backdrops.<br />
In a hark back to the days when<br />
national sporting clubs ran motorsport<br />
unencumbered by promoters or global<br />
governance, the Monaco Grand Prix<br />
is organised, promoted and staged<br />
by the Autombile Club de Monaco<br />
(ACM). ACM holds virtually all<br />
the commercial and marketing<br />
rights around the race, although for<br />
reasons of purity it does not sell title<br />
sponsorship rights. Monaco is also<br />
the only remaining race in Formula<br />
One where the world feed is produced<br />
by a local broadcaster, ensuring the<br />
principality can showcase itself as it<br />
wishes – while, given the restrictions of<br />
the location, much of the hospitality<br />
element is a free-for-all.<br />
For the last four decades the Grand<br />
Prix has effectively been run by one<br />
man, Michel Boeri. Boeri, president<br />
of the ACM since 1972, enjoys a close<br />
relationship with Bernie Ecclestone,<br />
but must also marshal a host of<br />
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Nowhere else in the world<br />
can spectators get as close<br />
to Formula One cars being<br />
driven in anger<br />
stakeholders in and around Monaco<br />
to ensure the Grand Prix takes place<br />
smoothly in the principality each year.<br />
“At 5am everything is open,” he told<br />
SportsPro in 2011, “and at 5.30am<br />
everything is closed and it becomes a<br />
track. That needs an organisation not<br />
only from the Automobile Club but<br />
from the state and public services; it’s<br />
tradition. It’s a question of experience.”<br />
Boeri has direct control over 20,000<br />
grandstand seats and around 13,000<br />
or 14,000 people who view the race<br />
from a lofty position on the hillside<br />
below Prince Albert II’s royal palace. A<br />
conservative estimate suggests 50,000<br />
watch for free on balconies or from<br />
yachts in the harbour.<br />
The budget for the race each year,<br />
including set-up costs, is around<br />
€35 million. Around €10 million of<br />
that is supplied by the Monegasque<br />
government, the thinking being<br />
that far more will be generated for<br />
Monaco through direct and indirect<br />
economic impacts.<br />
Officially, Monaco has a Grand Prix<br />
contract until 2021 in a deal agreed<br />
in July 2010 which also guarantees a<br />
fixed May date. It would, however, be<br />
unthinkable for Formula One to lose<br />
the race.<br />
Commercially and corporately, it<br />
has grown in importance through<br />
the years, although Jim Wright and<br />
Mark Gallagher are slightly cautious<br />
about the future. Says Wright: “I think<br />
one danger with Monaco is the new<br />
restrictions, particularly in terms of the<br />
Bribery Act, which make people think<br />
if they should be going to Monaco and<br />
how they should be going to Monaco,<br />
rather than perhaps some of the<br />
opulence we’ve seen in previous years.”<br />
Gallagher adds: “The corporate<br />
marketplace is slightly more suspicious<br />
of Monaco because at a time of<br />
corporate belt-tightening and senior<br />
executives coming under scrutiny for<br />
the junkets that they go on, I think<br />
Monte Carlo does send out the wrong<br />
message to some corporates.<br />
“But actually that is all washed away<br />
by the fact that for privately wealthy<br />
individuals, the owners, entrepreneurs<br />
of companies, for senior executives<br />
who have the wherewithal to do<br />
their own thing, Monaco remains a<br />
huge attraction. It’s very noticeable<br />
it attracts a young generation of<br />
party-goers – even the 20-somethings<br />
from monied families in Europe go to<br />
Monaco and still regard it as a Mecca.<br />
Monaco will never lose its appeal as a<br />
pillar of the world championship.”<br />
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Canadian Grand Prix<br />
Located in the Saint<br />
Lawrence Seaway, the<br />
Circuit Gilles Villeneuve<br />
hosted its first Canadian<br />
Grand Prix as long ago<br />
as 1978<br />
The Circuit Gilles Villeneuve, named<br />
after Canada’s favourite motorsport<br />
son, lies on the Île Notre-Dame in<br />
the Saint Lawrence Seaway and has<br />
firmly established itself as a favourite<br />
of Formula One teams and fans over<br />
several decades.<br />
Mark Webber, speaking at last year’s<br />
race, eloquently outlined the general<br />
view of the event when he said: “It’s<br />
a sensational event – one of the top<br />
few Grands Prix of the year; fans-wise,<br />
drivers, mechanics, photographers,<br />
journalists, everyone loves coming<br />
here. The city really embraces the<br />
event, the restaurants go for it, the<br />
driver parade lap here is one of the<br />
best parade laps we do in the season.<br />
So there’s a huge amount of positive<br />
aspects which we’ve had here. For a<br />
long, long time, the Canadian Grand<br />
Prix has been held here in a very, very<br />
positive fashion.”<br />
The circuit first hosted the Canadian<br />
Grand Prix in 1978 and has done<br />
so in all but two seasons since. Most<br />
recently, the 2009 event was removed<br />
from the calendar after the failure of<br />
promotional company Grand Prix<br />
F1 du Canada Inc, run by Normand<br />
Legault, to pay its annual race fee.<br />
The race returned for 2010, much<br />
to the delight of the Formula One<br />
paddock, with a new promoter in<br />
Octane Racing Group and a fresh new<br />
approach. The Canadian Grand Prix<br />
walks a financial tightrope at the best of<br />
times but in November 2009 Octane,<br />
led by president and chief executive<br />
François Dumontier, secured a five-year<br />
contract covering 2010 to 2014.<br />
“I think we only realised how good<br />
it was when we didn’t go for that<br />
year,” says Mark Gallagher of a event<br />
which, before the return of the US<br />
Grand Prix in 2012, was Formula<br />
One’s only North American stop. “We<br />
went back in 2010 and everyone was<br />
just blown away by the reaction of<br />
the Canadian fans. It’s a super race, a<br />
fantastic venue.”<br />
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Despite its popularity<br />
amongst fans, teams and<br />
drivers, the Canadian<br />
Grand Prix walks a financial<br />
tightrope and faces a battle<br />
to keep its slot beyond 2014<br />
The Canadian and Quebec<br />
governments, plus the city of<br />
Montreal and its tourism offshoot,<br />
are providing an annual investment of<br />
some CAN$15 million to ensure the<br />
race happens, with the government of<br />
Quebec paying CAN$4 million and<br />
Montreal US$1 million. The Canadian<br />
government and Tourisme Montreal<br />
pay around US$5 million each. In<br />
return, the parties receive a 30 per cent<br />
share of ticket sales revenue.<br />
Keeping the event on the Formula<br />
One calendar is a near-constant<br />
financial balancing act and with talks<br />
on a contract extension likely to begin<br />
after the <strong>2013</strong> race in June, tough<br />
negotiations are seemingly ahead.<br />
Jim Wright, for one, believes that<br />
the Grand Prix in Austin will have<br />
“absolutely zero” impact on Canada’s<br />
largest single-day sporting event, but<br />
suggests the proposed race in New<br />
Jersey, now pencilled in for 2014 after<br />
being postponed for <strong>2013</strong>, may do<br />
given that “it’s a hop, skip and a jump<br />
from New York to Montreal”. He adds:<br />
“Time will tell but Canada has its own<br />
economy, a strong economy. I think it<br />
will continue to survive. It’s also a very<br />
different race and the timing of the<br />
race is superb for most TV markets, so<br />
long may it continue.”<br />
Gallagher concurs and adds that the<br />
event itself has become something of<br />
a magnet for corporate guests. “From<br />
CANADIAN GRAND PRIX<br />
Location<br />
Circuit Gilles<br />
Villeneuve, Montreal<br />
<strong>2013</strong> date 7th-9th June<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2014<br />
a commercial point of view, a lot of<br />
sponsors like it. It’s easy access from<br />
Europe, it’s quite a short flight. It’s<br />
great for the North American market,<br />
easy to get people to come there. It’s<br />
a great, multicultural city, great hotels<br />
and restaurants.<br />
“Quite frankly, you couldn’t ask<br />
for more.”<br />
114 l BLACK BOOK <strong>2013</strong>
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British Grand Prix<br />
Silverstone is one of<br />
Formula One’s classic venues<br />
and has seen substantial<br />
improvements in recent<br />
years, notably a revised<br />
track layout and a new pit<br />
building, dubbed The Wing<br />
Silverstone will forever be enshrined in<br />
Formula One history as the stage for<br />
the first world championship Grand<br />
Prix in 1950. The former airfield has<br />
changed significantly since then, not<br />
least in the past couple of years.<br />
Following the sport’s ill-fated<br />
flirtation with Donington Park,<br />
Silverstone’s owners, the British<br />
Racing Drivers’ Club (BRDC), finally<br />
reached agreement on a long-term<br />
contract with Formula One in 2009.<br />
The deal averages out at over US$17<br />
million a year until 2026, with a break<br />
clause inserted after ten years. The<br />
BRDC then set to work on a major<br />
programme of redevelopment, which<br />
included significant track changes<br />
and the construction of a new pit and<br />
paddock complex.<br />
The Wing, as the new pit building<br />
was christened, cost between UK£27<br />
million and UK£28 million to build.<br />
It is 390 metres in length, 30 metres<br />
tall at its highest point and includes<br />
41 pit garages covering 6,200 square<br />
metres, all-new race control and<br />
media centres, 8,200 square metres<br />
of hospitality space including three<br />
large halls, and a 120-seat auditorium.<br />
It was designed to significantly<br />
improve Silverstone’s corporate<br />
offering, although it has received<br />
something of a mixed reaction from<br />
the motorsport community. “I think<br />
The Wing facilities for VIP guests are<br />
a disappointment,” says Jim Wright.<br />
“The whole experience, from parking<br />
at Copse Corner and having to get on<br />
an ex-Northampton council bus to<br />
be transported for another couple of<br />
kilometres to the Paddock Club, is not<br />
great. I think the actual Wing building<br />
leaves a lot to be desired as a Paddock<br />
Club venue in comparison with other<br />
circuits around the world.<br />
“It’s sad because I think if someone<br />
had spent more time and attention<br />
on it, it would have been a superb<br />
building. It’s still very important but<br />
they need to put some effort and work<br />
116 l BLACK BOOK <strong>2013</strong>
2Circuits<br />
Circuits<br />
BRITISH GRAND PRIX<br />
Location<br />
Silverstone<br />
<strong>2013</strong> date 28th-30th June<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2026<br />
into the VIP experience because at the<br />
moment it’s not great.”<br />
With two thirds of the Formula<br />
One teams still based in the UK –<br />
namely McLaren, Red Bull Racing,<br />
Lotus, Mercedes, Force India,<br />
Williams, Caterham and Marussia<br />
– Silverstone remains an important<br />
venue on the Formula One calendar<br />
from a corporate perspective. The<br />
corporate experience, however, is not<br />
always a glowing one. “I’m not sure<br />
they’ve got the mixture right,” suggests<br />
Mark Gallagher. “There’s something<br />
a little bit soulless about Silverstone<br />
from a corporate point of view.<br />
“The Wing has certainly added<br />
tremendously to the infrastructure<br />
and that is a real credit to the BRDC.<br />
Silverstone will continue to draw the<br />
corporate audience simply because<br />
it’s in one of Europe’s biggest markets,<br />
simply because eight of the Formula<br />
One teams are based in the UK so<br />
it’s a home race for so many people.<br />
But I think they’re coming to<br />
Silverstone more because of the<br />
geographical location in the UK than<br />
because Silverstone per se represents<br />
a buzzy place to be. It’s undoubtedly<br />
successful and now they’ve got the<br />
long-term contract that’s not going<br />
to change.”<br />
Although a three-day crowd of<br />
297,000 – 80,000 on Friday, 90,000<br />
on Saturday and 127,000 on Sunday<br />
– attended the 2012 Grand Prix, the<br />
event was something of a throwback<br />
to the bad old days. Sustained rainfall<br />
in the weeks leading up to the race<br />
saw Silverstone plunged into the kind<br />
of muddy congestion crisis that was<br />
the norm a decade ago, most notably<br />
in 2000 when the GP took place at<br />
Easter rather than in its usual late<br />
June/early July slot.<br />
The longer-term vision at<br />
Silverstone is for a further phase of<br />
redevelopment, but new investment is<br />
required to make that happen. Talks<br />
with a Qatari group about a 150-<br />
year lease on the circuit broke down<br />
in March 2012, leaving the BRDC<br />
looking for fresh investors to fulfil its<br />
ambitions for one of Formula One’s<br />
most traditional venues.<br />
BLACK BOOK <strong>2013</strong> l 117
German Grand Prix<br />
The future of the German<br />
Grand Prix remained under<br />
threat until January when<br />
the financially stricken<br />
Nürburgring reached a deal<br />
with Formula One to host<br />
the <strong>2013</strong> race<br />
Germany’s two Formula One-standard<br />
circuits have shared the German Grand<br />
Prix since 2008, an alternation model<br />
which appears likely to be replicated<br />
elsewhere in Europe over the coming<br />
years. The financial burden of hosting<br />
a Grand Prix annually had taken its<br />
toll on both the Nürburgring and<br />
Hockenheim, making the decision to<br />
split hosting rights – Hockenheim in<br />
2008, 2010 and 2012, the Nürburgring<br />
in 2009, 2011 and <strong>2013</strong> – inevitable.<br />
Whilst just about manageable<br />
during the sport’s boom years in<br />
Germany, when Michael Schumacher<br />
was winning regularly, two races<br />
in the country ultimately proved<br />
unsustainable for both of Europe’s two<br />
largest sports arenas.<br />
Even now, with just one race every<br />
two years, significant challenges remain<br />
for both venues, a fact starkly illustrated<br />
by a race-day attendance of just 59,000<br />
at the 120,000-capacity Hockenheim<br />
last year. The Nürburgring, meanwhile,<br />
has been engulfed by financial problems<br />
since it lasted hosted a Grand Prix<br />
in 2010. It pays US$13 million to<br />
Formula One Group to host the race,<br />
but that is split over two years.<br />
Despite that relatively low fee, only<br />
the intervention of the local state<br />
government, which already owns a 90<br />
per cent chunk of Nürburgring, in the<br />
form of a nine-digit loan appears to<br />
have saved the circuit from bankruptcy<br />
following years of financial calamity<br />
and legal wrangling. Hockenheim<br />
had been faced with the unappetising<br />
financial prospect of once again hosting<br />
the German Grand Prix every year; for<br />
the moment, at least, that possibility<br />
has faded, although as the year started<br />
no deal had been agreed with the<br />
Nürburgring to host the <strong>2013</strong> race<br />
with the German Grand Prix venue<br />
listed as TBC. Its place on the calendar<br />
was eventually confirmed in January.<br />
For all the current challenges,<br />
however, Germany remains a European<br />
stronghold for Formula One, with the<br />
emergence of Sebastian Vettel as a triple<br />
world champion, Schumacher’s return<br />
and the presence of a fully fledged<br />
Mercedes team on the grid combining<br />
in recent years to ensure the sport<br />
remains very popular in a country<br />
of 80 million consumers. “There’s<br />
significant car manufacturers there<br />
who will undoubtedly continue to use<br />
Formula One from time to time,” adds<br />
Mark Gallagher, a reference to not only<br />
Mercedes but BMW, which withdrew<br />
from the sport in 2009.<br />
“Nürburgring and Hockenheim are<br />
both a bit of a jaunt,” Gallagher<br />
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Since 2007 the Nürburgring<br />
has hosted the German<br />
Grand Prix in odd-numbered<br />
years, sharing the race<br />
with Hockenheim<br />
GERMAN GRAND PRIX<br />
Location<br />
Nürburgring<br />
<strong>2013</strong> date 5th-7th July<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2018<br />
continues. “They’re not in the middle<br />
of the action in terms of big cities,<br />
but the German marketplace does<br />
use it [the Grand Prix]. In its heyday,<br />
early 2000s, when Schumacher was<br />
dominating, it became one of the<br />
massive races in Formula One. I<br />
think it’s suffering now a little bit<br />
from Formula One overexposure in<br />
Germany but, like the UK, Italy and<br />
Monaco, I’m certain Germany will<br />
remain a fixed attraction.”<br />
Jim Wright adds: “It’s still a very<br />
important market. Nürburgring has all<br />
the heritage, Hockenheim is a little bit<br />
more convenient. I don’t see a problem<br />
with either of those venues in terms of<br />
taking partners to it and its importance<br />
in the German marketplace. It’s very,<br />
very important and both circuits do a<br />
decent job.”<br />
The Nürburgring, in particular,<br />
occupies a special place in Formula<br />
One history – the daunting<br />
Nordschleife circuit is still used today<br />
as a revenue generator for would-be<br />
racing drivers to pilot vehicles around<br />
– as Toro Rosso team principal Franz<br />
Tost explained in 2012. “Everybody<br />
in the world knows the Nürburgring<br />
who’s involved in motor racing,”<br />
he said. “I just hope that all the<br />
politicians find a solution to get the<br />
money together that the Nürburgring<br />
will survive. Because in the meantime<br />
a fantastic infrastructure has been built<br />
up around the Nürburgring with all<br />
the hotels and, apart from this, there<br />
are many workshops where parts for<br />
racing cars have been produced. It<br />
would be a shame if people would lose<br />
their jobs from this. There are many,<br />
many races over there: the 24 Hours<br />
for example, and a lot of other races,<br />
and especially Formula One. I just<br />
hope that in future we will also have a<br />
race there because the Nürburgring is<br />
history for motorsport in general and<br />
especially for Formula One.”<br />
120 l BLACK BOOK <strong>2013</strong>
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Hungarian Grand Prix<br />
Located on the dusty<br />
outskirts of Budapest, the<br />
Hungaroring hosted its<br />
first Formula One race in<br />
1986 and is poised for an<br />
extension until at least 2021<br />
The Hungarian Grand Prix has been<br />
staged every year since 1986 at the<br />
Hungaroring, a technically challenging<br />
circuit on the outskirts of Budapest.<br />
The layout itself has been modified on<br />
a couple of occasions, most recently in<br />
2003, but more changes are planned as<br />
a result of a new deal which should see<br />
the race remain on the Formula One<br />
calendar until at least 2021.<br />
In June last year the founding father<br />
of the event, Tamas Frank, passed<br />
away. Frank, more than anyone else, is<br />
responsible for Hungary’s longstanding<br />
place on the Formula One calendar,<br />
thanks in no small part to his excellent<br />
relationship with Bernie Ecclestone.<br />
His loss was a major blow to local<br />
organisers, although his legacy is likely<br />
to be a new long-term deal to take the<br />
event into the next decade.<br />
The Hungaroring currently has a<br />
contract to host a Grand Prix until<br />
2016 and internal discussions about<br />
the financial framework required to<br />
sustain the event beyond that time<br />
have been underway for some time,<br />
so much so that in November 2012<br />
Hungaroring executive Peter Gerstl<br />
was able to announce an agreement<br />
with Ecclestone for five more years.<br />
It is believed that the contract will be<br />
signed at the <strong>2013</strong> event, confirming<br />
that the Grand Prix will take place<br />
until at least 2021. The Hungaroring<br />
has also agreed to fund a package<br />
of track improvements, including<br />
another layout tweak designed to<br />
increase overtaking and upgrades to<br />
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Spectators get a good deal<br />
at the Hungaroring, which<br />
lies in a natural valley. 80<br />
per cent of the track is visible<br />
from any vantage point<br />
surrounding facilities.<br />
“Despite the costs of the construction,<br />
the race means significant income for<br />
our country on a national level,” Gerstl<br />
was quoted as saying.<br />
Despite the obvious attractions of<br />
nearby Budapest, one of Europe’s great<br />
cities, the Hungarian Grand Prix has<br />
mixed appeal amongst the Formula<br />
One community. “I think it ranks<br />
pretty low,” says Jim Wright, frankly.<br />
“Not from a spectator point of view –<br />
it still attracts a decent crowd and it’s a<br />
decent circuit, a bit different to some of<br />
the others – but I’ve never experienced<br />
sponsors sticking their hands up<br />
saying, ‘That’s a must.’ Commercially,<br />
it has little value and there’s obviously<br />
no sponsorship of note that has ever<br />
originated from Hungary.”<br />
Mark Gallagher, however, offers a<br />
more positive assessment. “It’s a very<br />
popular venue for the teams and media,”<br />
he says. “It’s good for sponsors. Budapest<br />
is a great city. I think the hope that<br />
Hungary might have provided a gateway<br />
to the eastern European market never<br />
really developed. I think it’s a good event<br />
but it hasn’t achieved its potential.<br />
“I think Formula One ought to<br />
be seeing how Hungary can be used<br />
better to attract the audiences from<br />
the surrounding nations. Ticket prices,<br />
of course, are a fundamental problem<br />
across all of the world championship<br />
but I think in eastern Europe, with<br />
lower wage levels, Hungary represents a<br />
fairly expensive proposition. The loss of<br />
HUNGARIAN GRAND PRIX<br />
Location<br />
Hungaroring, Budapest<br />
<strong>2013</strong> date 26th-28th July<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2016<br />
Robert Kubica was a real blow because<br />
we lost that Polish audience who<br />
were going to use both Germany and<br />
Hungary to come and see their hero.”<br />
Aside from its annual Formula One<br />
race the Hungaroring, which sits in a<br />
natural valley ensuring that 80 per cent of<br />
the racetrack is visible from any vantage<br />
point, hosts a wide variety of other<br />
formulae, notably a round of the FIA<br />
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Belgian Grand Prix<br />
For all the logistical<br />
challenges of Spa-<br />
Francorchamps, the circuit<br />
is amongst the very finest<br />
in the world and its race is<br />
a highlight of the Formula<br />
One season<br />
For Formula One fans, Spa-<br />
Francorchamps is a must; for Formula<br />
One’s corporate community the event<br />
is slightly less attractive. Situated deep<br />
in the Ardennes forest, Spa retains<br />
something of the past, the circuit<br />
winding uphill and down through the<br />
trees along the same roads as all of the<br />
great drivers of Formula One history<br />
have raced. It has an atmosphere all of<br />
its own.<br />
From a business perspective, however,<br />
the Belgian Grand Prix has struggled for<br />
some years. It continues to be on any<br />
list assembled of races with uncertain<br />
futures and seems to be beset by<br />
financial and political challenges.<br />
A complicated commercial set-up,<br />
with several stakeholders including<br />
more than one regional government,<br />
and the challenge of location and lessthan-ideal<br />
surrounding infrastructure<br />
have ensured the long-term future<br />
of the event is flimsy at best. That is<br />
despite organisers revealing that the<br />
2012 edition benefited the Belgian<br />
economy to the tune of €43.4 million.<br />
Despite the undoubted allure of<br />
the circuit itself – along with Suzuka<br />
it is regarded by drivers as the most<br />
challenging on the world championship<br />
calendar – local organisers have<br />
traditionally struggled to draw the<br />
crowds. Around 60,000 are thought<br />
to have attended the event in 2012,<br />
a figure hit partly as a result of the<br />
limitations of surrounding facilities.<br />
The infrastructural difficulties have also<br />
made the race a difficult sell for teams<br />
and sponsors.<br />
“It’s declined,” confirms Jim Wright,<br />
“and that’s principally for three reasons.<br />
The amount of money which is being<br />
charged now for VIP hospitality is way<br />
too high for that market to be able<br />
to justify. I think that the continuing<br />
question mark over the race for a<br />
number of years also did it some harm<br />
and I think the third aspect which<br />
has come into play in recent years is<br />
that it’s come now towards the end of<br />
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the August holidays and increasingly<br />
August, corporately, is holiday. Getting<br />
corporate guests to come to Spa when<br />
it’s late August is very difficult.”<br />
So precarious is the financial<br />
tightrope walked by Spa-<br />
Francorchamps that local organisers<br />
were reportedly in discussions about a<br />
potential race-sharing model with Paul<br />
Ricard, a former host of the French<br />
Grand Prix, midway through 2012.<br />
That never materialised, however, and<br />
it is likely Spa will push for a contract<br />
extension on its own until at least<br />
2016, with its current deal believed to<br />
be expiring at the end of <strong>2013</strong>.<br />
“Spa is a great venue for your<br />
petrolhead sponsors, or a guest of a<br />
sponsor who just loves Formula One,”<br />
says Mark Gallagher. “If a sponsor<br />
has canvassed his customers they<br />
will know who’s into it and anyone<br />
who’s into it will want to go to Spa at<br />
some point. In Europe, Spa, Monza<br />
and Monaco tend to be the big three<br />
that people want to go to if they’re<br />
into Formula One. You can’t bring<br />
large numbers to Spa, there isn’t the<br />
infrastructure hotel or hospitality-wise.<br />
It’s modest from a commercial point<br />
of view but the passion of the people<br />
that go there probably outweighs the<br />
lack of numbers.”<br />
The passion of the drivers for Spa is<br />
BELGIAN GRAND PRIX<br />
Location<br />
Spa-Francorchamps<br />
<strong>2013</strong> date 23rd-25th August<br />
<strong>2013</strong> title sponsor Shell<br />
Contract expires <strong>2013</strong><br />
undimmed. Michael Schumacher raced<br />
there for the final time in 2012. He<br />
said: “It’s one of the old character tracks<br />
with lots of history. It is going through<br />
the natural countryside that we are in,<br />
the up and down like a rollercoaster;<br />
there are so many variants that make it<br />
so particular and so special.”<br />
BLACK BOOK <strong>2013</strong> l 127
Italian Grand Prix<br />
Monza has hosted motor<br />
racing since 1922 and has<br />
staged the Italian Grand Prix<br />
all but once since 1950, the<br />
exception coming when<br />
building work was carried<br />
out in 1980<br />
Located around half an hour from<br />
the centre of Milan, the Autodromo<br />
Nazionale Monza is one of the shrines<br />
of motorsport. Woven into Monza’s<br />
Royal Park, it has been the scene of<br />
motor races since 1922 and since<br />
1950 it has been home of the Italian<br />
Grand Prix, save for the 1980 race<br />
which was held at Imola while track<br />
refurbishments took place.<br />
As Ferrari’s home race the Italian<br />
Grand Prix has as its traditional<br />
backdrop the Tifosi, especially in a<br />
year when the team is still involved<br />
in a world championship tussle by<br />
September. The passionate support<br />
and the rich history of the venue<br />
combine to make the race one of the<br />
standout attractions on the calendar.<br />
The podium, located uniquely on<br />
a bridge overlooking the pit-lane,<br />
always provides one of the images<br />
of the season, with fans flocking<br />
underneath it after the race –<br />
particularly if the top three includes a<br />
Ferrari driver.<br />
The race also has an important<br />
commercial role. It brings with it the<br />
traditional arrival of a delegation of<br />
Ferrari executives led by president<br />
Luca di Montezemolo, and is also<br />
the final stage of the European part<br />
of the season. Deals, be they driver<br />
announcements or sponsorships for<br />
the following year, have historically<br />
been done at Monza, although as the<br />
final international swing of the season<br />
expands almost annually the Italian<br />
Grand Prix gets further and further<br />
from the end of the championship.<br />
“There are a number of things<br />
about Monza,” confirms Mark<br />
Gallagher, before examining the<br />
commercial appeal of one of Formula<br />
One’s most traditional yearly events.<br />
“Its proximity to Milan favours it<br />
because a lot of corporate guests<br />
and their spouses or partners regard<br />
Milan as a great place to go, so it<br />
ticks a box there. Its presence as the<br />
last European race means that, in my<br />
experience, quite often what happens<br />
is European sponsors suddenly have<br />
a rush of urgency to cram in the<br />
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final European race, so there’s a big<br />
build-up of enquiries about Monza in<br />
mid-July when everyone realises it’s<br />
the last race before it’s off into the rest<br />
of the world. It works from that point<br />
of view.<br />
“Then there is the Spa brigade, the<br />
die-hards, who want to stand on the<br />
banking and take in the atmosphere<br />
of the Monza park. All of those things<br />
combined make it a very popular<br />
event and one that is a vital pillar of<br />
Formula One long-term.”<br />
Although popular the event is<br />
an expensive one for the corporate<br />
community, according to Jim Wright.<br />
“The pricing argument still applies<br />
to the Italian market and I think it’s<br />
difficult for them to spend that kind of<br />
money on corporate guests,” he says.<br />
“Timing-wise, though, it’s OK<br />
because people are back from holidays,<br />
and because it’s always the first<br />
weekend in September it benefits from<br />
that [consistency of date]. It’s a very<br />
traditional venue.”<br />
The overall crowd at the race<br />
tends to rise and fall depending on<br />
Ferrari’s performance. In a good year<br />
it is packed to the rafters; in a bad<br />
one, such as 2009, there are swathes<br />
of empty seats, even in the main<br />
grandstand opposite the pits.<br />
Such is the historic importance<br />
of the event, it is believed that the<br />
Societa Incremento Automobilsmo<br />
ITALIAN GRAND PRIX<br />
Location<br />
Autodromo Nazionale,<br />
Monza<br />
<strong>2013</strong> date 6th-8th September<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2016<br />
e Sport (SIAS) pays a much smaller<br />
annual hosting fee to Formula One<br />
Management than many other races<br />
on the calendar. SIAS, which is 70 per<br />
cent owned by the Automobile Club<br />
of Milan and 30 per cent by its estate<br />
agency, was responsible for building<br />
and managing Monza.<br />
BLACK BOOK <strong>2013</strong> l 129
Singapore Grand Prix<br />
In just five years Singapore’s<br />
floodlit street race has<br />
become a firm favourite on<br />
the Formula One calendar<br />
and one of the season’s<br />
most glamorous events<br />
Singapore joined the Formula One<br />
calendar in 2008, one of several new<br />
races to pop up over the past decade.<br />
None, though, are quite like that<br />
staged by the tiny south-east Asian<br />
city-state. The Grand Prix takes place<br />
at 8pm local time, under floodlights<br />
which are installed around the city’s<br />
Marina Bay District. It has become<br />
an instant classic of the sport, a<br />
challenging and unique test for drivers<br />
and a magnet for corporate and<br />
celebrity guests alike.<br />
The event itself is the brainchild<br />
of local billionaire Ong Beng Seng, a<br />
reclusive type who has a longstanding<br />
relationship with Formula One chief<br />
executive Bernie Ecclestone. Ong,<br />
in collaboration with the Singapore<br />
government, not only hit upon the<br />
idea of an annual Formula One race<br />
as a way to promote Singapore but<br />
had the masterstroke of making it<br />
the sport’s first night race. The plan<br />
has worked a treat; few races on the<br />
world championship calendar are as<br />
popular and even fewer have been as<br />
immediately successful.<br />
It was no surprise, given the<br />
performance of the event, that in 2012<br />
the Singaporeans agreed to extend<br />
their deal for the race until at least<br />
2017 – although the negotiations<br />
were believed to be hard-fought,<br />
with the government keen to find<br />
a way to reduce the original annual<br />
race fee of around US$50 million.<br />
The government funds 60 per cent<br />
of the race, with the rest covered by<br />
Ong’s private entity, Singapore GP<br />
Pte Ltd. The overall cost of the event,<br />
once lighting installations and track<br />
set-up are also factored in, is some<br />
US$122 million annually. It is believed<br />
Singapore has found a way to reduce<br />
that amount, although it is unclear<br />
if that means a reduction in the fee<br />
payable to Formula One beyond <strong>2013</strong>.<br />
“We believe Formula One has added<br />
a new dimension to our city,” Ong<br />
SINGAPORE GRAND PRIX<br />
Location<br />
Singapore<br />
<strong>2013</strong> date 20th-22nd September<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2017<br />
said. “But we feel this spectacular<br />
night race has also brought a different<br />
dimension to Grand Prix racing.”<br />
Formula One certainly feels the benefit<br />
of the 8pm start time: the race is<br />
beamed live to Europe, which remains<br />
the sport’s television heartland even as<br />
the location of races moves away from<br />
the continent, at lunchtime.<br />
Jim Wright agrees with those who<br />
believe Singapore has very quickly<br />
bedded in as a Grand Prix venue. “It<br />
has established itself as one of the very,<br />
very top events,” he says, “despite very<br />
high prices. It is very, very popular.<br />
The imagery which comes from<br />
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that event is very strong. The local<br />
promoter works very, very hard at<br />
making sure everyone is catered for –<br />
spectators, corporate guests, etc – and<br />
its positioning in Asia is obviously a<br />
very premium-positioned economy.”<br />
Mark Gallagher concurs. “From a<br />
business point of view it’s a great hub,”<br />
he explains, “and perfect to fly into<br />
from all over Asia. It’s got everything.”<br />
Gallagher does, however, identify<br />
one area of potential concern relating<br />
to Formula One’s annual trip to the<br />
city-state. “One thing that perhaps<br />
Singapore needs to be a little bit<br />
cautious about is that sponsors pick up<br />
things when they talk to locals and it’s<br />
noticeable that the locals are left cold<br />
by Formula One on many occasions –<br />
taxi drivers will quite often complain<br />
about the race being in town. I think<br />
that takes the edge off the experience<br />
sometimes. This is one of the things<br />
that Formula One has to be careful<br />
about: the authenticity of events in<br />
terms of their appeal is important. I<br />
think there’s still work to be done in<br />
Singapore but it is a superb event to<br />
visit and the commercial audience<br />
loves it.”<br />
BLACK BOOK <strong>2013</strong> l 131
Korean Grand Prix<br />
From an image, location and<br />
financial point of view, the<br />
Korean Grand Prix leaves<br />
a lot to be desired. It will<br />
stage its fourth Grand Prix<br />
in <strong>2013</strong>.<br />
If the ultimate aim of any Grand Prix<br />
venue is to showcase the city, region<br />
or country in which it takes place<br />
then the Korean Grand Prix is a prime<br />
example of how not to do it. The<br />
Korea International Circuit, backed by<br />
regional and national government, was<br />
specially built to host Formula One<br />
and staged its first race in 2010. Two<br />
more races have been held since then:<br />
financially and in terms of image, they<br />
have been disastrous for the country.<br />
“The location of a Grand Prix<br />
is very important, in terms of the<br />
populous and sponsor community,”<br />
explains Mark Gallagher. “From<br />
a commercial point of view Korea<br />
has backfired spectacularly.” The<br />
location problem is not one that<br />
can be resolved. The circuit lies in<br />
the south-west of the country in the<br />
Yeongnam region, part of the South<br />
Jeolla Province. The nearest town is<br />
Mokpo, a major shipping terminus<br />
with, by all accounts, little else to<br />
commend it. The Korea International<br />
Circuit, originally conceived to be<br />
the glamorous centrepiece of a newly<br />
built city and resort, is therefore<br />
hundreds of miles away from the<br />
country’s capital, Seoul. It is, as one<br />
wag memorably put it some years ago,<br />
akin to “staging the British Grand Prix<br />
in Aberdeen”.<br />
“The major Korean companies are<br />
not associated with it,” Gallagher says.<br />
“Bernie Ecclestone was promised a<br />
huge resort, which doesn’t seem to have<br />
happened. It’s miles from anywhere<br />
and it doesn’t promote Korea in a<br />
positive way.” The resort has failed to<br />
materialise; a victim, apparently, of the<br />
global financial crisis.<br />
Although the circuit is a challenge,<br />
the Formula One community has<br />
predictably failed to take to an event<br />
in such a remote location, with<br />
little of the required surrounding<br />
infrastructure and so little apparent<br />
local enthusiasm.<br />
“I think the government of South<br />
Korea, the minister of sport, ought<br />
to be appalled because to have the<br />
world’s media visiting your country<br />
and talking primarily about the fact<br />
they’re staying in brothels or that the<br />
local population just don’t care about<br />
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the race is the antithesis of what a<br />
world class Formula One event should<br />
be about,” Gallagher continues. “The<br />
circuit’s not bad; it’s in the wrong<br />
part of South Korea. We should be<br />
racing in South Korea and Samsung<br />
and Hyundai, LG and Kia, Korean<br />
Air and Hanjin, all these great Korean<br />
companies, ought to be 100 per cent<br />
behind it, but I’m afraid the track<br />
would have to be dragged all the way<br />
back up to Seoul for that to happen.”<br />
In 2012, for the third year running,<br />
local promoters lost a significant sum<br />
on the event – as much as UK£23<br />
million, although that was a better<br />
result than the first two years. “Just<br />
because the loss was reduced… I am<br />
not sure we can call this year’s race a<br />
success,” was how one government<br />
official put it.<br />
The original promotional company<br />
behind the race, a public/private<br />
partnership called Korea Auto Valley<br />
Operation (KAVO), was dissolved<br />
in 2011 following the dismissal of<br />
the original management team led<br />
by Chung Young-Cho. A new team<br />
led by Park Won-Hwa has taken over<br />
control of the event and was able<br />
to negotiate a change to its original<br />
contract, which committed KAVO<br />
to paying US$36 million in 2010<br />
and the same again, plus a 10 per<br />
cent escalator each year, until the<br />
end of an initial seven-year contract,<br />
with a five-year option. The revised<br />
terms are believed to cut annual<br />
KOREAN GRAND PRIX<br />
Location<br />
Korea International<br />
Circuit, Yeongam<br />
<strong>2013</strong> date 4th-6th October<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2017<br />
costs by as much as US$20 million<br />
but the evidence of the 2012 results<br />
suggests that the event is still proving<br />
financially crippling to its organisers.<br />
That the loss in 2012 came after the<br />
event attracted a crowd of 103,000 on<br />
race day, however, indicates there is<br />
something fundamentally awry with<br />
the business model in one of Formula<br />
One’s newest territories.<br />
BLACK BOOK <strong>2013</strong> l 133
Japanese Grand Prix<br />
Japan has been a fixture on the Formula<br />
One calendar since the 1980s, with<br />
Suzuka hosting the majority of races<br />
during that period. The famous old<br />
circuit, one of the very best in the entire<br />
sport, returned to the calendar in 2009<br />
after the Japanese Grand Prix spent<br />
two years at the Fuji Speedway. In the<br />
meantime, Suzuka set to work on a<br />
multi-million dollar package of revisions<br />
to facilities, notably a new pit complex<br />
and main grandstand. Since the race’s<br />
return that grandstand has been packed<br />
to the rafters, with a big crowd rooting<br />
for local hero Kamui Kobayashi.<br />
He rewarded them in 2012 with an<br />
emotional podium finish, although it<br />
was not enough to keep his drive with<br />
the Sauber team. His failure to secure<br />
a <strong>2013</strong> seat may well be a problem for<br />
local organisers of his home Grand<br />
Prix; over the years the crowd in Japan<br />
has fluctuated heavily based on the<br />
level of local involvement. The same<br />
is true of the corporate element of the<br />
event, according to Mark Gallagher.<br />
“Japan is a conundrum,” he says.<br />
“Commercially it ought to be massive<br />
and it only takes a Honda or a Toyota<br />
or a Nissan to be in Formula One for<br />
that to take place, but we’ve really seen<br />
Japan catch a cold around Formula<br />
One in the years since Honda and<br />
Toyota pulled out.<br />
“There was a time when Formula<br />
One was huge in Japan,” Gallagher<br />
continues. “The Senna era, then Leyton<br />
House when Akira Akagi bought the<br />
March Formula One team, Footwork<br />
Arrows – there was a 15-year period<br />
when Formula One just seemed to be<br />
on fire in Japan and everyone seemed<br />
to love it. I think Japan has had so<br />
many problems and the sponsorship<br />
marketplace has been difficult and<br />
therefore it has lost some of its glory<br />
from a commercial point of view.”<br />
Nonetheless, from a Formula One<br />
point of view Suzuka remains an<br />
important venue, thanks in no small<br />
part to its history as the location of<br />
JAPANESE GRAND PRIX<br />
Location<br />
Suzuka<br />
<strong>2013</strong> date 11th-13th October<br />
<strong>2013</strong> title sponsor None<br />
Contract expires <strong>2013</strong><br />
several dramatic world championship<br />
deciders and a passionate and highly<br />
committed group of fans. “It’s a<br />
fantastic event with amongst the best<br />
fans in the world,” Gallagher says, “and<br />
of course a superb venue.<br />
“Just because of Japan’s importance<br />
as a marketplace in the world, because<br />
of the number of manufacturers<br />
based in Japan – the likes of Sony<br />
and the car companies – I think, longterm,<br />
Formula One will have a role<br />
to play there. It needs work to keep it<br />
buzzing however.”<br />
For his part, Jim Wright believes the<br />
country is “very, very important” to the<br />
sport, even if the location of Suzuka<br />
itself does present challenges. “It’s a<br />
strong economy and most international<br />
companies would have representation<br />
in Japan,” he says. “From a racing<br />
point of view everyone loves it; from<br />
a corporate hospitality point of view<br />
it’s very poor given that it’s four hours<br />
or so from Tokyo and two hours’<br />
slog from Nagoya [airport], certainly<br />
by road. It’s poor from that point of<br />
view but it does have a very strong<br />
following, it’s always sold out and for<br />
that reason it has an appeal. That does<br />
translate into corporate interest.”<br />
When Formula One is not in town,<br />
Suzuka can offer a regular diet of<br />
national and regional events including<br />
Formula Nippon and motorcycling<br />
races. The venue, which is run by<br />
the Mobilityland Corp, also includes<br />
a motorsports entertainment centre<br />
and the Motopia theme park, with<br />
the ferris wheel adjacent to the<br />
circuit’s start-finish line always<br />
providing a memorable backdrop to<br />
any on-track action.<br />
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Like Spa-Francorchamps,<br />
Suzuka is a track adored<br />
by drivers and fans. The<br />
Japanese Grand Prix<br />
returned there in 2009<br />
after a two-year move to<br />
Fuji, to everyone’s delight.<br />
BLACK BOOK <strong>2013</strong> l 135
Indian Grand Prix<br />
Built at a cost of US$400<br />
million, the Buddh<br />
International Circuit lies on<br />
the outskirts of Delhi and is<br />
truly a state of the art new<br />
venue for the sport<br />
Following the model most recently<br />
adopted by Turkey, Korea and Abu<br />
Dhabi, the Indian government<br />
invested not only in a Formula One<br />
race but in a permanent motorsport<br />
facility developed specifically to host a<br />
Grand Prix. The Buddh International<br />
Circuit, which lies on the outer edge of<br />
sprawling Delhi, was completed – just<br />
– in time to host its first Formula One<br />
race in October 2011. It is undeniably<br />
impressive, even if the rush to get<br />
everything finished meant there were<br />
many rough edges in year one. In 2012,<br />
everything was much more polished<br />
and in line with the expectations<br />
of the sport. While the circuit itself<br />
is admirable, nowhere else on the<br />
Formula One calendar is the contrast<br />
between the glamour of Formula One<br />
and the poverty which surrounds the<br />
venue more acute.<br />
The Buddh International Circuit<br />
will ultimately form a major part of<br />
a sports city created by the Jaypee<br />
Group, the construction giant which<br />
is behind the US$400 million venue<br />
in the Greater Noida district. “It’s very<br />
much part of Delhi,” says Jim Wright.<br />
“In London terms it’s not in the West<br />
End but would be in, say, Wembley,<br />
but it’s an area of the city which is<br />
rapidly developing and obviously<br />
Jaypee Group were smart enough<br />
to get all that land free and to build<br />
that as an attraction for housing and<br />
commercial development – and their<br />
quid pro quo for that was they had to<br />
build the roads.”<br />
The event had an exceptional debut<br />
in 2011, attracting a Sunday crowd<br />
of some 94,000 for a race dominated<br />
by Sebastian Vettel. Yet Vettel’s 2012<br />
victory, coming in the midst of a tight<br />
world championship battle, drew<br />
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Located at the heart of New Delhi, Taj Mahal Hotel is a timeless tribute to hospitality<br />
and service, complementing the broad boulevards and leafy splendour of Delhi's chief architect, Edwin Lutyens.<br />
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A modern metropolitan marvel which is just the right mix of style and substance,<br />
Taj pays tribute to life in motion at India’s Millennium City – Gurgaon.
The Indian Grand Prix has<br />
been run since 2011, with<br />
both races so far won in<br />
dominant fashion by world<br />
champion Sebastian Vettel<br />
and Red Bull Racing<br />
only 61,000, a worrying sign that the<br />
first-year novelty has worn off.<br />
Mark Gallagher believes that India<br />
now faces the same challenge as all of<br />
Formula One’s new markets: turning<br />
the excitement of the first few events<br />
into a genuine fanbase and motorsport<br />
culture. Key to that, he says, is driver<br />
development on the basis that every<br />
country needs a star to root for. “For<br />
all the money that’s been spent on<br />
the venue and the race, creating the<br />
astonishing first event, someone needs<br />
to take a small percentage of the money<br />
that has been spent and spend it on<br />
driver development in India,” Gallagher<br />
argues. “India needs a superstar and if<br />
India, like China, can find a superstar<br />
driver who is driving for a top five<br />
team, with the genuine potential to win<br />
Grands Prix, they’ll be packed to the<br />
rafters and the sport will really take off.<br />
INDIAN GRAND PRIX<br />
Location<br />
Buddh International<br />
Circuit, Greater Noida<br />
<strong>2013</strong> date 25th-27th October<br />
<strong>2013</strong> title sponsor Airtel<br />
Contract expires 2020<br />
India has the potential to do that.<br />
“It’s a huge country of car-mad<br />
people; they love their sport, the<br />
media there gets behind heroes very<br />
quickly. There’s a danger, because it’s<br />
a market that still doesn’t understand<br />
Formula One very much, that they<br />
look at Karun Chandhok and Narain<br />
Karthikeyan and say, ‘They aren’t very<br />
good,’ and don’t realise that Formula<br />
One is all about getting the driver into<br />
the right car. India and Formula One<br />
needs to find an Indian star of the<br />
future and that is achievable within<br />
three to five years, but they need to get<br />
on with it.”<br />
Jim Wright, meanwhile, believes<br />
the sport should be very excited about<br />
the commercial possibilities India<br />
offers. “There’s great potential in the<br />
marketplace and it’s a marketplace<br />
where everyone wants to go,” he says.<br />
Wright adds that there are still some<br />
organisational creases to be ironed<br />
out. “They didn’t tell people who were<br />
buying tickets when they should arrive<br />
so in ignorance people were looking<br />
to pitch up at 2.30pm or 2.45pm for<br />
a 3pm start – of course there were<br />
huge traffic jams and many people<br />
didn’t get into the track,” he explains.<br />
“Also, corporate hospitality is just<br />
stupidly priced in comparison to what<br />
is affordable in that marketplace, so I<br />
think that should be looked at.”<br />
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Abu Dhabi Grand Prix<br />
The Yas Marina circuit in<br />
Abu Dhabi probably marks<br />
the high point of Formula<br />
One facility design. Part of a<br />
US$40 billion development,<br />
the circuit now stages one<br />
of the must-visit events of<br />
any season.<br />
Formula One probably peaked in terms<br />
of race venue design with the Yas Marina<br />
Circuit, one of the first elements of a<br />
massive US$40 billion development of<br />
manmade Yas Island and undoubtedly<br />
the most technologically advanced and<br />
spectacular Grand Prix venue of all.<br />
Woven around a manmade port<br />
and the visually stunning Yas Hotel,<br />
the exterior of which changes colour<br />
on demand and provides spectacular<br />
imagery during a Grand Prix, the<br />
circuit itself may not quite live up to<br />
the surroundings, but Abu Dhabi has<br />
undoubtedly made a statement with its<br />
purpose-built Formula One venue.<br />
“It’s a top three Formula One event<br />
now along with Singapore and<br />
Monaco in my opinion,” says Jim<br />
Wright. Mark Gallagher adds: “It’s<br />
a delightful event. Infrastructure is<br />
perfect, the hotels are fantastic.”<br />
Where once Yas Marina Circuit stood<br />
alone on a deserted island, some 20<br />
minutes or so from the heart of Abu<br />
Dhabi, it is increasingly surrounded<br />
by hotels, restaurants and other leisure<br />
facilities such as the Yas Links golf<br />
course. The Ferrari World theme park<br />
has become a particularly distinctive<br />
feature, sitting alongside the circuit.<br />
The overall Yas Island project is a<br />
fundamental part of Plan Abu Dhabi<br />
2030, which was launched in 2007 by<br />
the Abu Dhabi Urban Planning Council<br />
as the strategy for the emirate to become<br />
a hub for tourism and business.<br />
The Abu Dhabi Grand Prix, run at<br />
5pm local time with the start taking<br />
place at sunset and the end of the race<br />
under floodlights, has been a major<br />
corporate success. “It’s normally sold<br />
out, very strong,” says Jim Wright.<br />
“There’s great warmth towards the event<br />
from the local community and business,<br />
great awareness of the event because they<br />
do a very good job of promoting it and<br />
they’re also smart enough to combine<br />
racing with entertainment.”<br />
Mark Gallagher adds: “It’s a great<br />
event to visit. The market itself is<br />
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not a huge one but for international<br />
companies who will have an EMEA<br />
region, Abu Dhabi is a very appealing<br />
event for that Middle East/Africa market<br />
to bring people and to run consumer<br />
marketing programmes.<br />
“It really is a super event and it is the<br />
reason, long-term, why Bahrain might<br />
ultimately struggle. It’s always been<br />
questionable whether the Gulf region<br />
can sustain two events.”<br />
While the circuit and event are<br />
funded by the government as part of its<br />
strategy to use Formula One to promote<br />
Abu Dhabi, the man tasked with<br />
running Yas Marina Circuit day to day<br />
is Irishman Richard Cregan, a former<br />
Toyota Formula One team manager<br />
who has more than a little motorsport<br />
knowledge to impart.<br />
The circuit hosted its first Formula<br />
One race in 2009 and, as well as the<br />
Grand Prix, has become home to an<br />
annual young drivers test and a variety of<br />
other motorsport and community events.<br />
Cregan, speaking in 2011, told SportsPro<br />
magazine that now the 50,000-capacity<br />
circuit has bedded in, day-to-day<br />
maintenance is the challenge. “It’s a<br />
permanent venue so it’s quite different to<br />
a lot of Formula One circuits in the sense<br />
that all the grandstands are permanent<br />
and require a lot of maintenance,”<br />
he said, “purely because of the harsh<br />
ABU DHABI GRAND PRIX<br />
Location<br />
Yas Marina Circuit,<br />
Yas Island<br />
<strong>2013</strong> date 1st-3rd November<br />
<strong>2013</strong> title sponsor Etihad<br />
Contract expires 2016<br />
conditions of the environment: you have<br />
high humidity in the summer and that<br />
in itself means you have to have a lot of<br />
maintenance. It’s a continuous process.<br />
“The other thing that is happening is<br />
our landscaping is maturing nicely. We<br />
invest a lot of time and effort to make<br />
sure it’s very, very presentable.”<br />
BLACK BOOK <strong>2013</strong> l 141
United States Grand Prix<br />
A challenging new circuit<br />
and a town that offered<br />
the warmest of welcomes<br />
combined to make Formula<br />
One’s first visit to the<br />
United States since 2007 a<br />
memorable success<br />
Until November 2012, Formula One<br />
had not been present in the United<br />
States since the Indianapolis Motor<br />
Speedway hosted its eighth and final<br />
race in 2007. The return came at the<br />
Circuit of the Americas (COTA), a<br />
new venue on the outskirts of Austin,<br />
Texas, purpose-built for the job. The<br />
evidence of the first race suggests the<br />
facility may provide Formula One’s best<br />
chance yet of cracking the market it has<br />
historically found trickiest of all.<br />
The first US circuit built specifically<br />
to host Formula One, the COTA<br />
proved an instant hit for drivers, teams<br />
and fans alike. Praise was equally warm<br />
for the city of Austin in general.<br />
The impressive final ticketing totals<br />
saw 265,499 fans attend over the three<br />
days of the meeting, with 65,360<br />
on Friday, 82,710 for qualifying on<br />
Saturday and an impressive 117,429<br />
through the gates for the race. Circuit<br />
chairman Bobby Epstein called it<br />
a “remarkable experience”, while<br />
UNITED STATES GRAND PRIX<br />
Location<br />
Circuit of the Americas,<br />
Austin<br />
<strong>2013</strong> date 15th-17th November<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2021<br />
Formula One tyre supplier Pirelli got<br />
in the spirit with a special touch for<br />
the local crowd, handing branded<br />
Stetsons to the top three finishers to<br />
wear on the podium.<br />
The task now for local organisers,<br />
not to mention the sport in general,<br />
is to take maximum advantage of<br />
the momentum generated by the<br />
inaugural race.<br />
“The fact that the Circuit of the<br />
Americas has come along<br />
as a purpose-built venue at the same<br />
time as Formula One has sold its TV<br />
rights to NBC, with four of the races<br />
shown on the main NBC channel,<br />
could be important,” suggests Mark<br />
Gallagher. The sport, though, has<br />
hardly helped itself by scheduling the<br />
<strong>2013</strong> race on the same day as the final<br />
Nascar race of the season, as it did<br />
in 2012, and a college football game<br />
involving the Texas Longhorns.<br />
Nonetheless, Gallagher and Jim<br />
Wright believe Austin may just be the<br />
right location for the sport to tap into<br />
potentially lucrative corporate support<br />
from the US. “There are a great many<br />
American companies who look at<br />
Formula One,” Gallagher says, adding<br />
that a proposed second US race on<br />
the streets of New Jersey and against<br />
the backdrop of Manhattan’s skyline,<br />
slated for 2014, will help. “If Circuit<br />
of the Americas is successful and if<br />
New Jersey can get off the ground<br />
those two events have a good chance of<br />
success. What COTA has done is very<br />
brave and it’s to be hoped and prayed<br />
that this is the one that works because<br />
we need to stop the inconsistency<br />
144 l BLACK BOOK <strong>2013</strong>
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Lewis Hamilton won the<br />
inagural US Grand Prix at<br />
the Circuit of the Americas<br />
in 2012, an event which<br />
attracted more than<br />
a quarter of a million<br />
spectators over three days<br />
of Formula One in the United States<br />
marketplace. Hopefully Austin will<br />
really get behind it.”<br />
Wright, meanwhile, believes a<br />
change of philosophy is required by the<br />
sport to make Formula One successful<br />
in the USA. “It depends if Formula<br />
One, like China, accepts that it has<br />
a real job to do in that country and<br />
it rolls its sleeves up and gets stuck<br />
into going about presenting itself and<br />
promoting itself,” he says. “I fear that,<br />
like China, the arrogance of Formula<br />
One will be that all we need to do is<br />
rock up with the great Formula One,<br />
and it will be a struggle. But if they<br />
go about it in the right way there’s<br />
huge potential there. I think certainly<br />
some of the teams are aware of that.<br />
If you look at what Red Bull do, for<br />
example, they’ve gone out there, taken<br />
the car, run it round the streets, done<br />
a promotion with Infiniti, they’re<br />
looking at it positively and working<br />
hard. But why only them? What is the<br />
central rights holder doing to promote<br />
Formula One in America.”<br />
The first Grand Prix in Austin was a<br />
comprehensive success; the potentially<br />
difficult second year awaits.<br />
146 l BLACK BOOK <strong>2013</strong>
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Brazilian Grand Prix<br />
There are few more vibrant<br />
or atmospheric Grand Prix<br />
venues than Interlagos,<br />
which lies in the centre of<br />
São Paulo. The circuit has<br />
now established itself as the<br />
location for Formula One’s<br />
season finale.<br />
150 l BLACK BOOK <strong>2013</strong>
2Circuits<br />
Circuits<br />
Brazil has a big few years ahead in<br />
sporting terms but one of its oldest<br />
international events is its Formula One<br />
race. Interlagos, deep in the heart of<br />
sprawling São Paulo, has been the host<br />
of the country’s Grand Prix every year<br />
since 1990, and before that for much<br />
of the 1970s. The Jacarepaguá circuit<br />
in Rio de Janeiro, which staged the<br />
Grand Prix in 1978 and between 1981<br />
and 1989, is incidentally now being<br />
converted into Rio’s Olympic Park<br />
ahead of the 2016 Games.<br />
Interlagos is one of the sport’s most<br />
historic venues and has produced some<br />
of its most dramatic races, few more<br />
so than the conclusion to the 2012<br />
world championship between Sebastian<br />
Vettel and Fernando Alonso in greasy<br />
conditions last November. A passionate<br />
Brazilian crowd creates an atmosphere<br />
more akin to a soccer stadium than a<br />
Formula One circuit; the race tends to<br />
either sell out or get close, such is the<br />
home support for local drivers – from<br />
Ayrton Senna to Rubens Barrichello and<br />
now Felipe Massa.<br />
By modern-day Formula One<br />
standards, facilities are basic at best;<br />
the circuit is cramped into the city,<br />
making significant revisions difficult.<br />
JimWright, though, believes they<br />
stand up against other venues in the<br />
country. “People talk about the facilities<br />
in comparison with other Formula<br />
One races,” he says, “but I think<br />
for a Brazilian facility it’s perfectly<br />
acceptable. I’ve had the fortune to go<br />
to some of the huge football stadiums<br />
there and by comparison it’s perfectly<br />
adequate, there’s no problem at all.<br />
“I think the biggest problems there<br />
are the fact it’s crammed into a very<br />
small land mass and things like car<br />
parking and access are poor.”<br />
Formula One’s popularity in Brazil<br />
– as well as hosting a race the country<br />
represents one of the sport’s largest<br />
television markets – makes the Grand<br />
Prix each November an attractive<br />
proposition for the corporate sector, even<br />
BRAZILIAN GRAND PRIX<br />
Location<br />
Interlagos, São Paulo<br />
<strong>2013</strong> date 22nd-24th November<br />
<strong>2013</strong> title sponsor None<br />
Contract expires 2015<br />
if Wright believes pricing is an issue. “It<br />
is very, very high for that marketplace,”<br />
he says with particular regards to<br />
corporate hospitality prices, which<br />
unlike most Grands Prix are not totally<br />
controlled by Formula One’s central<br />
management and are partly set by the<br />
local promoters. “I think that does put<br />
people off. But corporately, you do see<br />
some very big brands there. It seems to<br />
be sold out or nearly sold out every year<br />
and it’s very important strategically for<br />
Formula One to be in Brazil.”<br />
Mark Gallagher, too, is a fan. “It’s a<br />
fabulous market,” he says. “São Paulo<br />
is a vibrant city and the circuit of<br />
course is delightful as a race circuit. The<br />
infrastructure from a corporate guest<br />
point of view, for what I would call the<br />
international corporate guest, is not as<br />
good as we’ve come to expect at other<br />
venues. It needs further upgrades. I<br />
think for the Latin American market<br />
it’s good, but I do think it needs some<br />
investment to take it on to the next<br />
level. [Formula One’s] presence and<br />
commercial relevance in São Paulo and<br />
Brazil is just so strong that Brazil ought<br />
to have a very bright future.”<br />
That bright future will require a<br />
contract extension at the end of the<br />
2015 season, a process which will<br />
be handled by the São Paulo city<br />
government and Tamas Rohonyi,<br />
the Hungarian businessman whose<br />
International Promotions company<br />
runs the Grand Prix locally. Unusually,<br />
International Promotions has historically<br />
retained a portion of the trackside<br />
sponsorship and hospitality rights which<br />
are, in all but a few cases, gobbled up by<br />
Formula One’s central management.<br />
BLACK BOOK <strong>2013</strong> l 151
Section Three<br />
Statistics and Insights<br />
Statistics: 154<br />
3<br />
Official Data Partner:
Winning the data race<br />
Nigel Geach, Senior Vice President,<br />
Motorsport, Repucom<br />
With approximately 485 million fans<br />
around the world, Formula One attracts,<br />
excites and engages the public like<br />
few other sports platforms. Last year,<br />
a cumulated global audience of over<br />
two billion tuned in to live broadcasts,<br />
repeats and highlights of the action as a<br />
thrilling title contest went down to the<br />
wire. Despite having one fewer race,<br />
<strong>2013</strong> promises to be just as compelling.<br />
New consumption trends – such<br />
as the shift towards pay TV and the<br />
rapid growth of mobile – have brought<br />
new challenges, but these need not<br />
be feared as they also represent a<br />
substantial opportunity. In terms of<br />
the broadcasting trends, live audiences<br />
have slipped slightly but this impact<br />
has been absorbed by the increasing<br />
audience for highlights. The in-depth<br />
coverage available to the avid fan<br />
on pay TV has, meanwhile, made<br />
Formula One’s audience even more<br />
focused. This in turn allows brands<br />
present in the series to engage with a<br />
traditionally hard-to-reach, sought-after<br />
demographic in a deeper and more<br />
meaningful way than ever.<br />
Without doubt, the fallout of the<br />
economic crisis has hit Formula One,<br />
as it has every other form of sport and<br />
entertainment reliant upon investment<br />
from advertising. The smaller teams<br />
have had an especially difficult time.<br />
But I think we are now starting to<br />
see some light at the end of this<br />
particular tunnel. While a couple of<br />
brands have dropped out, many very<br />
high-profile sponsors are entering the<br />
scene and are keen to make a serious<br />
commitment. Prime examples include<br />
the new partnership between Burn<br />
[the energy drinks brand from Coca-<br />
Cola] and Lotus, the arrival of Ferrari’s<br />
first sponsor from China, Weichai<br />
Power, BlackBerry’s engagement with<br />
Mercedes and, of course, the entrance<br />
of Rolex and Emirates as series<br />
partners. All of these engagements<br />
speak volumes for the quality and sheer<br />
power of the platform.<br />
Our observations show brands are<br />
not reluctant to engage in Formula One<br />
but that, in today’s environment, they<br />
require comprehensive evidence that<br />
their investment is paying off, or that it<br />
will. Effective valuation, measurement<br />
and monitoring of brand engagement<br />
remain critical for teams and sponsors<br />
alike. The days of the ‘chairman’s<br />
choice’ or ‘gut instinct’ sponsorship<br />
engagement may be coming to an end<br />
but it is clear Formula One – and the<br />
opportunity to reach its completely<br />
unique and highly coveted audience –<br />
is as attractive as ever.<br />
Formula One owes its resilience to<br />
its audience, but who is the Formula<br />
One fan in <strong>2013</strong>? The latest wave of<br />
global market research by Repucom<br />
shows us he is getting younger, at an<br />
average age of 39. And yes, despite<br />
increasing female interest in the series<br />
in recent years, he is still male, with<br />
men making up 70 per cent of the<br />
most devoted fan segment.<br />
The avid Formula One enthusiast<br />
has spending power, with 19 per<br />
cent coming from the top surveyed<br />
income group in their respective<br />
country, a whopping nine points<br />
above the population average. He is<br />
also extremely loyal to those brands<br />
engaged in his sport, with more than<br />
six out of ten stating they would<br />
choose a sponsor’s product over a<br />
rival if price and quality were equal.<br />
The Formula One fan is also an early<br />
adopter of new technology, another<br />
key parameter for many of the brands<br />
that invest in the series.<br />
As far as development of this<br />
audience in <strong>2013</strong> is concerned, again<br />
it is a story of opportunities and<br />
challenges. The complications lie in<br />
Asia where a switch away from freeto-air<br />
TV in Japan, with no driver or<br />
manufacturer from that market, could<br />
prove a problem. China’s dependence<br />
on CCTV 5 is also not ideal. Equally,<br />
however, the return of a genuine<br />
championship contender from the<br />
motorsport hotbed of Latin America,<br />
with McLaren’s appointment of Sergio<br />
Pérez, is an extremely positive sign<br />
for the series in terms of amplifying<br />
its presence one of the world’s<br />
economically booming regions. The<br />
NBC deal in the USA could also be<br />
extremely relevant as Formula One<br />
seeks to build on the success of last<br />
year’s Grand Prix in Austin.<br />
Exposure to this audience may be the<br />
most important motivating factor for<br />
the majority of brands that invest in the<br />
series, but it is only one of many. B2B<br />
benefits, on-site marketing and image<br />
aspects continue to be highly relevant.<br />
Ultimately, it is about achieving<br />
maximum return on investment, or<br />
on other pre-defined objectives. At<br />
Repucom, we use industry-leading<br />
research, knowledge and experience<br />
to narrow the margin of error in our<br />
clients’ decision-making process.<br />
We provide the insights to give your<br />
marketing activities in Formula One<br />
the competitive edge.<br />
154 l BLACK BOOK <strong>2013</strong>
3Statistics and Insights<br />
Statistics and Insights<br />
Official Data Partner:<br />
USA 9%<br />
Spain<br />
35%<br />
Russia<br />
19%<br />
Japan<br />
10%<br />
Italy<br />
25%<br />
Germany<br />
24%<br />
Brazil<br />
18%<br />
AVID FORMULA ONE<br />
INTEREST IN<br />
SELECTED MARKETS<br />
China<br />
11%<br />
0% 5% 10% 15% 20% 25% 30% 35% 40%<br />
McLAREN ANATOMY OF THE AVID FORMULA ONE FAN<br />
Source: REPUCOM SportsDNA 2012<br />
Basis: Representative, stratified survey of 1,000 16-69 year olds in selected key global markets<br />
BLACK BOOK <strong>2013</strong> l 155
WORDS ‘BEST’ DESCRIBING FORMULA ONE<br />
Honest<br />
Competitive<br />
Exciting<br />
Traditional<br />
Hi-tech<br />
Fan focused<br />
Courageous<br />
Stylish<br />
Passionate<br />
Inspirational<br />
Always<br />
delivers<br />
Innovative<br />
Modern<br />
Prestigious<br />
WORDS ‘BEST’ DESCRIBING FORMULA ONE SPONSORS<br />
Approachable<br />
Caring<br />
Market<br />
leaders<br />
Cutting edge<br />
Premium<br />
Trustworthy<br />
Modern<br />
Attainable<br />
Reliable<br />
Traditional<br />
Desirable<br />
Innovative<br />
Stylish<br />
Customer<br />
focused<br />
156 l BLACK BOOK <strong>2013</strong>
3Statistics and Insights<br />
Statistics and Insights<br />
Official Data Partner:<br />
Despite the proliferation<br />
of races in new markets<br />
across the globe,<br />
traditional Formula<br />
One heartlands like<br />
Germany, Spain and Italy<br />
provide huge chunks of<br />
the sport’s worldwide<br />
television audience<br />
McLAREN Audiences<br />
Region<br />
Share of cumulated live broadcast audience globally<br />
Europe 69.0%<br />
Africa & Middle East 4.1%<br />
Asia-Pacific 6.6%<br />
North America 1.7%<br />
Central & South America 18.6%<br />
McLAREN Top 10 F1 TV markets for all official broadcast formats 2012<br />
Country<br />
Percentage of total cumulated audience<br />
Germany 14.9%<br />
Brazil 10.9%<br />
Spain 10.1%<br />
Italy 10.0%<br />
France 8.7%<br />
UK 7.3%<br />
China 3.0%<br />
Austria 2.6%<br />
South Korea 1.8%<br />
Hungary 1.7%<br />
Other 28.9%<br />
Source: REPUCOM SportsDNA 2012<br />
Basis: Representative, stratified survey of 1,000<br />
16-69 year olds in selected key global markets<br />
BLACK BOOK <strong>2013</strong> l 157
Sebastian Vettel (centre)<br />
and Red Bull Racing<br />
celebrated a ‘triple-double’<br />
in 2012 - winning the<br />
drivers’ and constructors’<br />
championships for the<br />
third year in a row<br />
2012 Drivers’ World Championship<br />
1 Sebastian Vettel 281<br />
2 Fernando Alonso 278<br />
3 Kimi Raikkonen 207<br />
4 Lewis Hamilton 190<br />
5 Jenson Button 188<br />
6 Mark Webber 179<br />
7 Felipa Massa 122<br />
8 Romain Grosjean 96<br />
9 Nico Rosberg 93<br />
10 Sergio Perez 66<br />
11 Nico Hülkenberg 63<br />
12 Kamui Kobayashi 60<br />
13 Michael Schumacher 49<br />
14 Paul di Resta 46<br />
15 Pastor Maldonado 45<br />
16 Bruno Senna 31<br />
17 Jean-Eric Vergne 16<br />
18 Daniel Ricciardo 10<br />
19 Vitaly Petrov 0<br />
20 Timo Glock 0<br />
21 Charles Pic 0<br />
22 Heikki Kovalainen 0<br />
23 Jerome d’Ambrosio 0<br />
24 Narain Karthikeyan 0<br />
25 Pedro de la Rosa 0<br />
158 l BLACK BOOK <strong>2013</strong>
3Statistics and Insights<br />
Statistics and Insights<br />
Official Data Partner:<br />
2012 Constructors’ World Championship<br />
1 Red Bull Racing-Renault 460<br />
2 Ferrari 400<br />
3 McLaren-Mercedes 378<br />
4 Mercedes 303<br />
5 Sauber-Ferrari 126<br />
6 Sahara Force India-Mercedes 109<br />
7 Williams-Renault 76<br />
8 Toro Rosso-Ferrari 26<br />
9 Caterham-Renault 0<br />
10 Marussia-Cosworth 0<br />
2012 Average Qualifying Position<br />
1 Lewis Hamilton 4.3<br />
2 Sebastian Vettel 5.05<br />
3 Mark Webber 5.85<br />
4 Fernando Alonso 6.1<br />
5 Jenson Button 6.45<br />
6 Kimi Raikkonen 7.45<br />
7 Romain Grosjean 7.74<br />
8 Nico Rosberg 9.4<br />
9 Michael Schumacher 9.65<br />
10 Felipe Massa 9.85<br />
11 Pastor Maldonado 10.85<br />
12 Paul di Resta 11.45<br />
12 Nico Hulkenberg 11.45<br />
14 Kamui Kobayashi 11.6<br />
15 Sergio Perez 12.2<br />
16 Bruno Senna 14.25<br />
17 Daniel Ricciardo 14.7<br />
18 Jerome D’Ambrosio 15<br />
19 Jean-Eric Vergne 18.5<br />
20 Heikki Kovalainen 19<br />
21 Vitaly Petrov 20.42<br />
22 Timo Glock 21.4<br />
23 Pedro de la Rosa 21.89<br />
24 Narain Karthikeyan 23.16<br />
BLACK BOOK <strong>2013</strong> l 159
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Section Five<br />
Luxury<br />
5<br />
Introduction: 282<br />
Amber Lounge: 292<br />
Gallery 2012: 300<br />
New York: 306
The perfect mix<br />
With its combination<br />
of exotic locations and<br />
high-speed, high-stakes<br />
action, Formula One has<br />
long attracted a glamorous<br />
following - something<br />
brands have been keen<br />
to tap into since its<br />
commercial age dawned<br />
Formula One’s reputation for glitz<br />
and glamour is long established – few<br />
other pursuits have the same mix of<br />
incredible locations, money, celebrity,<br />
technology, sex, danger and opulence.<br />
Seasoned Formula One business and<br />
lifestyle expert Richard Partridge off ers<br />
his personal take on the allure that has<br />
helped build an empire.<br />
Is there a single sport on the planet<br />
that encompasses the sheer glamour<br />
of the world of Formula One? Nascar<br />
makes a bid but is limited by its<br />
very insular nature. The very highest<br />
echelons of football undoubtedly<br />
flicker with glamour but the light<br />
doesn’t always burn brightly and it’s<br />
still the case that few other sports<br />
retain the smell of power, testosterone,<br />
sex and money that are now<br />
282 l BLACK BOOK <strong>2013</strong>
5Luxury<br />
Luxury<br />
synonymous with Formula One<br />
It is an image that has been<br />
carefully constructed over the years<br />
but one that is now central to the<br />
very nature of the sport – so much<br />
so that the glitz and glamour that<br />
Hollywood takes for granted has<br />
become embedded in the Formula<br />
One brand. It has elevated the sport<br />
from the sports pages and transformed<br />
it into a lifestyle, glamour and fashion<br />
experience that is absolutely unique in<br />
modern culture.<br />
This is now a world that seduces<br />
otherwise sane and successful captains<br />
of industry to invest their hard-earned<br />
millions in a further attempt to<br />
promote their companies and brands<br />
and, moreover, assuage their otherwise<br />
insatiable egos. It’s a world that attracts<br />
the technologically gifted with the<br />
BLACK BOOK <strong>2013</strong> l 283
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traditions of Formula One<br />
on the track, while off it he<br />
leads an outsized lifestyle<br />
complete with a private jet<br />
and, in Nicole Scherzinger,<br />
a popstar girlfriend<br />
promise of unlimited investments,<br />
so they can develop cutting-edge<br />
solutions, and a world that attracts a<br />
circus of sponsors, investors, celebrities<br />
– all of whom feel the need to be at<br />
the heart of a sport that has become a<br />
byword for both celebrity and glamour.<br />
No sport has developed the brand<br />
equity of both technology and<br />
glamour like Formula One and it’s a<br />
powerful and peerless combination<br />
for advertisers and sponsors – an<br />
environment where their brands and<br />
products feed off the feel-good factor<br />
and can then reinvent themselves in<br />
the mind’s eye of the consumer.<br />
Perhaps it’s the element of danger<br />
and risk that attracts the great and<br />
good. Maybe it’s something at the<br />
very heart of the human condition<br />
that draws us to watch our champions<br />
risk their lives in pursuit of riches and<br />
glory. Let’s face it: risk-taking is sexy<br />
and Darwinists and psychologists<br />
would argue that positive evolution<br />
depends on it; as well as this, risk<br />
begets danger and danger attracts us<br />
like moths to a flame.<br />
Formula One has maintained this<br />
position at the high table of sport<br />
and culture from its early days in the<br />
1950s, when Monte Carlo’s Grand Prix<br />
coincided with the annual Cannes Film<br />
Festival. Hollywood and Formula One<br />
then began their enduring relationship;<br />
drivers and film stars mixed business<br />
with pleasure in front of the world’s<br />
press, against a backdrop of sunshine<br />
and ostentation. The world had never<br />
seen the like before.<br />
Their antics on and off the track<br />
fuelled the sport’s reputation and gave<br />
Hollywood and celebrity the perfect<br />
environment to parade and promote<br />
themselves. And, if anything, the<br />
power of this relationship continues<br />
to grow unabated, for we now live<br />
in an increasingly celebrity-obsessed<br />
world. It is a recipe that all Formula<br />
One teams now use: take a celebrity<br />
(preferably a fresh one), mix with<br />
286 l BLACK BOOK <strong>2013</strong>
However far the Formula<br />
One series spreads across<br />
the world, no event quite<br />
typifies its appeal like<br />
the Monaco Grand Prix in<br />
Monte Carlo<br />
sponsors, pour in a little champagne,<br />
add your Formula One driver, mix well<br />
and throw in a few photographers. It’s<br />
guaranteed to work every time.<br />
If you bring along a star to the grid<br />
then the world wants to know about it<br />
– and if you stick them in front of your<br />
car and sponsors then they’ll get their<br />
photo taken: Bingo!<br />
Despite the creeping corporate<br />
sanitisation of the sport the glitz and<br />
glamour lives on through the likes<br />
of Lewis Hamilton, whose daring<br />
move to Mercedes will either be a<br />
masterstroke or condemn him to the<br />
also-rans this season. What we can be<br />
sure of with Lewis is a nerve-jangling<br />
rollercoaster ride along the way from a<br />
driver who is prepared to take the sort<br />
of risks that would have the ghosts of<br />
Ayrton Senna and Gilles Villeneuve<br />
smiling. He is a man who embodies<br />
the true spirit of the sport.<br />
And when he’s finished racing<br />
there’s always his celebrity girlfriend<br />
Nicole Scherzinger to soothe his<br />
fettered brow. However, as both are<br />
global jetsetters, Lewis has to make a<br />
real effort to maintain the relationship<br />
during the season: it’s no Skype-based<br />
liaison, though, for Hamilton has<br />
purchased a new, bright red UK£20<br />
million Bombardier CL-600 private<br />
288 l BLACK BOOK <strong>2013</strong>
5Luxury<br />
Luxury<br />
Formula One<br />
Management chief<br />
executive Bernie<br />
Ecclestone both lives<br />
and nurtures the luxury<br />
lifestyle that pervades<br />
the higher echelons of<br />
the sport<br />
jet to “ease the strain” of his<br />
relationship. Even with a new,<br />
lucrative, contract to his name this is<br />
a big spend – but one that captures<br />
the essence of Formula One and the<br />
fascination of the global audience.<br />
Indeed, the world of corporate<br />
aviation sits cosily alongside Formula<br />
One with a number of drivers<br />
either owning their own plane or<br />
maintaining close relationships with<br />
a manufacturer; Rubens Barrichello<br />
was a shoo-in as an ambassador for<br />
the Brazilian manufacturer Embraer,<br />
Felipe Massa flies around in his<br />
Piaggio Aero and Mr Ecclestone’s<br />
schedule necessitates the use of a<br />
Falcon 7X to transport him around<br />
the globe.<br />
The sport’s new partnership with<br />
Rolex, which begins this season, is<br />
further evidence that Formula One is<br />
in no danger of losing its reputation as<br />
the global showcase for glamour.<br />
Nonetheless, there are pretenders<br />
waiting in the wings should the sport<br />
ever lose the elements of excitement<br />
and risk that have defined it for so<br />
long; those that run the sport in the<br />
coming years would be well served to<br />
never forget where the sport came from<br />
and what it stands for if they want to<br />
ensure its future.<br />
BLACK BOOK <strong>2013</strong> l 289
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Lights, Amber, Action<br />
Since its launch at the<br />
Monaco Grand Prix in 2003,<br />
Amber Lounge has become<br />
established as one of the<br />
leading promoters of postrace<br />
events in Formula One<br />
It is now ten years since Sonia<br />
Irvine held the first Amber Lounge<br />
event in Monaco over the 2003 race<br />
weekend. Since then Amber Lounge<br />
has become the go-to venue, at a<br />
cherry-picked selection of Formula<br />
One’s most prized locations around<br />
the world, for drivers, teams, sponsors,<br />
executives and celebrities. Fine dining<br />
and top DJs, unlimited alcohol, and<br />
hand-picked venues, designed to be<br />
both discreet and spectacular, have<br />
combined to turn Amber Lounge<br />
into one of Formula One’s premier<br />
luxury brands.<br />
Irvine began her career in Formula<br />
One in the 1990s as physiotherapist<br />
to her brother, the Jordan, Ferrari and<br />
Jaguar driver Eddie. Her move into<br />
delivering top-level luxury hospitality<br />
events began around the Monaco<br />
Grand Prix, but Amber Lounge has<br />
since expanded to Singapore, home<br />
of Formula One’s first night race; Abu<br />
Dhabi, where a combination of desert<br />
and chilled-out waterfront has proved<br />
highly popular; and, in <strong>2013</strong>, Austin,<br />
Texas. In an exclusive conversation with<br />
the Black Book, Irvine reflects on the<br />
development of Amber Lounge, the<br />
hospitality industry in Formula One<br />
and why the sport continues to appeal<br />
to sponsors and celebrities.<br />
Sonia, can you believe it’s been<br />
ten years?<br />
We were looking at photographs from<br />
2003 and back then we thought, jeez,<br />
we did a good job, and then you look<br />
at the photographs and you think,<br />
my goodness, we’ve come on so much<br />
in the space of ten years in what we<br />
provide, in our production and how we<br />
make things look now. We’ve evolved<br />
and the brand’s gone from strength to<br />
strength. Whereas it was me and one<br />
other person when I started it, now I’ve<br />
got a team of 14 around me and we<br />
all have our own specific jobs. Things<br />
obviously have got better and we pay<br />
more attention to detail, really. When<br />
I started it there was only one event<br />
and now we do four– we’ve now got<br />
Singapore, Abu Dhabi and then Austin<br />
is the new one to us this year. We go<br />
out there four or five times before the<br />
event to make sure everything will<br />
work, the selling and everything.<br />
In what other ways have the<br />
brand and business evolved?<br />
Everything’s in-house because I’m<br />
sort of a control freak. We’ve brought<br />
marketing in-house and when you do<br />
things like that you just wonder how<br />
you ever did it before, when it was<br />
out-of-house. We’re more responsive<br />
now, so if sponsors come on board<br />
and want to change logos in a certain<br />
way on their branding we can do<br />
that very, very quickly. We now have<br />
a sponsorship department which we<br />
never had before. We’ve a PR person,<br />
which I never had before. Everything’s<br />
just got more complicated, but for the<br />
right reasons really.<br />
292 l BLACK BOOK <strong>2013</strong>
Each event aims to provide<br />
the kind of hospitality for<br />
which the sport is famous<br />
and, with performances like<br />
that of Taio Cruz in Monaco<br />
in 2011 (below), the best<br />
after-hours fun the sport<br />
has to offer<br />
What was the initial motivation,<br />
the gap in the market that you<br />
spotted, back in 2003?<br />
When I was a physiotherapist for my<br />
brother in Formula One we’d finish<br />
the season in Brazil and we would all<br />
be driving around looking for a party<br />
– and we couldn’t find one. In those<br />
days, Ferrari had their own party and<br />
McLaren did their own and I suppose<br />
there was more money around in those<br />
days as well so sponsors would pay for<br />
parties. But there was nowhere where<br />
we could all come together. It was very<br />
separate. Formula One is a big family<br />
and we travel around the world, every<br />
two weeks you meet up somewhere<br />
else but there was nowhere where we<br />
all just came together. It was then<br />
that the seeds were sown. I was lucky<br />
enough in that when I left working<br />
for my brother, I continued working<br />
in Formula One and did sponsorship<br />
stuff. I worked across all of the teams<br />
and with different drivers, so I didn’t<br />
just become known as Sonia, Eddie<br />
Irvine’s sister – I was doing my own<br />
thing in Formula One. They knew<br />
I was a hard worker and they knew<br />
I would deliver and I wouldn’t say<br />
things I couldn’t deliver, so there was a<br />
trust that built up – and I think partly<br />
people felt sorry for me because they<br />
knew how hard I worked with my<br />
brother! They wanted to support me.<br />
What did you learn from that very<br />
first event?<br />
We knew we had to sell tables and<br />
we thought initially when I sold all<br />
the tables that the club would be full.<br />
Then you realise after the first night<br />
that, actually, if there aren’t people on<br />
standing passes the club doesn’t look<br />
full. The pass system then evolved.<br />
When I started doing it, nowhere did<br />
people really do bottles on the tables<br />
– it was a very unusual system to run.<br />
I didn’t have a background in bars or<br />
clubs, my background was in physio<br />
and management, and I didn’t see how<br />
you could trust people with money<br />
crossing hands.<br />
The other thing is there is always an<br />
awkward point at the end of the night:<br />
who pays the bill? It’s so awkward, so<br />
the idea was that people wouldn’t be in<br />
that position: they paid their amount<br />
and then they drank as much as they<br />
wanted. I’ve always wanted them to<br />
drink as much as they want – it’s not<br />
that I turn to my waiters and say,<br />
“Hold off on the alcohol,” or, “Don’t<br />
serve them so quickly,” because I want<br />
people to have a fantastic time. I want<br />
them to leave Amber Lounge thinking<br />
it was the best party they’ve ever had<br />
and wanting to go back the next<br />
year. That was something I learned.<br />
There had to be people in on standing<br />
passes, unlimited alcohol. One lesson<br />
I learned early on: we had a client who<br />
bought a lot of tables for one night in<br />
Amber Lounge and then they pulled<br />
out at the last minute – and it was<br />
really make or break for me. I swore to<br />
myself that I would never put myself<br />
in that position again, where I’d be<br />
reliant on one client. That forced me<br />
to go out and expand who we sold to,<br />
so that if one sponsor dropped out<br />
it didn’t matter because there’s other<br />
sponsors or individuals.<br />
294 l BLACK BOOK <strong>2013</strong>
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5Luxury<br />
Luxury<br />
The first year I did Amber Lounge<br />
I was so lucky that teams and drivers<br />
supported me. Ron Dennis bought<br />
passes for all his engineers and<br />
mechanics to come and celebrate. I was<br />
really lucky to have the support I was<br />
given in Formula One, I couldn’t have<br />
done it without that.<br />
Who are your main clientele?<br />
Amber Lounge parties<br />
attract Formula One<br />
insiders as well as<br />
celebrities like Kim<br />
Kardashian (above), who<br />
attended the Monaco<br />
event in 2012, and the<br />
Minogue sisters, Kylie<br />
(left) and Dannii (right),<br />
who were at Abu Dhabi<br />
Nights are different, very different.<br />
Saturday nights tend to be a lot of<br />
sponsors and team people. That’s<br />
good because there’s high-end people<br />
there: CEOs, CFOs. There’s a lot of<br />
networking and business that goes on<br />
in Amber Lounge. The other thing I<br />
do that’s different is our table set-up.<br />
If we have a big group on Saturday<br />
night – 250 people – we put a lot of<br />
thought into how we’re going to do<br />
the table set-up, so that they can mix<br />
and mingle. If you’ve a client who has<br />
a group of 40 in there we give them<br />
the space – my furniture’s not fixed,<br />
so I can create for them their own<br />
space, but when they want to go to the<br />
dancefloor or bar they can. Ultimately<br />
they have their own space to do the<br />
business they want to do. In life a lot of<br />
business is done outside the office and<br />
not necessarily inside the office. Sunday<br />
night in Monaco, for example, is 50:50.<br />
There are sponsors and 50 per cent<br />
local people in there.<br />
I’ve always tried to keep Amber<br />
Lounge quite neutral and be careful of<br />
what sponsors we bring on board so<br />
that we don’t isolate teams or drivers.<br />
It’s quite political in that way, but I’ve<br />
been doing Formula One now for 18-<br />
odd years and I love the world that we<br />
work in. Bernie’s created this amazing<br />
world. You often find a lot of people<br />
leave Formula One because they’re<br />
tired of travelling and there’s too much<br />
stress, and then they invariably come<br />
back because they love the travelling<br />
and they love the stress and the fact<br />
that when you want something you<br />
do it straight away. It’s a very<br />
responsive world.<br />
You’ve expanded now into Singapore<br />
and Abu Dhabi – I guess the venues<br />
all have their own characteristics?<br />
I love the Monaco race. We have an<br />
Amber Lounge boat, for example, and<br />
whenever you come into the harbour<br />
on a tender and go to the boat, the<br />
atmosphere always brings a tingle to<br />
my body – it does. But, for example,<br />
a lot of the drivers love Singapore and<br />
that’s because we stay on European<br />
time – in other words they’re going<br />
out partying and it’s 8pm and they<br />
party at 6am, but in reality it’s only<br />
midnight. They have so much more<br />
energy because we’re not on Singapore<br />
time. Then you have the people who<br />
love the set-up we have in Abu Dhabi,<br />
because we build on the water and it’s<br />
a very relaxed atmosphere. We’ve got<br />
a lot of tables outside on the terrace,<br />
so they prefer that side. We try and<br />
cater for people’s wants – apart from<br />
Singapore where you can’t have tables<br />
outside we try and give people a<br />
choice; do they want a table on the<br />
dancefloor, or a table in the corner?<br />
Kimi [Raikkonen] sent me a text<br />
after he won in Abu Dhabi and said,<br />
“I need another table.” No stress,<br />
BLACK BOOK <strong>2013</strong> l 297
Amber Lounge founder<br />
Sonia Irvine (below right)<br />
and her team are able<br />
to cater to the individual<br />
needs of guests like Lotus<br />
driver Kimi Raikkonen<br />
(below left) at each event<br />
I’d already increased his table. He<br />
said, “Where’s my table?” And I said,<br />
“Think of the worst table I have in the<br />
house, Kimi, and that’s where I’ve put<br />
you – in the corner where no one can<br />
see you.” He said, “Perfect,” because<br />
that’s where he likes to be and I know<br />
that. Everybody likes different things.<br />
If clients come and say they want a<br />
different menu, or this or that, we try<br />
and cater for it. We don’t say, “No.”<br />
We say, “Let’s see if we can.”<br />
You’re doing Austin this year –<br />
what do you make of it?<br />
I went to have a look last year, because<br />
I wasn’t convinced about it, truth be<br />
told. I was gearing myself up to do New<br />
York – we had the venue and everything<br />
organised. And then it didn’t happen.<br />
So I went to Austin, because I do<br />
think Amber Lounge should go to the<br />
States. It was a fantastic race. I wasn’t<br />
that impressed with what was there<br />
nightlife-wise. People were saying they<br />
were a VIP experience, that they were an<br />
Amber Lounge, when Amber Lounge<br />
wasn’t there. I came back and said, “This<br />
would be a good event for us.” I had so<br />
many drivers and people who said they’d<br />
buy tables. It was quite nice being there<br />
not doing it the first year, because I’ve<br />
always tended to do things the first year.<br />
It made people realise Amber Lounge is<br />
good and we deliver what we say we’re<br />
going to deliver. The hard thing about<br />
Texas has been finding the venue where<br />
we can run until 4am, but we have that<br />
one resolved. We will be a private party<br />
there and once we arrive there you will<br />
not be able to buy tickets to Amber<br />
Lounge, we will be sold out. We will do<br />
a smaller event this year; we’ll be sold<br />
out before we reach Texas.<br />
How do you assess the current luxury<br />
hospitality market in Formula One?<br />
I can only talk for me and Amber<br />
Lounge: I honestly don’t know any<br />
other sport that’s like Formula One,<br />
that reacts like Formula One, that<br />
has the hospitality to the level that<br />
we have it and that gives the coverage<br />
to the sponsors. At the end of the<br />
day there’s only 22 drivers and it is<br />
exclusive. Bernie Ecclestone is a very<br />
clever man and he’s made a sport<br />
that people aspire to; it’s difficult for<br />
sponsors to get into the paddock, etc.<br />
2008, I think, was a great year for<br />
everybody – teams, sponsors – and<br />
then we obviously had the [financial]<br />
crash. 2009 was hard but I threw<br />
more staff at stuff and employed more<br />
people, because my view was if people<br />
have got money I want them to be<br />
spending it in Amber Lounge and<br />
knowing about Amber Lounge. I made<br />
sure the staff I had were as good as I<br />
could get them – each year for us has<br />
just got better and better and if you<br />
look at the sponsors signed in Formula<br />
One for this year – Burn, BlackBerry,<br />
all of these global brands coming into<br />
Formula One – there must be a reason<br />
for it. The good thing is when they<br />
come into Formula One, that’s great<br />
for Amber Lounge.<br />
For more information on Amber<br />
Lounge events in <strong>2013</strong> visit<br />
www.amber-lounge.com<br />
298 l BLACK BOOK <strong>2013</strong>
Racing through the port of Valencia<br />
Fans in Spain get a look at the European Grand Prix<br />
Waiting for Felipe Massa in Korea<br />
Fireworks mark the end of another Singapore Grand Prix<br />
A big Texas welcome in 2012<br />
Tamara Ecclestone steps out in Monaco<br />
Former Ferrari idol Eddie Irvine<br />
Actor Cuba Gooding Jr and Star Wars creator George Lucas<br />
Prince Albert of Monaco with his wife, Princess Charlene<br />
F1 <strong>2013</strong> Gallery<br />
On the road again<br />
Red Bull Racing and Sebastian Vettel were champions again in the most global Formula One<br />
season yet, with Austin, Texas the latest stop for the United States Grand Prix. As ever, there<br />
were plenty of famous faces to spot along the way.<br />
300 l BLACK BOOK <strong>2013</strong>
The Tifosi out in force again at Monza<br />
Jessica Michibata and Jenson Button in Belgium<br />
The spectacular Yas Marina hotel in Abu Dhabi<br />
Canada was a popular stop once more<br />
The legendary Michael Schumacher bade farewell again<br />
Superstar actor Will Smith in Monte Carlo<br />
Fabiana Flosi and partner Bernie Ecclestone<br />
It was another picture perfect year for Red Bull Racing<br />
BLACK BOOK <strong>2013</strong> l 301
The grid girls get ready for the Italian Grand Prix<br />
A winning return for Kimi Raikkonen in Abu Dhabi<br />
Midnight in Paris stars Owen Wilson and Adrien Brody in Malaysia<br />
Rock star Lenny Kravitz exchanges opinions with Hamilton<br />
Lining up for the United States Grand Prix<br />
A new McLaren in Singapore for Lewis Hamilton<br />
Formula One from 65 floors at Singapore’s Swissotel The Stamford<br />
Pre-race entertainment on the Silverstone grid<br />
F1 <strong>2013</strong> Gallery<br />
302 l BLACK BOOK <strong>2013</strong>
Lewis Hamilton enjoys his win at the Circuit of the Americas<br />
Actress Vanessa Hudgens<br />
Mark Webber off duty in South Korea<br />
Excitement builds for Formula One’s Austin debut<br />
Brazilian soccer legend Ronaldo with a gift for Bernie Ecclestone<br />
Singer Katy Perry’s concerts are quieter affairs<br />
Rush director Ron Howard<br />
Daniel Ricciardo cruises through the Valencia streets in his Toro Rosso<br />
BLACK BOOK <strong>2013</strong> l 303
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New horizons in New York<br />
Sebastian Vettel took a<br />
drive around New Jersey’s<br />
proposed Grand Prix street<br />
circuit in a road car last<br />
year, and while the first race<br />
there has been postponed<br />
until 2014 the prospect<br />
continues to excite the<br />
Formula One community<br />
Formula One could hardly have asked<br />
for a better return to the United States.<br />
The inaugural Grand Prix at the Circuit<br />
of the Americas (COTA), a purposebuilt<br />
facility on the fringes of lively<br />
Austin, was a huge success in its first<br />
year. Texas, however, is not the limit<br />
of the sport’s ambition in what has<br />
traditionally been one of the markets it<br />
has found trickiest to crack.<br />
In October 2011 New Jersey<br />
politicians announced that a Grand<br />
Prix would take place on a street<br />
course, against the backdrop of<br />
Manhattan’s skyline, on the banks<br />
of the River Hudson. “These races<br />
will showcase Weehawken and West<br />
New York as well as our state and<br />
region to an international audience,<br />
while strengthening both the local<br />
and regional economies,” said New<br />
Jersey governor Chris Christie as the<br />
event was announced. “This is another<br />
example of how New Jersey remains<br />
a leader in hosting marquee national<br />
and international events like the<br />
Super Bowl, NCAA men’s basketball<br />
tournament and the Ironman triathlon<br />
in various parts of our state.”<br />
Although the race had been pencilled<br />
in for a <strong>2013</strong> debut it will now not<br />
take place until at least 2014, with<br />
local delays in obtaining the necessary<br />
permissions for the street circuit<br />
blamed. However, there is a great will<br />
to make the event a reality in 2014,<br />
when a June date has been selected,<br />
given the myriad commercial and<br />
marketing opportunities staging a race<br />
in the world’s largest media market<br />
presents. “I think New York would be<br />
massive,” says Sonia Irvine, the founder<br />
of Amber Lounge, Formula One’s go-to<br />
post-race events company.<br />
“The teams were looking forward to<br />
going there, the drivers were looking<br />
forward to going there. The track was<br />
fantastic, the view was great. There’s a<br />
lot of work being put into New York<br />
happening and I think it’d be such a<br />
shame if it didn’t happen. The thing<br />
with Formula One is it’s an expensive<br />
event to put on and run, so there’s a<br />
lot of things to be worked out on that<br />
side. The promoters were very positive,<br />
they wanted to bring Formula One to<br />
Jersey, to New York and a lot of people<br />
were interested.”<br />
A 3.2-mile road course has been<br />
selected to host the Grand Prix and<br />
some 100,000 people would be<br />
expected to attend. The event will be<br />
privately financed, with no subsidies<br />
from either local or state government.<br />
The driving forces behind the race are<br />
Leo Hindery, the founding chairman<br />
and former chief executive of regional<br />
sports network YES, and Humpy<br />
Wheeler, a former president and general<br />
manager of Lowe’s Motor Speedway.<br />
Should the contractual and<br />
logistical details be ironed out, the<br />
event promises much: in 2012 world<br />
champion Sebastian Vettel drove laps<br />
of the proposed circuit in an Infiniti<br />
road car and was enthused by the<br />
prospect of returning with his Formula<br />
One machine. “The circuit is great,”<br />
the German said. “One section is a<br />
bit like Montreal with a long fast<br />
straight but it’s also quite up and<br />
down, which is a bit like Spa. New<br />
York is such a great city with a great<br />
energy. It will be great to have a<br />
Formula One race here – I think there<br />
will be some good bars to go to after<br />
the race!”<br />
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