FT SPECIAL REPORT The Business of

Friday November 1 2013 www.ft.com/reports | @ftreports

Chase for Inside » Team order is the talking point Kimi Räikkönen viewers puts says return will be clean slate Page 2 sport at Sport embraces green agenda Engine switch has the potential to boost appeal crossroads Page 2

Funding race is on for 2014 start Mexico City is set One dominant driver, technical false starts and to host F1 races a shrinking television audience are concerns for once again Page 3 next season, write Roger Blitz and James Allen Victorious: ’s win at last weekend’s gave the German his fourth consecutive world title AP Financing tight he Formula One season has weekend, and the US and Brazil later McLaren and Mercedes all left trailing Is F1 sleepwalking into stagnation? laps, and for the teams to fit their come to resemble a car at the in the month, will be processional – of in the Austrian team’s wake. , F1’s commercial cars with an adjustable rear wing for feeder series back of the grid: fast-moving interest only as historical footnotes Vettel’s relentless supremacy supremo, has been acutely aware of (drag reduction system, or DRS) to Junior event offers but prone to technical prob- and likely to hit audience ratings. prompted rival driver the risk of “sameness” damaging pub- improve their overtaking capability. lems and in need of some- In terms of sustained sporting inter- to comment that this season had lic interest in the sport. The idea backfired for two reasons: chance to spot next Tthing new and exciting. est, 2013 has been a write-off in F1. reminded him of watching the start of Yet Ecclestone has also talked up in many races, DRS made overtaking world champion Any big sporting competition hopes Vettel had already mounted the win- Schumacher’s races when he was a Vettel’s achievements, describing him too easy, undermining in the eyes of to sustain interest up to and including ner’s podium nine times before his child: “Going to sleep, then waking up as probably better than , many one of the fundamental skills of Page 3 a season finale. While F1 has had its victory in , leading the drivers’ when it ended because I already knew the Brazilian driver. being an F1 driver; and tyre failures share of tension-packed denouements championship from the second race what would happen.” “People complain about [Vettel] plagued the first half of the season, in the past, that is not the case this and rarely looking back. The 26-year- winning everything,” Ecclestone told the worst instance coming at the Brit- Contender adds year. old is as dominant as his compatriot news agency Bloomberg. “But the rac- ish Grand Prix in June when six cars Sebastian Vettel’s victory at last was for a decade ing is good.” suffered blowouts. to FIA broadside weekend’s Indian Grand Prix sealed a from the mid-1990s, turning F1 into a Bernie Ecclestone has been That will not stop Ecclestone and The issue became a political battle- David Ward wants fourth consecutive drivers’ champion- sport of dull predictability. his F1 colleagues trying to find ways ground. Pirelli’s desire to revert to the ship for the German, elevating him Vettel and his Racing team acutely aware of the risk of to address the lack of competition. 2012 design featuring Kevlar instead complete overhaul to equal third in the list of multiple are as symbiotic as Schumacher and The latest wheezes to spice up the of steel was blocked by the better-per- of governing body title winners. Yet the much-predicted Ferrari, and equally potent. This is ’sameness’ damaging show were to get Pirelli, tyre provider forming teams, only to be enforced by outcome also means the final three Red Bull’s fourth consecutive con- public interest in the sport to all the teams in the sport, to make Page 3 races of the season, in Abu Dhabi this structors’ championship, with Ferrari, tyres that had to be changed every 20 Continued on Page 2 2 ★ FINANCIAL TIMES FRIDAY NOVEMBER 1 2013 The Business of Formula One Hybrid power fits with greener agenda Ferrari’s Shell deal highlights attitudes and engineering “The downside is...we pinnacle of technology,” legal – as is the way in F1.” Technology direction of the wider auto- have been throughamajor says Andy Cowell, manag- Energy recovery systems motive industry. world recession, which has ing director of Mercedes’ have been overhauled, as F1 fresh approach Engine switch has Few motor manufacturers made it difƒcult for the high performance power- acts asasort of high-speed potential to boost make gas-guzzling V8 teams to embark on such a trains division. “We are research and development engines any more. Instead, big project. But we have going from archaic engines laboratory for road cars. appeal, reports the hybrid turbo engines managed to do it and we to new technology that The new engines will Commercial partners “When we started out James Allen will take F1 inanew direc- need to make sure we capi- breaks new boundaries. We recover energy when the working with tion, sending out a mes- talise on it.” could see more ofadiffer- cars brake and from the [the carmaker’s founder] it sage that the sport is It has been a few years ence across the different heat energy left in their It is no longer just was sponsorship. Now it is The new breed of Formula responding to environmen- since engines were perform- power units – more of a exhaust stream. about the branding, a technical partnership. One cars that line up for tal concerns. ance differentiators in F1. spread in reliability and “The two sources of This isakey part of our the start of the 2014 season But not everyone is in The V8s have become performance capability.” energy will be stored in a writes James Allen research and development in Melbourne in March will favour.Bernie Ecclestone, largely standardised – with It is not just in the battery pack that has 10 programme,” says John be very different to those F1’s commercial supremo, power outputs of about engines where the 2014 cars times the capacity of those Bullock, executive vice- that race around the Yas has opposed the switch, 760bhp–to the point where will differ from the 2013 we are using today. It will In planning meetings over president responsible for Marina circuit in Abu partly on ƒnancial grounds there is little to choose models. contribute over two seconds the past 18 months with the Shell’s retail business. Dhabi this weekend. The and partly because he says F1 boss Bernie Ecclestone between a Mercedes and The aerodynamic rules oš ap time,” says Cowell. Fédération Internationale Bullock points out that task of building the next the cars will not sound Renault engine, for exam- are changing too, with stiff Although such innova- de l’Automobile, motor- Shell’s Helix range oš ubri- generation of cars has been right. He even tried to delay ple, but that will change regulations designed to cut tions are expensive to intro- sport’s governing body, cants, for example, made the biggest change to F1 the introduction of the world economy are emerg- next year. the amount of downforce duce, many in F1 believe teams’ representatives their debut in F1. “For us technical regulations for engines, but , ing from recession and Fuel economy has become the cars can generate. The they are just what F1 needs noticed Ferrari was asking and Ferrari, it is about how decades. president of governing body sponsorship income is hard a priority for teams. While front wing will be narrower, to reinvigorate its appeal a lot of questions. you take this technology on Out will go the 2.4-litre V8 the Fédération Internation- to ƒnd. this season’s F1 cars use the rear wing will be after four seasons domi- In particular, the Italian the road. [F1] is the best engines, to be replaced by ale de l’Automobile (FIA), This has not only put the about 150kg of fuel over a smaller, there will be no nated by ’s team wanted to know what test lab we could have [and] small-capacity 1.6-litre V6 held ƒrm. squeeze on teams but has 300km race, there will be a lower beam wing and the Sebastian Vettel. was and was not permissi- it has global exposure.” hybrid turbo units, which While Ecclestone’s aural also helped to price Cos- limit of 100kg next year. chassis will be closer to the “I think we will see a ble with fuel ahead of the Domenicali cautions will generateafar larger concerns are a matter of worth out of the market. Mercedes, which as well ground. really exciting season, par- introduction of new hybrid against the sport being too proportion of power from taste, his economic argu- The UK-based company, as running their own team “There are dramatic rule ticularly at the beginning,” turbo engines into Formula drawn into discussions of energy regeneration. As ment isapowerful one. which supplies the Marus- will next year make engines changes on the chassis and says Mark Gillan, head of One in 2014. technical wizardry at the well as harvesting energy Teams currently each spend sia team, will not make F1 for the McLaren, Williams you have to hope your R&D for MTS,asupplier of Teams began to suspect expense oƒ ts core appeal. from braking, they will har- about $7maseason to lease engines next year. and outƒts, [technicians and race engi- simulation tools to F1 that Shell, one of Ferrari’s “We must not forget this is ness power from waste heat a supply of engines from , technical have beenastrong advo- neers] maximise the possi- teams. “There will be some commercial partners, was racing,” he says. “If you from the turbocharger – manufacturers Ferrari, Mer- director of the Williams F1 cate of the new technology. bilities,” says Martin Whit- teams that will come to the developinganew range of move too much towards about 160 of the 760 brake cedes, Renault and Cos- team, says: “On one hand, I Many in F1 believe their marsh, McLaren team prin- fore, while some will be complex fuels that would only the technological side, horse power total. worth. From 2014, however, am pleased the FIA has had engines could be the ones to cipal. “Some won’t do that made to lookabit stupid. give more power for less you lose the passion. The The move has been that price will triple to the foresight to look at beat next season. and one team may ƒnd a But it is positive: we have weight when used in the fans want emotion, not only inspired by the need for about $20m – this at a time engine efƒciency and use F1 “In all the opinion polls, solution other teams didn’t really relevant technology new generation of engines. technology.” F1 to rešect the changing when large parts of the to push those technologies. the fans want F1 to be the see or didn’t think was coming in.” And so it has proved. Luca di Montezemolo, In the face of cut-throat Ferrari president, famously competition, where winning said Ferrari was “con- and losing can be differenti- demned to win”. In the ated bya10th ofasecond Michael Schumacher era per lap, F1 teams look for the team did little else, with every advantage, especially the German helping Ferrari from new technology. to six consecutive construc- Team order is The key to being competi- tors’ championships from tive with the hybrid 1999 to 2004. But since their engines is not just raw last constructors’ title in power but also efƒciency. 2008, Ferrari have had to The cars next season will be play second ƒddle to Red expected to cover the same Bull Racing. the talking point Grand Prix distances with one-third less fuel–part of a push by F1 to portray itself as relevant to road car ‘Formula One is development and less of a the best test lab on Räikkönen’s gas-guzzling sport. For Ferrari in particular, Shell could have with their lucrative road car division, it is vital that and it has global they can show how innova- exposure’ return to Ferrari tions on the racetrack enhance their road cars. As the fuel partner with “Winning is important,” the longest association with concedes Bullock. “If we any team–one that dates were purelyasponsor, look- back 60 years – Shell is, not ing to get our brand šashed Interview The Finn insists his pairing with surprisingly, looking to give about,Isuspect winning Ferrari the edge over their might be the only thing we next season will work despite rivals. According to Stefano were interested in. But we Domenicali, Ferrari team haveabroader approach to the Lotus team row in India, writes James Allen principal, Shell’s innovation this partnership.” could be decisive. The sport’s evolving “The fuel will make the media model helps explain t last weekend’s Indian through. It is not like we are 20-year- difference in terms of per- why corporate partners are Grand Prix, Kimi Räikkönen olds any more.” formance. We have been keen to broaden their was in third place with just Räikkönen is an uncomplicated working together since the involvement beyond simply four laps to go when character–he likes to drive fast, race beginning of the design getting their logo onatele- , his Lotus hard and then go home. Not for him process to maximise it,” vision screen. AF1 teammate, tried to overtake. the political chicanery of some drivers Domenicali insists. “We need to appreciate Räikkönen’s tyres were worn out or the mind games of others. But he is From next season, F1 cars that the world is changing,” and he was running three seconds a a stubborn character, as the recent will be limited to 100kg of Domenicali says. lap slower than the young French- šare-up in India demonstrates. fuel per race, compared “In terms of the media, man. But despite entreaties over the Will Räikkönen play second ƒddle with usage of about 150kg the opportunities and plat- team radio to let Grosjean past, to Alonso? Many have compared Fer- at present. forms that were good up to Räikkönen was not willing to give up rari’s bold decision to bring together “It isanew challenge a couple of years ago are no a possible podium place without a the two former world champions to fromatechnical point of longer valid.” ƒght. the pairing of Ayrton Senna and Alain view,” Domenicali says, but He points to the prolifera- The cars touched; Grosjean was Prost at McLaren in the late 1980s. the fuel change also “intro- tion of social media chan- pushed off the track, although he Senna and Prost was Formula One’s duces something that has nels and content-sharing recovered and managed to make the greatest ever rivalry, but it turned not been in F1 before: efƒ- websites such as YouTube pass, going on to ƒnish third. After- toxic. Prost, winner of four world ciency”. as proof that other plat- wards there were heated words, with championships, acknowledges the Many sponsors, when forms have in some ways Räikkönen expressing no remorse or similarity. they get involved in F1, taken over. apology for his actions. “In 1988, with Ayrton, we had a look for ways to make “It is not only TV,” Conclusion: Räikkönen races only great season–everything was OK,” themselves relevant. Shell’s Domenicali says. “We need for himself. the Frenchman explains. “But in 1989, involvement with Ferrari to consider ...other tools It is likely that the Finn, now 34, we started to have friction for a stu- illustrates how commercial the young generation are was also sending a message to Fer- pid reason [a pre-race agreement that partners increasingly are using. We need to make rari, the team he will drive for next was broken] and it becameareal looking for more than just a sure that we–as F1 and season. If there is an outƒt that is a problem because of the people around Uncomplicated: game-changing hybri d turbo engines championship after winning the sea- marketing platform. Ferrari–maximise these.” stickler for team orders, it is the long- you – friends, some media.” Räikkönen says and new aerodynamic regulations. son opener in Australia – the team est serving team on the grid. Despite this experience, Prost is leaving Lotus was “When you have a big change, it is have admitted they are behind on Under , team backing the pairing. “For the sport, purelyafinancial always better to be withatop team, payments to their driver. Räikkönen principal, and his predecessor, Jean for the media and the spectators, it is matter AFP/Getty as they have the resources and usu- was not willing to talk about a 2014 Todt, Ferrari’s number two driver has very good. It isalong time since we ally they make the best cars,” he says. contract while he was still owed for On FT.com » known his place. When the call has had two drivers on that level in the “The clincher for me was that [Fer- his 2013 one. come to let through the lead driver– same team.” rari] wanted me back. It wasn’t a difƒ- “I like to race–that is the only Michael Schumacher, as it was in Räikkönen knows Ferrari well: he cult decision.Iknow the team and I reason I am here [in F1],” he says. Todt’s era, or Fernando Alonso today raced for the Italian team between know what good people they have “But the reasonIhave left [Lotus] is Sporting greats – the number two is required swiftly 2007 and 2009, winning the drivers’ there.” purely...the money side:Ihaven’t to oblige. championship for them in his ƒrst The decision was probably made got my salary. As Sebastian What will happen next season when season before being dropped to make easier by the fact that, despite its suc- “It is hard to say which way it Vettel seals a Räikkönen is paired with Alonso will way for Alonso. It will not be lost on cess in the past two seasons, Lotus would have gone if that [had] hap- be one of the most intriguing ques- Räikkönen that the Spaniard has has money problems and is waiting pened, but the deal [with Ferrari] is fourth title, who tions for 2014. failed to win a title at Ferrari in four for an investment consortium from done now and I am very happy.” else in F1 has “I don’t see any reason why it years of trying. the US and Middle East to sign up and How happy Alonso will be next sea- won’t work [at Ferrari],” says Yet the Finn says he has no prob- transfer funds to allow the team to son should he come up behind won multiple Räikkönen. “We are all old enough to lems with the past and insists the move forward. Räikkönen in the closing stages of a know what we are doing. If there is [a move makes sense ahead of the intro- While Räikkönen has performed race and need to pass him remains to championships? problem],Iam sure we can talk it duction next season of potentially well at Lotus–he briešy led the be seen. www.ft.com/F1 Chase for television viewers puts sport at crossroads

Continued from Page 1 group that bought into the in Germany after he was less fuel. While this has ers. F1’s global television In , Canal Plus has reach of the sport by host- The Russian city of sport in 2006. served with an indictment posedastiff challenge for audience fell last year, down full exclusivity. This has ing races in far-šung loca- – which is also hosting the the Fédération Internation- But the overriding sense in July alleging bribery. the teams, Mercedes in par- 34 per cent in China alone. signiƒcantly cut the live tions, Europe still repre- 2014 Winter Olympics – and ale de l’Automobile (FIA), was that Todt was looking While 2014 promises fur- ticular have been working The sport is atacross- audience for F1, although sents by far the largest per- New Jersey in the US are the sport’s governing body. to exploit any weakness in ther uncertainty at the top hard to prepare for the roads regarding media the delayed coverage means centage of the global televi- new additions to the 2014 The 2013 season has been Ecclestone, the sport’s chief of the sport, the new season change and have been mak- rights distribution, with tra- the overall ƒgure for F1 sion audience – 64 per cent calendar, while Austria and one in which the FIA has executive, whose position at will bring the opportunity ing conƒdent noises about ditional mass-market broad- viewing remains high. compared with about 10 per Mexico City return to the sought increasing inšuence the top of F1 remains to inject some much needed next season. casters such as the UK’s cent for Asia, according to schedule.Arecord 22 Grand over F1. The choice of tyre under threat in the face of competition. The new approach has BBC, RAI in and TF1 Repucom, an industry mon- Prix races are proposed for supplier for future seasons personal legal problems. Todt’s long-cherished helped entice Honda, the in France no longer able to 34% itoring group. next season. was just one ofanumber of Ecclestone and other hope foragreener approach world’s largest engine afford the rights fees. This creates problems for The other imponderable points of friction between defendants face a $170m to F1 has come to fruition, builder, back into the sport. Ecclestone has been Fall in Chinese television F1, though not insurmount- for 2014 will be whether Ecclestone and Jean Todt, damages claim in the High against Ecclestone’s wishes. The Japanese group, which pushed into doing exclusive audience for F1 in 2012 able ones. Vettel can match Schu- FIA president. Court in the UK from Ger- Out go the gas-guzzling quit F1 in 2008, will be the or semi-exclusive deals with On the positive side, F1 macher’s record of ƒve con- A staged handshake in man media group Constan- 2.4-litre V8 engines and in engine supplier to the pay channels such as Sky F1 continues to push into drivers remain high-proƒle secutive world champion- July signalled a deal on the tin Medien, which alleges come the new generation of McLaren team from 2015. and Canal Plus. In the UK new markets, particularly and highly paid global ships. Short of making the long-term distribution of F1 F1 was undervalued when 1.6-litre V6 hybrid turbo Will the viewing public and Italy – two of F1’s larg- in Asia and the Americas, sportsmen, and there competition more even by proƒts between the FIA, the sold to CVC. He is vigor- engines. notice the difference? F1 est television audiences – but the television audience remains plenty oƒ nterest forcing the German to drive teams and commercial ously defending the lawsuit. The cars will have to will certainly hope so, given viewers are able to see only has remained stubbornly among cities around the without a steering-wheel, rights holder CVC Capital Ecclestone also faces pos- cover the same 300km race that thisacrucial time for half the races live on free- eurocentric. Much as Eccle- world for staging Grand few would bet against him Partners, the private equity sible criminal proceedings distance but using one-third its relations with broadcast- to-air channels. stone tries to broaden the Prix races. achieving it. FINANCIAL TIMES FRIDAY NOVEMBER 1 2013 ★ 3 The Business of Formula One Funds race revs up for 2014 start Finance proves tight for feeder series

recalls the lack of education and guid- Mexico Though scheduled to host F1 again, Mexico City has much work to do, says Jude Webber New talent ance offered to young drivers when he was competing. Junior event offers chance to “When I set up the team, we focused exico City has never been spot the next Sebastian on preparing drivers much better to closer to returning to the reach the top,” he says. “Take Vettel – Formula One calendar Vettel even if resources are he listened properly – and look where since it held its last he is now.” Grand Prix more than limited, reports Simon Gray have an estab- Mtwo decades ago. Yet it remains a long lished roster of sponsors to fund their way from the starting line. The grandstands will be busy for this operations but other outfits rely heav- After years of excited but foiled pre- Sunday’s , as ily on drivers to raise up to €2m for a dictions of an imminent return, a race fans flock to the to year’s racing. at Mexico City’s historic Autódromo acclaim four times world drivers’ “Not many drivers bring a full Hermanos Rodríguez was included in champion Sebastian Vettel. year’s budget. The team’s survival the F1 schedule for 2014 – part of a Considerably fewer spectators will depends on finding companies willing wider trend in the sport to target be in their seats a few hours earlier to to support us,” says Maurizio Salva- emerging market venues. watch the final races of the feeder dori, owner of Italy’s . The Mexico fixture is scheduled for GP2 and GP3 series, even if those who Germany’s Hilmer Motorsport were November 16, a week after the US are watching will be influential. this season forced to replace their Grand Prix in Austin, Texas, an event “No one in Formula One holds brief- race-winning driver that drew exuberant Latino crowds ings during the GP2 race because eve- because of a lack of sponsorship from both sides of the border for the rybody is on the pit wall,” says Bruno funds. Low media coverage for the first F1 race at the circuit in 2012. But Michel, chief executive of the com- feeder series does not help. at present, the Mexican race is listed pany that runs the two junior series. Caterham are the only team in F1 only as provisional. “The paddock is watching because the that also operate a GP2 outfit. Cyril For it to be confirmed, Mexico’s gov- racing is fantastic.” Abiteboul, Caterham team principal, ernment needs to make a formal The GP2 championship was estab- says synergies such as sharing a fac- announcement of the event so that lished in 2005 to give up-and-coming tory and other facilities shave about the permits for upgrades to the track drivers the chance to rub shoulders can be sought and the estimated eight with the leading F1 teams and demon- months of building work can begin, strate their potential to succeed at the according to Carlos Jalife, editor-in- top level. More than half of the cur- ‘With knowledge, passion chief of FASTmag, one of Mexico’s Influential: businessman Carlos Slim Domit (right) with driver Sergio Pérez (centre) and McLaren’s Corbis rent F1 drivers came through GP2, and technical ability, you leading motorsport magazines. including Lewis Hamilton, Nico Ros- Bernie Ecclestone, F1’s commercial berg and Nico Hülkenberg. can be successful and boss, has demanded a $42m sanction- Walker, the whisky brand. “Mexico ago, intent on portraying the country great opportunity to put Mexico City Going into this weekend’s GP2 ing fee for holding the event, accord- has a great history in F1 – its races as a vibrant, emerging power, rather on the global map.” decider, Switzerland’s make a profit in GP2’ ing to Jalife. Local organisers – which were always very popular,” he adds. than a country riven by drug-related Mexico has other important cheer- has a seven-point lead over include Mexico’s Corporación Intera- The first Mexico Grand Prix was in murders and kidnappings. leaders, including José Abed, a vice- of the UK, with 25 points available to mericana de Entretenimiento (CIE), 1962, although tragedy marred the Brown, meanwhile, believes Mex- president of the Fédération Interna- the winner of tomorrow’s feature race 10 per cent off their GP2 team’s costs. the live entertainment promoter – event when 20-year-old local driver ico’s violent reputation should not be tionale de l’Automobile, world motor- and 15 for the shorter sprint race on Also important are the opportunities believes they can raise about $26m Ricardo Rodríguez was killed during a deterrent to fans or sponsors. “It is sport’s governing body. Sunday. Felipe Nasr of Brazil is also for advancement available not just to from tickets and merchandise, leaving practice. The Autódromo Hermanos an opportunity for Mexico to use F1 to Carlos Slim, the Mexican telecoms in with a chance. drivers but engineers, mechanics and a $16m shortfall to be funded by the Rodríguez is named after Ricardo and show it can put on a global event in a tycoon, is another vocal – and power- It is just as close in GP3, the cate- logistic experts. “We offer an entry federal and city governments, he adds. older brother Pedro, who also died at safe manner,” he says. ful – advocate. His son, Carlos Slim gory below, where Russia’s Daniil ticket to F1,” he says. With Mexico’s economic growth fal- the wheel of a racing car. Chris Sice, managing director of Domit, sits on the 10-member senate Kvyat is seven points behind Facu For Finnish GP3 team Koiranen GP, tering in recent months, officials have Yet a deteriorating track – Ayrton Blended Republic, which advises that handles the management and Regalia, the Argentine series leader. which have helped drivers such as to be careful of being seen to be fund- Senna once complained he had raced brands and rights holders on how to finances of the FIA, and has been As proof that the series is fulfilling its Williams F1’s climb up ing a “rich man’s sport”, Jalife says. on street circuits with a smoother sur- produce branded content for TV and instrumental in regaining the Mexico brief to promote young talent, the 19- the career ladder, competing in F1 is a At the same time, any further delay in face – and the increasing pollution in digital outlets, says Mexico should Grand Prix. year-old Kvyat was recently given a long-term dream. “We are ambitious confirming the Grand Prix would be Mexico City led to the sport abandon- look to Singapore for lessons on how The Slims’ Telmex phone company, seat in the Toro Rosso F1 team for but realistic,” says Afa Heikkinen, cutting it fine. “If they don’t ing the venue after 1992. The circuit to exploit F1. The city-state intro- through its Escudería Telmex stable, next season. team manager. “First we will look at announce it soon, they won’t have has since been modified, including duced night racing and hosted con- has also helped bring on Mexico’s two GP2 was devised to be affordable to moving into GP2.” time,” he adds. changes to slow the notorious Per- certs and parties around the Grand F1 drivers, Sergio Pérez and Esteban teams, to use the same suppliers as F1 F1 is not the goal for Racing Engi- CIE will not comment on how its altada corner, and the circuit now Prix to help portray itself as a glamor- Gutiérrez, driving for the McLaren (tyres from Pirelli, brake equipment neering, says de Orléans-Borbón. “F1, preparations are going, but F1 mar- incorporates a baseball stadium. ous, sophisticated place from which and Sauber teams, respectively. The from Brembo) and to present drivers from the middle of the grid down, has keters are already revving up for a Although improvements to the marketers could target a regional Slims are not, however, expected to and teams with similar challenges, financial problems. In GP2, with race. “Our clients are excited. Mexico track itself will cost a modest audience. step in to fill the funding gap. such as making pit stops and manag- knowledge, passion and technical abil- is a very important market for most $3m-$5m, according to Jalife, more “It is up to Mexico’s tourism offi- Having clinched a provisional place ing tyre wear. ity, you can be successful and make a global sponsors,” says , investment is needed to upgrade the cials to plan ahead and see what more on the grid, Mexico has to make sure Leimer drives for the Racing Engi- profit – even in the current economic founder of Just Marketing Interna- paddock and hospitality areas. they can do to make sure people see it can make it to the starting line in neering team, which briefly hired the environment,” he says. tional, an agency that works with F1 Bringing back F1 would be a coup increasingly positive messages,” says time with a fixture that Jalife says young Vettel early in his career. “What I enjoy is working with sponsors such as Unilever, the con- for Enrique Peña Nieto, who became Sice, who has worked on a number of will bring “Latin flair” back to the F1 Alfonso de Orléans-Borbón, a young drivers and seeing how good sumer goods company, and Johnnie president of Mexico just under a year F1 projects. “[The Grand Prix] is a calendar. former driver who founded the team, they really are.”

Presidential contender directs his fire at FIA’s ‘boys in blazers’

Interview not fit for purpose.” His early working life or a stalking horse for He believes too much included a stint at Unicef, another candidate. David Ward power is invested in the the UN children’s agency, Ward wearily brings up FIA president, that the before he became chief another rumour: that he is Roger Blitz hears body’s checks and balances policy adviser to John part of “some sort of are poor, its commercial Smith, the late leader of convoluted plot organised why the sport’s operations not sufficiently the Labour party in the by [Ecclestone]” to governing body is in separated from its UK. destabilise Todt. regulatory role and that Such were his close links Of his relationship with need of an overhaul there should be proper to the party that he was a Mosley, Ward says: “He is publication of accounts. key actor in the F1 saga an old friend. But he is not There is also the issue of that engulfed the early backing my campaign now It is fitting that David how difficult it is to stand months of Tony Blair’s at all.” Ward has chosen the for the FIA presidency premiership – when a £1m When we met last historic Royal Society of because of the high donation by Bernie month, speculation was Arts in London as the number of nominations Ecclestone, F1’s rife in F1 that Mohammed meeting place to discuss required for candidates. commercial supremo, to bin Sulayem, president of why he should run Among the 20 reform Labour became linked the Automobile and motorsport’s governing proposals in Ward’s embarrassingly to the Touring Club of the United body. manifesto are plans to government’s decision to Arab Emirates and an The 57-year-old reduce the FIA presidency exempt F1 from a ban on influential voice in the Englishman has taken on to a non-executive role and tobacco advertising. FIA, was considering the difficult task of limit its terms of office to “Cock-up” is Ward’s running for the presidency. challenging the incumbent, two periods of four years, succinct description of the Ward had said he was Jean Todt, for the to appoint a chief episode. prepared to stand aside if presidency of the executive on a fixed term By then, he was bin Sulayem announced Fédération Internationale and reconstitute the FIA’s ensconced in the FIA, his candidacy. Yet bin de l’Automobile (FIA) in powerful senate. advising former president Sulayem has since declared an election next month “If you get the during his his backing for Todt. that will have a crucial governance right, you will term of office, running its Despite this setback, the bearing on the future of improve the quality of Brussels and French offices Englishman’s battle to the sport. racing on the ground,” he and having a significant improve the FIA’s “This building is famous says. “It is all to do with say in environmental and governance has already for being the centre of the having a regulatory system road safety issues around reaped rewards. enlightenment,” Ward for the sport...to make the world. The FIA has been forced explains. “I am an old- sure that it is transparent Innuendo and rumour to concede that there has fashioned enlightenment and trustworthy.” follow the politics of any been “confusion” in its kind of person and think The election for the FIA big sport, particularly election rules, which has healthy, open debate is the presidency is due to take when the president of led to it proposing an way to do this.” place on December 6. its governing body amendment. A small Ward, until recently Ward cannot is being victory, it fits the central director-general of the FIA pinpoint what challenged. plank of Ward’s message. Foundation, which brought him into Ward’s The organisation of F1, promotes road safety, has the world of candidacy is he insists, is moving for two decades observed amateur car no different. towards a more corporate at close quarters the racing as a young He is said structure. “Similarly, workings of the FIA. The man, except to say to be a the FIA needs to get Paris-based body is, he he was hooked puppet of its governance away says, “a great institution” from the outset. Mosley from the boys in that “potentially could be blazers and all of that even greater and do lots of to a more professional useful things”. approach,” he says. It is also broken and needs to be fixed, Ward Up for election: argues. “The governance David Ward wants [of the FIA] is seriously the FIA presidency

Contributors »

Robert Orr Simon Gray Philip Parrish All FT Special Reports are Commissioning editor FT contributor Sub­editor online at www.ft.com/reports

James Allen Jude Webber Andy Mears Follow the reports team on Formula One correspondent Mexico City correspondent Picture editor Twitter: @ftreports

Roger Blitz George Kyriakos Steven Bird For advertising details contact Leisure industries Production editor Designer [email protected] or correspondent your usual FT representative. 4 ★ FINANCIAL TIMES FRIDAY NOVEMBER 1 2013