F1:Nail-biter season; IRL: A lean year for American Motor sports
F1
This season was one of the most competitive in the history of Formula 1. The title battle went back and fourth between Ferrari and McLaren; even BMW Sauber led the championship for a short time. The new season starts as soon as the checkered flag falls on the last race. After 4,000 miles of racing in 17 events across that many countries the fact that the championship came down to the last three hundred meters of the last race of the season is nothing short of amazing.
There was so much development on the part of all the teams especially Ferrari and McLaren; it was truly an amazing season to witness. Every season starts the same way with ten teams interpreting the rules handed out by the FIA and building their cars to the rules based on what they think is the best and most competitive design. This year the level of competition and development was the highest and most expensive in the history of the sport.
As the season went on, both top running teams embarked in massive development programs which made the McLaren MP24 2.5 seconds faster at the end of the season than it was at the beginning. The difference in performance between these two teams was often measured in hundredths and thousandths of a second but at the end of a day the championship was not decided so much by performance but by the mistakes made during the season by both teams. Take away just one of the mistakes made by either driver or team and the point’s race would not have been as close.
2009 will be different; new rules will change the cars dramatically; less down-force, slick tires, and the KER system are some of the major changes that will be implemented. By now thousands of hours and many development parts have been tested in the wind tunnels and seven poster rigs at the respective factories to finalize the design of the new cars. As in 2008, teams will start with a design, which will not be frozen; rather they will start with cars that will continue to be developed throughout the season. In the old days teams would freeze the design at some point before the beginning of the next season and go into production with the cars. Development through the season was limited to small aero pieces, some geometry changes, and engine and gearbox changes. Now the whole design seems to be in a state of flex. McLaren, Ferrari, BMW and Toyota were a good example of that this year; their cars continued to evolve with each race. In the case of McLaren and Ferrari they didn’t have any choice; the competitiveness of the championship demanded it. One thing that is not yet clear is what impact the global economic slow down will have on F1. With the way the car industry is doing here in the US and all over the world it’s hard to believe that some sort of effect will not be seen in F1. While it is still the premier form of racing in the world it is still hard to justify the price tag, maybe F1 will need a bailout too.
IRL
If the stock market and auto executives begging for a bailout in Washington are any indication of the current state of the nation, American racing could see one of the worst seasons ever in 2009. At a time when the IRL needs to revamp their formula with new chassis in 2010 and at a time when engine manufacturer’s involvement is desperately needed in American open wheel racing, this economic slow down could not have come at a worse time. Tony George made a big investment in open wheel racing last year which finally prevailed over the rival Chap-Car series; he gave all the Champ Car teams, who committed to a full season in 2008, cars and engines for the season, as well as a piece of the participation fund which was about $1.0 million dollars that helped a lot of teams survive. That made for better fields and more competition, but 2009 will be different. There is virtually no sponsorship money out there and car manufacturers are out of the game for the foreseeable future. So what does that mean for the IRL? I think the smaller teams are in for a very difficult year and some of them will not make it. The fact is that no matter what Tony and the IRL do in 2009 to help the competitors, you still need lots of money to do a whole season of Indy car racing in 2009. Even if they get free engines again and use the chassis they have, there is still travel, personnel, fixed overhead and oh yes, crash damage just to mention a few. The bottom line is that you need at least $4.0 million to $5.0 million even with the help of IRL to be a full time competitor and is almost impossible to find that kind of sponsorship money out there today. So what can we expect in 2009? I think that we’ll go back to the 18 to 20 car fields and they may not be the same 18 to 20 cars every race. It’s unfortunate that this recession happened just when open-wheel racing could finally make a come back.
The bad news extends beyond open wheel racing as well, NASCAR teams are experiencing trouble selling sponsorship too but their situation is slightly different. They are coming off the greatest boom run in their history; teams have gotten big and very expensive to run making their budgets hard to manage. We’ve already seen some teams go out of business and others consolidate like the Ganassi and DEI marriage of convenience. Oddly enough I think many NASCAR teams may be more vulnerable than their IRL counterparts but it may not be as noticeable because they have so many teams. In the last ten years or so the IRL teams were tightening their belts and looking for ways to be more efficient while NASCAR teams experienced unprecedented growth and bigger budgets with big infrastructures making it harder to lean out. It’s going to be interesting to see how everything develops. Maybe this will be an opportunity for sponsors to see value in open-wheel racing with the IRL and the Indy 500. I guess we’ll see.