Could Ferrari really quit F1?
Monday 6 November 2017
FERRARI president Sergio Marchionne has said the team could quit Formula One due to changes being introduced by new owners Liberty Media. This comes after Mercedes and Renault both raised concerns about the future of the sport.
Simon Chadwick, Professor of Sport Enterprise at the University of Salford Business School, says the threat may be genuine and that a breakaway series is possible, if not likely.
Professor Chadwick said: “The news that Ferrari could quit F1 in the light of changes being proposed by the sport's new American owners is the latest sign of a sport on the cusp of fundamental change.
“Following the sport's 'Ecclestone years', F1 has needed to change and it has always seemed likely that whatever changes are implemented will inevitably cause turbulence among a range of stakeholders.
“Ferrari's concerns appear to have arisen specifically because of Liberty's (F1's new owner) desire to address cost issues by proposing new engine design specifications. Yet the simpler design, associated with wider cost cutting, is at odds with the Ferrari brand, its image and its positioning in the market place. If such measures are ultimately implemented, Ferrari officials will be anxious that they will detract from the car brand and undermine its business.
“That said, there is rather more to this issue. Thus far, Liberty appears to be making such decision unilaterally, and Ferrari's threat could be seen as a warning shot across the bows of the American company. Ferrari is no doubt keen to ensure that changes to the sport and its regulations are collaboratively negotiated and not imposed.
“As the elder statesman of F1 (Ferrari is the only team to have competed in the sport since the first official world championship in 1950), the team may perceive that it has a responsibility to serve as a guardian of the sport.
“Yet there may be other issues too, notably the way in which the sport is governed moving forward from here. In the past, there have been threats by the sport's leading teams that they may breakaway and form a rival series. Not only has this been a measure of their power and control, but also of their dissatisfaction in the way the sport has been run. Liberty would be wise to acknowledge this, as the last thing it needs is for its biggest and best teams to be led away by Ferrari to compete in a rival F1 series.
“In the time since Liberty acquired F1, the progress it has made in changing the sport has been relatively low-key - evolutionary rather than revolutionary. However, with the latest stories about Ferrari now swirling, Liberty must be careful not to prompt a revolution of its making which may, ultimately, undermine its investment in the sport.”
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Sam Wood
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