Forum topic: Financial inbalance

Deleted member

698 races

22 championships

107 wins

238 podiums

Current team

Is it just me or is it got almost impossible to run a team at a high level without loosing a lot of money every week?

The issues I see:
a, Fans do not pay much for over a season
They used to be a big part of the income until season 22 (approx 20-50%, based on the result in the race)

b, cost for drivers and staff increased dramatically


In my point of view the financial balance is not maintainable any longer with a performing team.

Even the costs of letting people go is far to high, based on wage and remaining run time of the contract.
August 17, 2020 10:37 am

Bahrain Nelson Dog

730 races

13 championships

70 wins

237 podiums

Current team

Likewise - it's going to get to the stage with drivers that a team develops them as youth drivers, uses them as main drivers for a season or two, then has to let their contracts expire because of crazy wage demands. Same with staff, get them cheap then let them go once their demands get ridiculous.

On the other hand, it's a challenge - but only if every team is in a similar position (i.e. not with multiple hundred millions in the bank).
August 17, 2020 01:47 pm

Bahrain Nelson Dog

730 races

13 championships

70 wins

237 podiums

Current team

Plus the problem with scaling prize money with division is that it makes it harder for newly promoted teams to compete with established teams in their new division, as they will have less prize money from the previous season. And if staff win bonuses aren't also scaled, then relegated teams are really going to struggle financially. Not sure this has been fully thought through.
August 18, 2020 01:09 pm

Deleted member

698 races

22 championships

107 wins

238 podiums

Current team

prize money scaling...
pro - it is less attractive to sandback to make easy money in div 3
con - it is dangerous for teams that get relegated cause of faulty suppliers but with a full blown hq and expensive staff

release clause for relegation does not work as well - people do not leave the team when the team gets relegated - the only thing that happens is that the "allow to leave immediately flag" is activated. when a person has a long term contract that does mean nothing because most persons start negotiation in the last season of the contract.

I try to reduce costs and hire cheap drivers/staff, even when it means that I am in danger of getting relegated - but that would mean that I need to downsize the hq because I will get even less money and that would weaken my team additionally - in the long run I can win div 1 when all other teams are broke - but I don't see much fun in that.

August 18, 2020 08:09 pm

Belgium Frank Van Laere Pitwall Administrator

Lokeren

274 races

1 championships

9 wins

31 podiums

Current team

Belgium Skylark Racing
Division 3.2

I'm currently working something out which acts as a replacement for the fans income. The fans income was never supposed to be that high, and I have always wanted to do something different with that. I'll give some more info soon when I have more information.
August 19, 2020 09:08 am

Japan Robert Bouchard

Shinshiro, Aichi, Japan

419 races

5 championships

16 wins

94 podiums

Current team

Japan Yamakawa F1 Team

- I don't see the issue states the manager with over quarter of billion in the bank and still making an income in most weeks.

- I also don't have the biggest or greatest yet (HQ5)

- I also don't have more then three driver (only need two) at under $1m for all three

- I am designer heavy ( 5 Designers) all signed under $1.1m or average of 220K

- I also have favorable deals still from before the changes as I have a strong commercial I play only $2000

August 22, 2020 05:54 am

Deleted member

698 races

22 championships

107 wins

238 podiums

Current team

-having lower tier hq save money, but reduces the points generated, good enough for a midfield div 2 team, but close to relegation in div 1

-saving money on drivers help, but need a very strong car and state of the art supplier to compensate - otherwise it is div 2

- the amount of designers is irrelevant, weak and cheap designers decreases the overall performance drastically - so they weaken stronger designers massively. I run 2 semi decent ones - super expensive, but needed to save money on drivers

- lucky you, my designers are worth their money on wage, and they are not to expensive
September 6, 2020 01:55 pm

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