Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

McLaren boss Brown warns F1 must change to survive

Published 05/04/2020, 23:05
Updated 05/04/2020, 23:10
© Reuters. Formula One F1 - Russian Grand Prix

LONDON (Reuters) - Formula One is in "a very fragile state" due to the new coronavirus crisis and risks losing some of its 10 teams unless some big changes are made, McLaren boss Zak Brown warned on Sunday.

The season has yet to start, with two races -- including the showcase Monaco Grand Prix in May -- cancelled and six postponed so far.

The sport has already made some changes, including postponing a planned major technical rule change from 2021 to 2022 and agreeing teams will use the same cars next year but Brown said more was needed.

"Could I see -- through what is going on right now in the world if we don't tackle this situation head on very aggressively -- two teams disappearing? Yeah," the American told the BBC.

"In fact, I could see four teams disappearing if this isn't handled the right way."

Brown said the economic and health situation meant it should not be assumed anyone would be lining up to take over any struggling teams.

"I don't think the timing could be worse from that standpoint," he added. "So I think F1 is in a very fragile state at the moment."

McLaren last week became the first team to put staff on furlough while ratings agency Moody's changed Formula One's outlook to negative from positive.

Team bosses are due to discuss cost-saving plans on a call on Monday.

A $150 million budget cap, still well above the spending levels of some smaller teams, is due to come into force next year but Brown indicated there was a push for it to be reduced further -- possibly to $100 million.

"You have everyone at $150m, and the strong majority -- including one of the big teams -- willing to come substantially under $150m," he said.

© Reuters. Formula One F1 - Russian Grand Prix

There is also some discussion about a further postponement of the technical rule changes to 2023.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.