Ferrari the biggest loser as teams count cost of Bahrain cancellation

**vcs316** · 4th March 2011, 03:37

Ferrari looks set to lose out the most financially from the eleventh-hour cancellation of the F1 2011 curtain-raising Bahrain Grand Prix, as the sport’s teams count the cost of the political turmoil that is sweeping the desert kingdom.

In the wake of fevered speculation about whether the race would or would not be able to go ahead against the backdrop of volatile and occasionally violent protests in Bahrain, a week-and-a-half ago the grand prix was officially canned – or postponed, subject to a suitable calendar slot being found later on in the season – following prolonged discussions between F1 commercial rights-holder Bernie Ecclestone and Bahrain’s Crown Prince.

Whilst the Formula One Management (FOM) chief executive has waived the estimated $40 million licensing fee Bahrain would have paid for the honour of hosting the opening round on the F1 2011 schedule [see separate story – click here], it seems others will not be so lucky.

It is understood that there are penalty clauses in the contracts the sport’s teams have with their sponsors in the event of missing a race – whatever the cause – and the industry’s trade guide Formula Money predicts a total loss of some $40 million from the cancellation, with Ferrari paying the heaviest price of all at around $11 million due to the Scuderia’s greater sponsorship income.

http://uk.eurosport.yahoo.com/030320...cellation.html

**Sempre_Ferrari** · 4th March 2011, 08:16

yip...it's tough at the top...lol

**Greig** · 4th March 2011, 09:25

Surely the sponsors will just wait and see if the race is scheduled for later though?

**Hornet** · 4th March 2011, 10:21

Originally Posted by Greig

Surely the sponsors will just wait and see if the race is scheduled for later though?

Yep, it should be so

According to Wikipedia

A final decision on whether the race will be rescheduled for later in the year or cancelled outright will be made before the season begins in Melbourne.

It'll most likely have to wait until that final decision is made.

**Sianellen** · 4th March 2011, 10:59

Its probably proportional though, we as a team earn a lot more through sponsorship than say Force India for example. The ammount lost is probably the same percentage to each team.

**gvera** · 4th March 2011, 12:22

I don't think Ferrari will suffer much for an 11 million loss.
If the Bahrain events get worse, McLaren is the one that may face problems.
The Bahrain Mumtalakat Holding Company (100% owned by the Royal Bahrain family) owns 42% of the McLaren group and 50% of McLaren Automotive.
What happens if Bahrani protesters push actions to freeze the Royal assets?
It has already been done to the international investments of rulers of Egypt and Libya.

**ferrari4life** · 4th March 2011, 13:51

bring on the re-scheduling then eh?

**Tifosi** · 4th March 2011, 13:59

Originally Posted by gvera

I don't think Ferrari will suffer much for an 11 million loss.
If the Bahrain events get worse, McLaren is the one that may face problems.
The Bahrain Mumtalakat Holding Company (100% owned by the Royal Bahrain family) owns 42% of the McLaren group and 50% of McLaren Automotive.
What happens if Bahrani protesters push actions to freeze the Royal assets?
It has alrealy been done to the international investments of rulers of Egypt and Libya.

That is SO worth posting on a McLaren forum dude

**Agron** · 4th March 2011, 14:09

XDDD

**Grillo** · 4th March 2011, 15:42

One more reason for having the 20th GP anywhere, if it cannot be in Bahrain I would love to see it in whatever track.

**scuderiafan** · 4th March 2011, 17:56

Originally Posted by gvera

I don't think Ferrari will suffer much for an 11 million loss.
If the Bahrain events get worse, McLaren is the one that may face problems.
The Bahrain Mumtalakat Holding Company (100% owned by the Royal Bahrain family) owns 42% of the McLaren group and 50% of McLaren Automotive.
What happens if Bahrani protesters push actions to freeze the Royal assets?
It has already been done to the international investments of rulers of Egypt and Libya.

Can this really happen??? not getting good for McLaren is it?

**gvera** · 4th March 2011, 18:22

Originally Posted by scuderiafan

Can this really happen??? not getting good for McLaren is it?

It may happen, but I beleive the situation in Bahrain is not as bad as in those other countries, so I think it is unlikely.
But I bet that Ron is following what happens in that country quite closely. Hope they get distracted from developing the car.

**siberianlady** · 4th March 2011, 18:35

Originally Posted by gvera

I don't think Ferrari will suffer much for an 11 million loss.
If the Bahrain events get worse, McLaren is the one that may face problems.
The Bahrain Mumtalakat Holding Company (100% owned by the Royal Bahrain family) owns 42% of the McLaren group and 50% of McLaren Automotive.
What happens if Bahrani protesters push actions to freeze the Royal assets?
It has already been done to the international investments of rulers of Egypt and Libya.

Great post and happy birthday to you as well!