Payments Help Keep the F1 Show on the Road

The problems that beset the smaller teams in F1 have not gone away and the cashflow situation ahead of the first race of the season in Melbourne next week remains tight.

Bernie Ecclestone this week responded to requests from one or two of them to bring forward the FOM payments due to teams later this month, to ensure that struggling outfits have the cashflow necessary to stay in business at the most challenging time of the season.

Force India, Lotus and Sauber all complained at the end of 2014 about the inequitable distribution of prize funds which ensures that the top teams receive tens of millions off the top before the rest of the prize money is distributed to all teams.

Force India is the team that has been public about the advance payment from Ecclestone. It's problems making the grid this year are well catalogued.

Less well explained is that the team has increased its financial burden by upsizing away from its 50% scale Bedford wind tunnel to the 60% Toyota tunnel in Cologne, which industry experts indicate is an additional cost of between £2.5 to £3m million. Sauber meanwhile, signed two drivers in November whose sponsors could pay up front, thereby easing the pressure on them between seasons.

Advancing money is something Ecclestone has done a number of times since taking control of F1's commercial aspects in the early 1980s, though on most occasions the payments were made discretely. 

Force India's deputy head Bob Fernley has acknowledged the support that Ecclestone has promised to his and other teams in helping them to get through the difficult days of winter when sponsor payments have dried up and car development makes greater demands on funds.

"Bernie has promised support for the teams," Force India deputy Bob Fernley confirmed, "and if that support transpires, they will be able to do the first few races."

Fernley and Force India were among the most vocal in demanding changes to the funding distribution mechanism at the final rounds of last season when Caterham and Manor were forced to withdraw. Fernley insists that the situation is still urgent.

"We have made it clear to the commercial rights holder that we have problems, as have Lotus and Sauber. It is not isolated to one team.

"Bernie has been extremely understanding," he added. "He's a racer. I think he realises this is serious."

 Ecclestone's proposed payments are not hand outs or loans but advance payments of already guaranteed funding revenue and are subject to ratification by all the teams, though this is seen as a formality.

Force India, Lotus and Sauber are understood to be among the most exposed squads along with Manor F1, whose emergence from administration in time for the Australian Grand Prix does not mean that it has yet established any long term security.

Industry chat suggests that Manor may not be aiming to attend Melbourne, too short a deadline, despite saying that was their target in their press release following the exit from administration last month. The team has a small crew working to make the cars eligible for the 2015 FIA regulations, which stipulate changes to the nose section of the cars.

Manor is due to reveal more about its plans this afternoon (Wednesday).

Force India used their 2014 car in their first of two winter test appearances in Barcelona last month while they rushed to complete their 2015 machine. That first test day was with Pascal Wehrlein behind the wheel thanks to financial input from engine supplier Mercedes which ultimately made the test possible.

They are in a race against time to get the second chassis built up in time to travel to Melbourne. It may be that it needs finishing in the Melbourne pit lane, as the first chassis was completed in the pit lane in Barcelona. The car performed reasonably well in testing, despite the late start, covering a significant mileage in a short time with no nasty surprises.

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