THE ONE driver–team pair that I would never write off would be Fernando Alonso and Ferrari and if you happened to witness their victory in Sepang in the 2012 Malaysian Grand Prix, I am sure you would nod in agreement. Alonso managed the unthinkable and attained the unimaginable by scoring Ferrari’s first win of the 2012 Formula1 season. Why do I sound so surprised? Because Ferrari’s 2012 challenger, the F2012, has been struggling for pace in the pre-season tests and the opening rounds of the season making it extremely challenging for the team to qualify for Q3 of qualifying, leave aside securing pole positions and winning races. So how did they win?
Alonso’s victory ahead of the faster Red Bulls and Mclarens was a result of a special effort from the driver and better tyre strategy from the team and above all, luck. I shall leave aside the intricate performance details for you to read in a race report. Joining Alonso on the podium was Sauber’s Sergio Perez, who claimed his first Formula1 podium finish and Mclaren’s Lewis Hamilton, who was the overnight pole sitter. Perez, a member of Ferrari’s Driver Academy, could well be Massa’s replacement in 2013 after the Brazilian managed only a dismal 15th place finish.
The Malaysian Grand Prix was also Narain Karthikeyan’s first race of the season as he managed to squeeze a laptime just inside the 107% target time and qualify for the race. While the Indian racer started the race from 24th and last, a clever tyre strategy (HRT were the only cars who started on full wets at the start) saw him run in the top 10 till the race was suspended due to extreme wet conditions.
While the HRTs managed to qualify and finish the Malaysian GP, the team was overall 7 seconds slower than the fastest car in qualifying and about 6 seconds off in race pace. In my previous column, I had shared my views on TATA associating with the slowest team in Formula1 and what it does for their brand image globally. Karthikeyan was involved in two clashes on track, one each with Jenson Button and Sebastian Vettel. The clashes were more due to lack of pace in the F112 than driver error.
However, a post-race penalty of 20 seconds saw Karthikeyan demoted to 22nd and last even though he finished the race ahead of his team-mate Pedro de la Rosa. In my opinion, the Stewards were unfair in penalizing Karthikeyan even after Button accepted blame for his collision. As for Vettel, while he thought it was cool to call Karthikeyan a ‘cucumber’, his team should make him aware that his collision with Karthikeyan wasn’t entirely the Indian’s fault!
As the season progress, HRT will need to embark on a steep development curve if they were to match the pace and beat their nearest competitors Marussia and Caterham. The question really would be – do they have the budgets for in-season development?
On the other hand, Sahara Force India secured double points finish in the race with Paul di Resta finishing 7th and Nico Hulkenberg, 9th. The team added a valuable 8 points to their tally which will help them strengthen their position in the super competitive mid-field pack.
In qualifying, P12 to P16 were separated by a tenth of a second and this included the Sahara Force India drivers. It is difficult to confirm the pecking order for the mid-field teams, but this is where all the action for 2012 is going to be.
As interesting as Alonso’s race win, Bernie Ecclestone spiced up the action off-track. The sport of Formula1 relies on a super confidential Concorde Agreement which basically defines the commercials involved in the sport for the promoters and the participating teams. This document explains in detail the earnings via split of revenue for each team basis their championship positions in the sport and more. The existing Concorde Agreement was to conclude at the end of the 2012 season and hence the teams and the FOM have been involved in hectic discussions and negotiations to come to an agreement of terms for the new Concorde Agreement which is expected to last from 2013 to 2020.
As announced by Ecclestone, ‘majority’ of the teams have agreed to their terms for the contract and these include Ferrari, Red Bull Racing and Mclaren. One also believes that the mid-field teams Sauber, Lotus, Sahara Force India and Toro Rosso have agreed in principle. Interestingly and as per speculation, the two teams who are yet to agree with the terms are Williams, one of Formula1’s oldest privateer teams, and Mercedes AMG, one of the two manufacturer teams on the grid.
The disagreements are expected to be over ‘lack of equality’ as per reports since the new clauses offer cash bonuses to teams who won Constructors’ titles since 2000, haven’t changed their name since 2000 and for teams who had won consecutive titles in the sport and more. These clauses benefit Ferrari, Red Bull Racing and Mclaren over Williams and Mercedes. Watch this space for more as more will unfold with respect to the new Concorde Agreement with Mercedes hinting at legal action and / or quitting from the sport altogether.
Keeping the issues of the agreement aside, one can now make much sense over Ferrari and Red Bull’s exit from the Formula One Teams Association (FOTA) late in 2011. Speculation is rife that these two teams have been offered preferential financial terms and potential seats on the board of Formula1’s holding company. Hence, breaking the unity of the teams was important for the discussions of the new Concorde Agreement to go forward. A good old tactic of ‘Divide and Rule’?
And if you are an ardent Formula1 fan and wish to own a pie of the sport that too might be possible as there are rumours that Formula1 is exploring options to go public via Singapore and launch an initial public offering. Formula1’s majority owner, CVC Capital Partners Ltd. has reportedly appointed Goldman Sachs Group to evaluate their Formula1 empire.
For those really considering this investment, I must share with you that Formula1’s profit after tax is expected to cross $325 million this year as per Formula Money’s reports. This is also the first time that the sport’s bottom line has crossed the $300 million mark, operating on a net profit margin of 16%.
While this is all speculation yet, anyone who can advise if this investment would be well worth the money?
