Discussion
It's an intriguing move.
F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
Muzzer79 said:
It's an intriguing move.
F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
According to google there are still some big value costs outside of the cap.... Drivers salaries, the top 3 earning employees salaries, bonuses, marketing, property, etc. F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
Depending on how much surplus cash is generated by existing sponsorship revenue this deal could be very attractive.
SmoothCriminal said:
How much is he actually contributing, he's gone in with bigger names like Liverpool owner.
Sounds like they're just using his name like Lewis was supposedly buying Chelsea.
Also wasn't Lewis' name mentioned as an investor in the JR proposal for the purchase of Man Utd?Sounds like they're just using his name like Lewis was supposedly buying Chelsea.
Dynion Araf Uchaf said:
he's gone on record in the past as saying he is 'not a car man' so not me. But I guess if you have billions you can fritter it away on an F1 team.
I am not expecting a 'welcome to Chipping Norton' Disney series any time soon.
I think you should. I am not expecting a 'welcome to Chipping Norton' Disney series any time soon.
This is now a pattern.
Buy a crap team in a big sport. Be Ryan Reynolds. Crowd goes wild. Stick it on tv for people who don’t watch the sport. Be Ryan Reynolds a bit more. $$$$$$$
Edited by SpeckledJim on Monday 26th June 18:01
jph98 said:
Muzzer79 said:
It's an intriguing move.
F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
According to google there are still some big value costs outside of the cap.... Drivers salaries, the top 3 earning employees salaries, bonuses, marketing, property, etc. F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
Depending on how much surplus cash is generated by existing sponsorship revenue this deal could be very attractive.
Keeping the costs known but having unlimited upside driven by marketing... sounds like a solid business model to me.
InformationSuperHighway said:
jph98 said:
Muzzer79 said:
It's an intriguing move.
F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
According to google there are still some big value costs outside of the cap.... Drivers salaries, the top 3 earning employees salaries, bonuses, marketing, property, etc. F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
Depending on how much surplus cash is generated by existing sponsorship revenue this deal could be very attractive.
Keeping the costs known but having unlimited upside driven by marketing... sounds like a solid business model to me.
Everyone already on the inside wins every time. No jeopardy, no relegation, no real risk at all. Just solid, predictable incomes you can borrow against. Kinda nothing like sport at all, really.
SpeckledJim said:
InformationSuperHighway said:
jph98 said:
Muzzer79 said:
It's an intriguing move.
F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
According to google there are still some big value costs outside of the cap.... Drivers salaries, the top 3 earning employees salaries, bonuses, marketing, property, etc. F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
Depending on how much surplus cash is generated by existing sponsorship revenue this deal could be very attractive.
Keeping the costs known but having unlimited upside driven by marketing... sounds like a solid business model to me.
Everyone already on the inside wins every time. No jeopardy, no relegation, no real risk at all. Just solid, predictable incomes you can borrow against. Kinda nothing like sport at all, really.
There is also the fact that winning does bring greater levels of sponsorship ship, therefore profit down the line - so plenty of reason for the teams board and management to 'still care' and bevas competitive as possible.
Definitely the case that anyone incoming to the sport now needs to buy an existing team, not start their own. This alpine deal demonstrates that even a middling F1 team is now worth about a billion quid! But of course it is, a machine that makes money and increases in value perpetually is never going to be cheap to buy, not least when there are only ten of them..
TheDeuce said:
SpeckledJim said:
InformationSuperHighway said:
jph98 said:
Muzzer79 said:
It's an intriguing move.
F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
According to google there are still some big value costs outside of the cap.... Drivers salaries, the top 3 earning employees salaries, bonuses, marketing, property, etc. F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
Depending on how much surplus cash is generated by existing sponsorship revenue this deal could be very attractive.
Keeping the costs known but having unlimited upside driven by marketing... sounds like a solid business model to me.
Everyone already on the inside wins every time. No jeopardy, no relegation, no real risk at all. Just solid, predictable incomes you can borrow against. Kinda nothing like sport at all, really.
There is also the fact that winning does bring greater levels of sponsorship ship, therefore profit down the line - so plenty of reason for the teams board and management to 'still care' and bevas competitive as possible.
Definitely the case that anyone incoming to the sport now needs to buy an existing team, not start their own. This alpine deal demonstrates that even a middling F1 team is now worth about a billion quid! But of course it is, a machine that makes money and increases in value perpetually is never going to be cheap to buy, not least when there are only ten of them..
The only people who'd design a sport this way are the team owners. The last thing they want is a few bad decisions to lead to them losing their position in the sport to another, better-run team who didn't make the same mistakes.
Hence the closed shop arrangement. To football's immense credit (not something anyone says often), when the b
ds who own the big clubs tried to do exactly this, football in general went fking berserk and forced them to u-turn. But its happened in F1 basically without a whisper. Reynolds can see what happened in all the other American sports will happen in the newest American sport - F1. A team that costs £900m today will be worth a good few billion in a few years now that America has woken up to it. And it doesn't even matter if they always come last, since the money from all the eyeballs watching Ferrari and Red Bull just gets shared out between the Lucky 10 and there's zero risk.
Edited by SpeckledJim on Monday 26th June 21:47
SpeckledJim said:
InformationSuperHighway said:
jph98 said:
Muzzer79 said:
It's an intriguing move.
F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
According to google there are still some big value costs outside of the cap.... Drivers salaries, the top 3 earning employees salaries, bonuses, marketing, property, etc. F1 has a cost cap, so selling a stake in the team does not give Alpine more money with which to add performance.
It gives them EUR 200m, so it's not to be sniffed at - they are basically racing for free for a while - but other than liquidating some cash (which they surely don't need) I'm struggling to see an upside for Alpine unless they think the value of the team may come down (pending recession?)
Depending on how much surplus cash is generated by existing sponsorship revenue this deal could be very attractive.
Keeping the costs known but having unlimited upside driven by marketing... sounds like a solid business model to me.
Everyone already on the inside wins every time. No jeopardy, no relegation, no real risk at all. Just solid, predictable incomes you can borrow against. Kinda nothing like sport at all, really.
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