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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 />

London EC1Y 2BP, UK<br />

Tel: +44 (0) 207 549 3250<br />

Fax: +44 (0) 207 871 0102<br />

Email: info@sportspromedia.com<br />

Web: www.sportspromedia.com<br />

(SportsPro Media Ltd is part of the<br />

Henley Media Group Ltd -<br />

www.henleymediagroup.com)<br />

<strong>NO</strong>TICES: Black Book is published annually.<br />

This is the eighth edition. Printed in the EU.<br />

SUBSCRIPTIONS: Single copies of the Black Book<br />

<strong>2013</strong> are available at a cost of UK£90, US$150 €103<br />

and delivered anywhere in the world at no extra charge.<br />

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EDITORIAL COPYRIGHT: The contents of this<br />

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Copyright or reproduction may only be carried out with<br />

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BLACK BOOK <strong>2013</strong> l 3


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Temporary<br />

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Automotive Industrial Personnel


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the automotive industry, the car trade, fleet<br />

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It is estimated that the world’s knowledge<br />

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of being able to face the professional challenges<br />

of the future with confidence.


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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KASPERSKY<br />

US $2m<br />

SANTANDER<br />

US $40m<br />

HUBLOT<br />

US $1m<br />

SHELL<br />

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 />

64 l BLACK BOOK <strong>2013</strong>


1Team by Team <strong>2013</strong><br />

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 />

118 l BLACK BOOK <strong>2013</strong>


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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 />

122 l BLACK BOOK <strong>2013</strong>


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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 />

World Touring Car Championship.<br />

124 l BLACK BOOK <strong>2013</strong>


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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 />

126 l BLACK BOOK <strong>2013</strong>


2Circuits<br />

Circuits<br />

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 />

128 l BLACK BOOK <strong>2013</strong>


2Circuits<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 />

130 l BLACK BOOK <strong>2013</strong>


2Circuits<br />

Circuits<br />

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 />

132 l BLACK BOOK <strong>2013</strong>


2Circuits<br />

Circuits<br />

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 />

134 l BLACK BOOK <strong>2013</strong>


2Circuits<br />

Circuits<br />

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 />

136 l BLACK BOOK <strong>2013</strong>


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 />

The perfect embodiment of world-class service and hospitality, Taj Palace’s unrivalled<br />

service and location along with well appointed rooms make it stand above the rest.<br />

Designed by legendary architect Walter George, Vivanta delivers the ultimate in<br />

urban relaxation and is all set to charm you with its colonial look.<br />

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 />

138 l BLACK BOOK <strong>2013</strong>


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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 />

140 l BLACK BOOK <strong>2013</strong>


2Circuits<br />

Circuits<br />

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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Mercedes driver Lewis<br />

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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 />

306 l BLACK BOOK <strong>2013</strong>


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