Berger thinks budget cap is good for F1

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Former driver-turned-team-manager Gerhard Berger thinks the budget caps will ultimately be good for F1. Speaking to Auto Motor und Sport, Gerhard suggested that teams will see the wisdom of a reduced budget and the reality of FOM’s high price tags will necessitate lower distributions of revenue for the teams. This in itself will be a driving factor for teams to accept less money as a reality in the sport.

That’s relative of course because if FOM take in 40% less revenue in 2010 than in the past, the portion distributed to the teams (50% has been suggested) would be less. FOTA has recently argued that the teams should be given more of the TV revenue money and one has to assume they realized that the total amount generated will be lower thus they need for of the share. Bernie realizes this as well and CVC, the commercial rights holder, has debt to service so as F1’s money well dries up; who will be standing? Perhaps the budget cap is not something Max felt compelled to suggest but ultimately had to suggest given revenue projections for F1’s future potential?

Gerhard said:

“Let’s wait and see what happens when the big sponsor contracts run out,” Berger continued. “If you then get a deal for 10 per cent (of the previous value) you will be happy.

“The next step is the Bernie Ecclestone income: he can’t possibly keep the prices of the organisers and the TV companies the same, so the teams won’t be getting 30 million but only 10 million.”

He also believes that if the two-tier budget cap system begins in 2010, it will not be long before the big-spending manufacturers join in.

“If someone spending only 45 million is just as good as you, or better than you, when you’re spending 300 million, then the executive committee will soon be asking, ‘why aren’t we doing this with 45 million?'” said Berger.

~source GMM.


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