FT SPECIAL REPORT The Business of

Friday October 31 2014 www.ft.com/reports | @ftreports

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Company man handed A spectacle in search of identity task of revival Team principal will need to Lack of confidence navigate politics characterises F1’s one- Page 2 man show,say Roger Funds and fun factor Blitz and James Allen Unequal allocation to the teams and a turn-off ernie Ecclestone turned 84 by TV viewers take toll on October 28 and was still in Page 2 charge of Formula One. Not badforamanwhohasbeen Trials and tribulation B writtenoffmanytimesover. The sport’s chief executive has domi- Although recently deep nated the paddock talk this season even in legal swamps, Bernie more than usual. His trial in Germany Ecclestone has kept on bribery charges has been the centre- piece of a year of sterility for the motor- himself firmly strapped sport. in the Perhaps they are connected. His driving detractors believe F1 cannot progress while he is still in charge. His advocates seat insistF1wouldbelostwithouthim. Page 2 Either way,F1 seemed transfixed and paralysedbythetrialinaMunichcourt- house. Until the case was settled one way or another, no one had much idea what would happen to this glamour sportwithhugeglobalreach. ’s star keeps The case was settled when Ecclestone handed over a cheque for $100m. The his feet on the ground charges–whichhealwaysdenied–were says dropped. He left Munich and went back money takes second to the day job, gladhanding Vladimir place to winning PutinattheSochiGrandPrix,talkingup One team: Mercedes has dominated the season, with (above) and duelling for the drivers’ championship. — AP othernewvenuesandtalkingdownoth- Page 3 ers,makinghispresenceverymuchfelt. ing point – the on-track rivalry of driv- around corners. They even look spec- incidents occurring between them dur- A new generation of drivers is coming Forbetterorworse,Ecclestoneisback ers whose win-at-all-costs desire and tacular. ing both the Grands Prix in Monaco and on to the grid. became Women play increasing in charge. But the business he runs is willingnesstotakeriskattheedgeofthe True,asfaras theappealoftheseason inSpa,inBelgium. the youngest ever F1 driver when he goingthroughanidentitycrisis. rulebookhasnocomparisoninsport. hasbeenconcerned,oneteamhasdom- This season has also been more tookpartinapracticesessionattheJap- technical role This may be the effect of the three This season has been far from inated proceedings, Mercedes AMG. Its watchable because of the young and the anese Grand Prix for Toro Rosso at the More female science preceding seasons, which were domi- dull. The move to hybrid turbo engines two drivers, Lewis Hamilton and Nico new. Vettel, a relatively elder statesman ageof17yearsand53days.Hewillmake graduates translates nated by one driver, . coupled with a reduction in rear down- Rosberg, however, have fought a com- attheageof27,haslosthisauraofinvin- hisracedebutnextMarchinAustralia. Fansbecamebored. force means cars are more jumpy at the pelling duel for the drivers’ champion- cibility, upstaged by his exciting Aus- Many feel that 17 is too young, others into bigger role in F1 HissupremacydeadenedF1’skeysell- rear and less planted to the ground ship, with some controversial on-track tralianteammateDanielRicciardo,25. continuedonpage3 Page 4 2 FINANCIALTIMES Friday 31 October 2014 The Business of Formula One

Inequalities and fall in TV audiences take their toll Ecclestone stays in driving seat through trials and tribulations Finance Ferrari getting about $100m, Red Bull the team because of the success we’ve leaving,” he adds. But “it’s not fantastic about $70m, McLaren $40m and Wil- had,” says O’Driscoll. The team’s title as a barometer of F1’s appeal that liamsandM ercedes$10meach. sponsor Martini “is showing growth in McLarendoesn’thaveatitlesponsor[to Back in January, the trial about a future in Bickering over revenues Akeydifferenceinstructurefrom,for market share”, he says, because of the replace Vodafone, which left at the end identity of the future which he would “look after masks the great problem example, Premier League football is the partnershipithaswithWilliams. of 2013]. You can’t imagine Manchester owners and managers of the strategy” rather than of how to make the sport gapbetweenthehighestandlowestpaid As for smaller teams barely a week United going a year without a shirt Formula One was anyone’s the details. teams.InthePremierLeaguetheratiois goes by without rumours that one of sponsor. guess, writes Roger Blitz. Yet the rejuvenated 84- more relevant and 1.5to1;inF1itis4.5to1. themisabouttogooutofbusiness. “The problem is that F1 teams have a , F1’s year-old, casting aside profitable, says James Allen For smaller teams a particular pres- The view of Ecclestone and the top biggerappetitethanfoodtheycanputin chief executive, was knee previous worries about his surehascomewiththisseason’smoveto teamsisthatnamessuchasFerrari,Wil- their mouth,”says Brown. “ A lot of that deep in legal swamps. He health, continues to hybrid turbo engines. They cost $20m liams, McLaren and Mercedes have is self-inflicted. They spend what they was awaiting trial in manage the minutiae of F1 F1 is one of the most expensive sports to perseason,morethandoublethecostof been around for ever and that it is right haveandthenadollarmore.It’ssocom- Germany on bribery – new teams, new venues, compete in and, while it generates good V8enginesupto2013. toprioritisethem. petitiveandyoucankeepspending.The charges and had to stand new engines, new drivers, commercial revenues, the teams get Williams is an interesting case. The decline in TV audiences this sea- cost controls don’t seem to work and down from the F1 board safety concerns. No one varying slices of the cake. Two of the Twenty years ago it was the “Establish- son, estimated at 10 per cent, is another there is a lot of waste. Do you need and get approval has been brought in to smaller ones, Marussia and Caterham ment”,but has been through a bad time worry.“There is a recognition that F1 as £200m,whenWilliamsisgettingthejob signatures from board assist him. have gone into administration in the after losing BMW as a partner and a group needs to protect its future,”says donewith£100m?” members for big contracts. He has also made some pastmonth. haemorrhaging many talented staff to Williams. “There is a greater desire to F1 has to “do more to create value, to A month later, a London effort to get back on the F1 Teamshavetwomainsourcesofreve- manufacturer-backedteams. work collectively, because we recognise ‘The bringmoremoneyin”.Hesaysthisisthe judge delivered his verdict board. According to a nue: sponsorship and a share of the Last year, it struggled to finish ninth that if we don’t act then it will have an problem is responsibilityofallinvolved. in a civil case examining number of observers, there commercial rights paid to them by in the constructors’ championship with impact on people’s commercial oppor- One obvious answer is to boost the issues similar to those to are conditions attached to Bernie Ecclestone’s Formula One Man- five points. It is back fighting the big tunities.” that F1 appeal of the sport, build up the drivers be addressed by the his return to the board that agement company, which has a 100- boys under the new management team Oneofthosewhosejobistofindspon- teams have as heroes and get more income from TV German court. He branded have not yet been met. year licence to exploit the rights from of Mike O’Driscoll and , sorship money is Zak Brown, founder rights.Comparedwithothersports,F1is Ecclestone an unreliable CVC remains, along with the governing body, the Fédération daughter of Williams’ founder Sir and chief executive of Just Marketing a bigger missinghugeopportunitiesinmerchan- and untruthful witness. Norges Bank Investment Internationaledel’Automobile(FIA). Frank. Sponsors have renewed their International. He says F1’s sponsorship appetite dising to fans and increasing revenues The man himself seemed Management and the Theincomefromrightsisdividedinto interest. market is “stable”, but he goes no fur- fromonlineactivity. ready to give up the wheel. estate. an equal payment to the top 10 teams; a Williams operates on a racing budget therthanthat. than food Unfortunately, according to Brown, “I’ve been looking, over the So do US mutual fund percentage of the prize money based on of £100m a season, about half that of “We’re not fighting them off with they can put F1 suffers from dysfunctionality.“Adis- past few years, for company Waddell & Reed, a team’s results in the previous season; Mercedes, Red Bull and Ferrari. Yet it is sticks,”says Brown, who in the past five proportionate amount of time is spent somebody who can join me BlackRock, Ecclestone and and a $10m payment to new teams. fighting Ferrari for third place in the years has brought brands including in their arguing over how to split one dollar,”he to assist with what I have Bambino, the Ecclestone Anotherfundthatisworthsome$230m constructors’championship. UPS,MartiniandUBSintoF1. mouth’ says,“asopposedtoworkingouthowwe to do,” said Ecclestone. family trust. is reserved for the top five teams, with “We are seeing enormous interest in “Most sponsors are renewing, not aregoingtomaketwodollars”. “I will eventually be in a Talks with Malone’s position, if I decide to retire media empire have – or unfortunately become dragged on. Liberty is said dead – to have someone to to want all F1’s media step into my shoes.” rights to be included in any It was possible to paint a deal – which could cause scenario where CVC problems with media Company man Capital Partners, F1’s competitors that own F1 leading shareholder, would rights, such as Rupert at some point this year Murdoch’s Sky. have to announce the end Malone and CVC have handed task of of the Ecclestone era, and different ideas about how appoint at least an interim to value F1. CVC has successor. extracted substantial This scenario also amounts from F1 for itself effecting Ferrari envisaged CVC bringing its and other shareholders. investment in F1 to a close. That is bound to influence John Malone, the US what CVC and Malone Cable billionaire, had think F1 is worth. Some renaissance begun talks with F1 about shareholders may be buying into the business. keener to exit than others, A sale of the whole of F1 and may have different or a substantial part to views on valuation, Marco Mattiacci Team principal makes a positive Malone’s according to observers of empire looked to be a the F1 ownership structure. start but has to navigate politics, says James Allen distinct possibility. But they are unlikely to Other F1 shareholders, have much bearing on notably Norges Bank CVC’s view of the business. enyearsagotheFerrariFor- sivityhigh.Marchionnewantstodouble Investment Management Mackenzie calls the shots. mula 1 team was unbeat- itsannualsales. and the Lehman Brothers CVC may have owned F1 able. With Michael Schu- Mattiacci finds himself in charge of estate, were looking to for an unusually long time macher as the driver, Jean delivering a renaissance for the team at offload their stakes. compared with other T Todt as team principal and a time when the politics of Fiat and Fer- The idea of F1 floating in investments, but there is in charge of the technical rari are at a volatile stage and Mar- Singapore has been a wish no pressure to sell. Until side, they produced the fastest car for chionne has not helped the situation by of CVC and some of the CVC indicates otherwise, a five consecutive seasons and Schu- sayingthathewantsFerraritostartwin- banking community Singapore flotation is the macher won everything. Then, after ning again quickly.“Anon-winning Fer- believe that it can be preferred option. 2007,when the group broke up, the suc- rari on the Formula 1 track is not a Fer- revived if talks with Liberty “One day we would like cesspeteredout. rari,”hesays. end without agreement. to float the company, but Thetaskofputtingthesport’sgreatest The key to Todt’s success in the role But as the year draws to there are no imminent name back in the winners’ circle falls to was that he protected his team from a close, nothing has plans,” Mackenzie said aquietlyspoken43-year-oldfromRome interference from Montezemolo, from changed. Ecclestone nearly a year ago. withnorecordinmotorsport. FiatandfromtheItalianmedia. remains the F1 chief F1’s structure seemed Marco Mattiacci was appointed Fer- His engineers and technicians could executive, his old swagger ready to be picked apart at rariteamprincipalinAprilthisyear.His work in peace. It may be hard, given his and demeanour restored. the start of the year. It may appointment was a surprise to some background and allegiances, for Matti- Ecclestone, who denied yet change, but at present members of the F1 paddock, who had accitoprovidesimilarprotectionforhis the charges, did not go to there is a stalemate over its not heard of him. Mattiacci has been staff. jail, and the charges were ownership. with Ferrari for 15 years in the road car “Every business is first of all about New broom: ordination between chassis and engine facturers to introduce upgrades, as dropped after he paid The only certainty is that division,risingtothepostofheadofFer- people,” Mattiacci says, “So I try to Mattiacci has departments. This is a huge failure, theycanatanytimeonthechassisside. $100m to settle the case. Ecclestone, a presence in rari North America, which is the com- understand how we got here and look at identified areas given that the two departments are a “Formula One is about innovation, “ Donald Mackenzie, CVC F1 for more than 30 years, pany’s largest market. He took sales in the assets we have. We are setting up a where the team few dozen metres apart, rather than in he argues. “I think that whoever did a co-founder, said during remains master of theUSAandCanadabeyond2,000units strategy that is for the next three years, has fallen behind different locations, and even different fantasticjob,it’simportantthatit’sclear evidence to the London ceremonies. ayearforthefirsttimein2013. that is going to take Ferrari back to the rivals countries in the case of UK-based Red thathe’sahead,butIthinkthattowaita civil hearing that, if It was from here that Luca di Mon- topofFormula1.” Wang Zhao/AFP/Getty BullanditsFrenchsupplierRenault. year to have a possibility to catch up Ecclestone had done Images tezemolo, outgoing Ferrari chairman, Hehasmadeapositivestart,identify- Mattiacci, who describes himself as withthebest,todevelopandtoinnovate anything criminal or picked Mattiacci for the F1 team boss ing some key areas of weakness where “quintessentially a Ferrari man” is all istoomuch.” wrong, “we would fire role. Some suggest that Sergio Mar- Ferrari has fallen behind the bench- about strategy and he is a manager who Mercedes, which has enjoyed a him.” chionne,Fiatchiefexecutive,hadsome- mark teams, and Mer- knows how to empower talent. He is healthy advantage over the field this The close working thing to do with the choice. Marchionne cedes,inrecentyears. also doggedly determined and will keep year,isunderstandablyopposedtosuch relationship between the went on to oust Montezemolo and He notes that the response times are goinguntilhegetswhathewants. a suggestion, so blocked a move to two men – the bedrock of replace him as chairman of the luxury too slow, from suppliers to internal InthewiderF1context,hehaspushed loosentheregulationsfor2015. the F1 structure – survives. carmaker. processes and Ferrari needs to move hard this season for a change of rules But Mattiacci did prove fleet-footed So does Ecclestone’s way Ferrari is 90 per cent owned by the morequicklytomatchitsrivals. freeing the development of the hybrid this month when he hired Sebastian of doing things. He Fiat group and Marchionne and Mon- He says it placed too much emphasis engine technology. The current rules Vettel in place of for mused before the tezemolo had different views on strat- on reliability at the expense of perform- stipulate an engine development 2015. egy for Ferrari after the Fiat Chrysler ance in the hybrid development phase, “freeze” on cost grounds and manufac- He has started positively. It will take Hands on: Bernie AutomobilesgroupflotationontheNew producing inferior technology, while turers can only make performance longer to see whether his blueprint for Ecclestone, F1’s YorkStockExchangeonOctober13. Mercedes invested more and for far improvementsattheendoftheseason. returning Ferrari to winning will be chief executive Montezemolo’s plan was to restrict longerinitsenergyrecoverysystems. Mattiacci has lobbied for one or two equally successful, especially with Mar- sales of to keep the car’s exclu- Another weakness was the lack of co- “windows” during the season for manu- chionnebearingdownontheteam. Emerging markets form a line to host profile-raising Grands Prix

Azerbaijan addition” to the calendar and anticipat- advertisement for their newly acquired Other costs, from building the circuit its first Grand Prix in 2008, has put the “Wearealwaysopentodoingsomething ed a “world class event” on the shores of wealth, self-confidence and openness to to redeveloping transport and other race at the centre of its drive to become with Argentina. When we meet some theCaspianSeaintwoyears’time. investmentandforeignvisitors. infrastructure, can cost many times the premier business and leisure desti- serious people, it will happen,” Eccle- Robert Orr reports that while Azad Rahimov, Azerbaijan’s minister But success requires skill and signifi- more. The circuit that was built to host nation in Asia. Bankers and business stonewasquotedassayingthisyear. countries can benefit from a for sport, says bringing F1 to Baku was a cant resources, including a fee to the last month’s inaugural Russian Grand people flock to the city state during And it is not just emerging markets successful event skill and logicalstepafteritstagedthe2012Euro- commercial rights company that Eccle- Prix, in the Black Sea resort of , is Grand Prix week for a splurge of deal- that are prepared to invest to bring a visionSongContestandwontherightto stoneheads. saidtohavecostabout€200m. making, while Singapore’s tourism GrandPrixtotheircountry.Austriawas resources are required host matches for the Euro 2020 football Sports minister Rahimov declined to Is it worth it? Robin Fenwick, chief board estimated in 2012 that the race added to the 2014 calendar, thanks to championships. reveal how much Baku planned to executive of Right Formula, an F1 mar- had generated more than S$560m financing and sponsorship from Salz- Emerging nation with cash to spend “F1isoneofbiggestsportingeventsin spend on the circuit and infrastructure, ketingcompany,stressesthebenefits. ($447m) in receipts from visitors over burg-based Red Bull, the energy drink seeks confident sporting partner for theworld,afteronlytheOlympicGames orthecostoftherighttostagetherace. “Azerbaijan or Sochi would not be theprecedingfouryears. group that also owns the Red Bull Rac- mutual profile raising and commercial andWorldCup,”hesays. ButMrEcclestone’scompanyreceives places you would think of as destina- “Five or 10 years ago, you would say ing team (see page 3). Ecclestone says gain: oil-rich Azerbaijan has found its Arif Rahimov, the Baku Grand Prix about$700mayearinhostingfeesfrom tions for tourism or business. [But] the hub for the region was Hong Kong,” even austerity-hit Greece has looked at perfectmatchinflashyFormulaOne. chief executive, adds: “We wanted this the 20 circuits, with newer additions there are few sporting events that can Fenwick says. “You could say it is now hostingarace. The former Soviet republic was con- Grand Prix to put ourselves on the map paying considerably more than estab- create global awareness [of a host city], Singapore. F1 has not been responsible Not everyone is so keen to get firmed this month as the latest country and we are confident we will show the lishedracessuchasMonzaorMonaco. andF1isoneofthose,”Fenwicksays. for that, but it has been a contributing involved. Although Austin, Texas will tohitchitsambitionstotheworld’srich- worldatop-qualityrace.” A Grand Prix, he says, brings a global factor.” stage the Grand Prix this est series, as details were Baku is following a path that is well television audience, sponsorship from Ecclestone’s thirst for new races is weekend, the , a announced of a new Grand Prix to be trodden. Emerging markets from China $700m €200m internationalbrands,tourismpotential, unlikely to end in the Caucasus. Mexico plannedblastthroughthestreetsofNew raced around the streets of Baku, its to Singapore, Abu Dhabi and, most Total amount Amount the circuit as well as stimulating other forms of City, which last hosted a Grand Prix in Jersey with ’s telegenic sky- paid in hosting built to host last fast-developingcapital,from2016. recently,RussiahaveallsoughttouseF1 fees alone each month’s Russian investment. “Hotels, airlines, bars and 1992, is set to return to F1 next year, line as a backdrop, has been postponed At the launch, Bernie Ecclestone, F1’s as a vehicle for establishing or building year by the Grand Prix is said restaurantsallbenefit,”Fenwickadds. while Argentina could be added to the for two years running. New York and commercial chief, hailed the “latest an international profile – a 200mph 20 circuits to have cost He notes how Singapore, which held race calendar, according to the F1 boss. Baku,itseems,havedifferenttastes. Friday 31 October 2014 FINANCIALTIMES 3 The Business of Formula One Red Bull’s rising Female graduates star keeps firmly stake their claim duct preliminary analysis, which helps Gender balance set our expectations for the race, which results in one or two candidate strate- grounded after Women are increasingly gies. Over the race weekend, we collect playing important technical data. That helps us model the race and craftbetterqualifyingstrategies.” roles, writes Kate Walker Another Ferrari employee straight out of university is Alessandra Cenicol, winning streak To the untrained eye, women are a rar- who works in composites. “I’m respon- ity in Formula One. But while female sible for the team that works on the racing drivers at the top tier of single- chassis, wings and bodywork. It’s an in- Daniel Ricciardo New kid on block tells James Allen seater motorsport are few and far teresting and dynamic job; continuous between,inthegaragesandatthefacto- researchanddevelopment,”shesays. on-track success is more important than money riesthestoryisverydifferent. “It’s a sort of ‘hyper-technological Women have long been part of F1, but handicraft’. All the pieces are made by hen I was younger, I Like Vettel, who has won four world are often thought to work only in mar- hand, but supported by the latest tech- used to look up to championshipswithRedBull,Ricciardo keting. But as the number of female nologies, instruments, and methods. [Fernando] Alonso is a product of the brand’s young driver science, technology, engineering and When we design a piece, we have to and [Lewis] Hamil- programme. The attrition rate is high, maths graduates has increased, so too think of its specific function in the car. “W ton and be intimi- especially the final step, from the junior has the number of women working in Weneed a deep integration between the dated by them. But when you get here, F1 team Toro Rosso up to the title- technicalroles:everythingfromaerody- manufacturing and design process, you realise that you are one of them and chasing Red Bull Racing squad. Of the namicists to mathematical modellers fromthewindtunneltothetrack.” thatyouarenormalandthatbringseve- dozens of drivers who have been bank- via a list that includes power-train inte- ryone else back down to earth. It’s all rolled through junior careers and the gration, structural analysis engineers Engineeringchange aboutperspective.” handful who have been given two-year andwindtunneltechnicians. ‘All we’re doing as Daniel Ricciardo’s life has changed apprenticeshipsatToroRosso,onlyVet- The roles themselves fail to tell the teams is looking to win, and in order to beyond recognition this year, with a telandRicciardohavemadethecut. whole story. Graduate recruitment pro- win, you need to get series of brilliant Grand Prix victories So what form has Red Bull’s support grammes at Mercedes and Williams the best people,’ for Red Bull Racing, putting him on the taken?“Itstartedin2008,[whenhewas Winning smile: Daniel Ricciardo has had three wins this season — Getty Images have seen an upturn in the number of says Claire Williams map and at the same time overshadow- 17] and consisted of them putting me female applicants year-on-year. Claire ing his illustrious teammate Sebastian with a race team and building me up to tion,youanswerithowyouwant’,which Red Bull typically pays its drivers a Williams, Williams deputy team princi- Williams and Monisha Kaltenborn, Vettel. So much so that Vettel has be in F1 one day if I was good enough,” is really nice. [Red Bull] never say, reasonable retainer but a big perform- pal, says in 2014 they outnumbered Sauber team principal, both feel decidedtotryhisluckatFerrari. saysRicciardo. ‘Don’t get tattoos,’ or whatever. It’s just ance bonus, reputedly a million dollars male applications for the first time in strongly that the sport’s meritocratic This leaves Ricciardo as team leader “Living costs were up to me, but the ‘Be yourself and if you get results then per win. So what does Ricciardo do with the team’s history “and the majority of structure will always give talent the ofoneofF1’smostpowerfulteams. bigstufftheytookcareof,includingper- that’stheexposurewewant.’” hismoney? appointmentshavebeenwomen”. chancetoshine,irrespectiveofgender. Hemaybeoneofsport’shottestprop- sonaltrainersandmediatraining.Itwas Ricciardo was promoted to the Red “It’ssomething I’m green and inexpe- Since 2007,when Mercedes’ graduate “Idon’tthinkanyoneisgoingoutwith erties, but the ebullient 25-year-old up to me to get results on the trackso BullteamfromToroRossoatthestartof rienced in,” he says sheepishly. “This is training programme was launched, a ‘let’s promote females agenda’,” Wil- Australianwiththe1,000wattsmileisa theywouldkeepsupportingme.” this season and to everyone’s amaze- my first successful year. I’ve not made women have taken 16 per cent of the liams said when asked about positive verygroundedindividual. And would he be here in F1 today ment he outperformed Vettel straight- anyinvestmentsyet,butI’mlookingto.” full-time technical roles in the team, in discrimination. “All we’re doing as Ricciardo was raised in Perth, West- withoutthem? away. His breakthrough win came in Ricciardo has everything in his game: line with the proportion of female engi- teams is looking to win and in order to ern Australia, by first generation Italian “No,Idon’tthinkso,theyhelpedalot. June at the , fol- raw speed, great feel for the car and the neeringgraduatesintheUK. win, you need to get the best people. I immigrant parents, who run a family Whethersomeoneelsewouldhavespot- lowedbywinsinGermanyandHungary. tyres and a very calm mentality that Ruth Buscombe, Ferrari engineer, don’t believe that there is affirmative earth-moving business. Despite his ted me one day is a big if. Red Bull made He has become a hot property and nevergetsworkedupinthecockpit, joined the team straight out of univer- action, but I do believe that, as in the breakthrough performances this year, it possible. Credit to them, they spotted with opportunities at other top teams His reference point is a driver who sity and spends race weekends advising rest of society at the moment in other he stays true to the advice his father has a fine talent.” He breaks out into his likely, his market value has risen. He is madethesamejourney20yearsagoand on Kimi Räikkönen’srace strategy from businesses,thereisaconversationthat’s rammedhometohimsincechildhood. trademarkwhite-toothedgrin. aware of this, but also of the delicate who embodied Ricciardo’s ideal quali- Italy. “During the race weekend, I am goingonaroundwomen.” “He always said: ‘Be honest, be your- AlthoughhisCVmakeshimlookvery balance between realising his value in ties of ruthlessness on track combined one of the engineers working from the According to Kaltenborn, visibility self and people will respect you for who much like a manufactured “product”, multimillion dollar paychecks, while withhumilityoffit:AyrtonSenna. ‘remote garage’ in the factory, monitor- remainskey.“Ithinksinceacoupleofus youare.Behumbleandworkhard.’ the latest to roll off the production line notbitingtheRedBullhandthatfeeds. “I looked up to Senna when I was ing aspects of car performance, all com- came up, it has given people more and “He sees now that even if I’ve won a of the energy drinks company, Ric- “If I knew Red Bull could give me a young,”hesays.“Hewasruthlessonthe municatingviaintercomtotrackside. more confidence. If you want to take up few races, I still work hard and don’t ciardohasbeenencouragedtofollowhis championship-winningcar,payingmea track but as soon as he took his helmet “I work with the head of strategy and a woman for a job, you don’t get ‘Do you spend any of these bonuses on anything ownstyle. lot less than someone who couldn’t give off he was humble and everyone loved Kimi’s race engineer to provide assess- really want to take a woman for this?’ silly.HemakessureIstayinline. “In F1 circles, there are sometimes me a championship-winning car, I him. ments of situations, options and risks to any more. Now we are getting into this The key was to “keep your eye on the political things you have to be careful wouldgoforthecar.Thedollarsaresec- “And to have that is great – to be the facilitate the best possible decision- meritocracy era, where you say: ‘It is prize and for me that prize is the F1 about but in general I’m not briefed ondary. I’m here to be world champion killer on the circuit but then to come making,”shesays. about the job. It is about how good you worldchampionship.” beyond ‘You may get asked this ques- andI’llgetsomedollarsafterwards.” backdowntoearthafterthat.” “Intheweekbeforetheevent,wecon- are,whatyouhavedone.’” A spectacle in search of an identity continuedfrompage1 Caterham and Marussia find them- that it reflects badly on the difficulty selves in the hands of administrators. levelofthesportifaschoolboycandoit. The future is uncertain and depends on SowhatispreventingF1frommilking fresh investors being found, for Sauber, this youthful energy and the thrilling for example, which muddles along in its Hamilton-Rosbergbattle? worsteverseasoninF1. There is palpable uncertainty, a lack Furthertinkeringisbeingconsidered. of confidence in the sport and Eccle- Ecclestone wonders aloud whether stone is partly responsible. At the start morestabilitycouldbeachievedbyhav- oftheyearwhenhecriticisedthelackof ing eight teams consisting of three driv- noise from the new hybrid turbo ers rather than the current arrange- engines, there were shades of Gerald mentof11teamsrunningtwodrivers. Ratner – who wiped £500m from the None of this is conducive to attracting value of his Ratners jewellers chain new money into the sport. McLaren in1991 by saying one of its products was remains without a title sponsor and “crap”. sponsorship in general is flat, according This rubbishing of the product irri- to sports rights analysts. Sponsors value tated teams and manufacturers, who F1, they like its global spread and near wanted the sport to tell the story of a year-round content. But in a climate of technological marvel – the reduction of significant growth in live rights across fuelconsumptionby35percentwithout sport,F1isnotcashinginasitshouldbe. any loss of speed or performance, as F1 Decline: TV viewing figures are down The sport has clearly generated huge triestopersuadesponsorsandinvestors amounts of money. A refinancing deal ofitsgreencredentials. challenge appear to have had little earlier this year gave stakeholders a Fansalsogavethethumbsdowntohis impactintheirbirthplaceofGermany. shareof$1bn. decision to award double the points in Confidence has been shaken in a vari- CVC Capital Partners, the private the final Grand Prix in Abu Dhabi in an ety of ways. The horrific accident suf- equity group that has been F1’s main attempt to keep the championship alive fered by another promising young shareholder since 2005, has reaped to the end of the season. It is likely to be driver,25 year-old , under- healthy returns on its investment. Two droppedfor2015. lined the sport’s inherent risks and has yearsago,itsoldstakesworthmorethan There was a loud raspberry, too, for ledtoareviewofsafety. £2bn. It expects to make up to $7bn on banningteamsgivingadviceviaradioto There is concern about Ferrari, the itsholding.Soitmaybenosurprisethat their drivers. It was an attempt to make oldest and most important team on the talks with cable billionaire John Malone drivers look less like robots following grid, but for too long churning out over his Liberty Media empire buying instructions and more like heroes underwhelming performances. It shook intoF1appeartobeatastalemate. thinkingforthemselves. the motorsport world when it an- This may go down as the year For- Suchtinkeringisnothingnew.F1goes nounced the departure of chairman mulaOnepausedforbreath.Therewere through perennial bouts of introspec- Luca Cordero di Montezemolo, one of toomanyuncertainties,toomuchdoubt tion, its owners and organisers fretting the biggest names in F1. Ferrari’s F1 about Ecclestone’s future to resolve about the fare on offer and whether it is team is in relatively new hands. It is too issues such as TV viewership, sponsor- attractive enough for the discerning early to tell whether they have the same ship, team finances, green technology sportsfan. determination as Montezemolo to andcompetitiveracing. The evidence suggests it is not. TV achievesuccessonthetrack. It is a reminder that, for all the size viewing figures are on the decline – pos- Other teams are feeling the financial andreachofF1,itisrunalmostsolelyby sibly by as much as 10 per cent. Most impact of the new engines and strug- one man. When that man is distracted worryingly, some of the stands at gling to stay in the race. They complain by months of personal legal issues, it is Grands Prix in such heartlands as Italy about the distribution of profits being perhaps hardly surprising that F1 has and Spain were pretty bare this season. heavily tilted in the direction of the largely marked time this year. Maybe it And Vettel’s success and Rosberg’s title teamsthathavebeeninF1longer. wasthebestitcouldhaveexpected.

Contributors

Roger Blitz Peter Chapman and Ian Moss Leisure industries correspondent Commissioning editors All FT Special Reports are available on FT.com at ft.com/reports James Allen Steven Bird F1 correspondent, Financial Times and Designer Follow us on Twitter at: @ftreports BBC Sport Andy Mears All editorial content in this supplement is Robert Orr Picture editor produced by the FT. Our advertisers have World news features editor no influence over or prior sight of the For advertising details, contact: Liam articles or online material. Kate Walker Sweeney, +44 (0)20 7873 4148 FT contributor [email protected], or your usual FT representative. 4 FINANCIALTIMES Friday 31 October 2014