[F1] Formula 1 Boss Bernie Ecclestone says he is to blame

Bernie Ecclestone: I don't know how to fix F1 finances
Bernie Ecclestone: Big F1 teams must make sacrifices in cost crisis


Marussia and Caterham have gone into administration, reducing the grid for Sunday's US Grand Prix to 18 cars.

Their collapse has caused anger among some surviving teams, who say the sport's revenues are not split fairly.

Ecclestone said: "There is too much money being distributed badly - probably my fault."

He added: "Like lots of agreements people make, they seemed a good idea at the time. I know what's wrong, but don't know how to fix it."


Ecclestone has struck private financial deals with all the teams over the last few years and the result has been a revenue split that is heavily in favour of the big teams.

The contracts are secret, but Ferrari are believed to have been paid more than $200m (£125m) for the 2013 season, in which they finished third in the championship, including $90m just for turning up.

By contrast, Marussia earned a reputed $14m (£8.8m), and Caterham a little more than double that.

The costs for a midfield team to compete in F1 for a season are believed to be about $120m (£75m).

Ecclestone dismissed claims from Force India deputy team principal Bob Fernley that they and the Lotus and Sauber teams might boycott Sunday's race in the USA - which World Championship leader Lewis Hamilton starts second, behind Mercedes team-mate and title rival Nico Rosberg - in protest at the financial problems afflicting the sport.

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Bernie Ecclestone says top Formula 1 teams are going to have to make sacrifices to solve the cost crisis, and admitted financial structures he had put in place were wrong.

In a surprise confession that commercial arrangements agreed with teams had contributed to F1's current woes, he said that only assistance from the big outfits could now help him sort matters out.

"The problem is there is too much money probably being distributed badly - probably my fault," said Ecclestone in a lengthy media briefing at Austin on Saturday.

"But like lots of agreements people make, they seemed a good idea at the time."

When asked if he regretted the deals in question, he replied: "If the company belonged to me I would have done things in a different way because it would have been my money I was dealing with.

"But I work for people who are in the business to make money."

REDISTRIBUTION OF MONEY

One idea Ecclestone mooted is for the big teams to contribute a share of their prize money towards a fund for the smaller outfits.

"We have to open the eyes of those people in a position to turn the lights on and off to what they need to do," he said.

"I wouldn't want to be in a position where I was too strong, F1 disappears and someone says it is because of you it disappeared.

"I said to people getting a chunk of money that I would like to take a percentage of their performance-related payment.

"I would put that money together to divide among the three or four we know are in trouble but are not going to run away with the money, and then I will put in the same amount of money."

However, Ecclestone admits that getting such a fund together would not be easy because F1 rules allow teams to block such changes.

"We have to decide the best way to sort this whole thing out. Frankly, I know what's wrong but don't know how to fix it.
"No one is prepared to do anything about it because they can't. The regulations have tied us up.

"We can't all sit back nicely relaxed and think the problem will go away. It's not like having the flu and taking a few tablets and it will disappear.

"I think the situation is such that if enough people want it resolved, we can resolve it. It's a case of the people that are involved in the sport will have to want to look after the sport and be prepared to make some sacrifices.

"I would tear all the contracts up. Take all the money, pay all the teams' debts that should be paid so people haven't suffered because of Formula 1."

NO BOYCOTT THREAT

Ecclestone denied there was a threat of a boycott this season, even though Force India's Bob Fernley repeatedly suggested it was an option. (SEE BELOW)

"Forget all that crap," Ecclestone said. "I promise they will be racing. They will be racing, I give you a guarantee - but I worry if they will be racing next year."

He also played down the possibility of three-car teams.

"Forget third cars," he said. "Nobody can afford two cars."

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Formula 1's smaller teams are plotting how best to respond to the sport's cost crisis amid growing frustrations at the attitude of grand prix racing's key figures.

Although the demise of the Marussia and Caterham teams has thrust F1's financial problems into the spotlight, it does not appear to have prompted any hint of willingness to make changes from Bernie Ecclestone or top teams.

The midfield squads' anger has mounted over the United States Grand Prix weekend with top teams having made clear in press conferences that they see little reason to do anything in response to the events of recent weeks.

The growing prospect of no action being taken has left Force India, Lotus and Sauber deeply upset, and these teams are on the verge of revealing a plan to force the issue with the FIA and Bernie Ecclestone, without hurting their own businesses.

It is unclear exactly what they plan to do, but sources suggest that all avenues will be pursued to try to make it clear to the big teams and sport's leaders that action is needed to prevent F1 destroying itself.

Force India's deputy team principal Bob Fernley said that the anger of the teams about the fact that F1's chiefs were not responding to their fears for the future meant they had to hit back.

"There has to be things that bring it to some sort of conclusion, and dialogue opening up," he said.

"Whatever happens in F1, as we stand here today, it has to change. Nobody is coming to us saying we have to protect you."

When asked if going as far as a race boycott of any of the final three races of the season was an option, Fernley said: "Nothing is off the table.

"Everything and anything is possible. But the team owners need to sit down themselves and decide what action they need to take - and make sure that everyone is informed properly."

Although well aware that any move to disrupt the Austin race could cause big damage to F1 in the United States, as well as hit their own competitive ambitions, he was equally keen to point out that the sport's actions were hurting the teams.

"This is the last thing we want to do...there is no question of that," he said.

"You have three owners here that are passionate about racing, and that have supported F1 for many, many years in different formats.

"The last thing they want to do is damage it. But at the moment F1 is damaging them big time: the silence is deafening from people reaching out to help."

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Battle lines are being drawn as F1 reacts to the 'crisis' of collapsing teams.

But Red Bull's Dr Helmut Marko declared unequivocally ahead of the US grand prix: "We are ready."

He was referring to the concept of three-car teams, as he admitted to Germany's Auto Motor und Sport that it might cost the sport's big players up to $30 million each.


The mood ahead of the US grand prix is therefore dramatically tense, with some declaring it the sport's latest 'crisis' following the collapse of the backmarkers Marussia and Caterham.

David Richards, the Prodrive chief who told Autoweek that he was approached about saving the embattled teams, said he believes at least "one other team" is also in dire straits.

The feeling in the paddock is that the teams are separating into two distinct camps, and according to the Times newspaper, the anger of the 'have nots' has now descended into a boycott threat.

"It is 50-50 whether it happens," the newspaper quoted one executive as saying at the scene of the US grand prix, "but what else is there?

"We haven't got anything to lose, have we? No one listens, so the only thing we can do is take action that CVC will understand. It would be painful but it would make the point."

Reuters quoted Lotus team owner Gerard Lopez as confirming that while a meeting took place, he was "not aware" of the boycott threat.

The BBC, meanwhile, quoted Force India's Vijay Mallya as also playing down the US boycott, but he hit out at the "arrogance" of the big teams who are resisting the idea of cost control.

"There are many fans out there who support the smaller teams and they need to be respected. The small teams cannot be taken for granted," he insisted.

But Red Bull's Marko thinks the three-car solution is a good route, even for improving the spectacle and popularity of F1.

"Imagine if we could put a NASCAR driver like Jimmy Johnson or Tony Stewart in the (third) car here in the US," he told Germany's Auto Motor und Sport.

"The promotional effect would be huge."

Force India boss Bob Fernley says F1 is at a crossroads

Lotus team principal and owner Gerard Lopez said: "Unless someone breaks and engine or a gearbox, there are going to be 18 cars on the grid tomorrow."

Force India team principal Vijay Mallya told BBC Sport he endorsed Lopez's remarks.

Lopez added: There is a lot of frustration up and down the paddock. It is a big thing but some people have probably tried to make a conspiracy theory about it. For sure we're going to race this weekend and that's it.

"We now need to stop talking about stuff and do something. I hope something can be done in the next couple of weeks."

And the chances of Sauber not racing must be considered very small after their driver Adrian Sutil made it into the top 10 in qualifying for the first time this year.

That gives the Swiss team a good chance of scoring their first points, which go down to 10th place in the race, in what has been the least successful season in their history.

It is suspected Fernley is keen to fire a shot across the bows of F1 commercial boss Bernie Ecclestone, who came up with the current split in revenues and has struck individual financial deals with the teams in the past few years.

But Fernley's approach has been criticised by Christian Horner, team principal of world champions Red Bull, who said: "If you are going to threaten something, you have to be prepared to go through with it."

Later Ecclestone responded to the threat by saying: "Forget all that. I promise they will be racing. I give you a guarantee - but I worry if they will be racing next year."




The Texas race is one of the most important on the calendar in commercial terms because it provides a foothold into the largely untapped potential of the vast US market.

The event is in only its third year, and was established following five years without a race in the States - Indianapolis failed to renew its contract beyond 2007 following the catastrophic 2005 race there, in which only six cars took part because of a row over tyres.

Challenged on the wisdom of such a plan in that context, Fernley said: "Look, those team owners are three of the most dedicated Formula 1 fans in the world and don't want to hurt F1. But at the moment, F1 is hurting them."

F1 has revenues of $1.8bn (£1.1bn) and 63% is passed to the teams, but it is the way that money is shared out that causes problems for the less successful outfits.
Nico Rosberg


Red hot Rosberg seals USA pole

The money is split according to a complicated formula related to a team's recent results and historic success, and which is heavily skewed in favour of the big teams.

Ferrari have received more than $200m (£125m) from F1's owners this year - including a payment of about $90m just for taking part - while Marussia are believed to have received only about $14m (£8.8m).

Marussia and Caterham are not racing in the US or Brazil next week and although they are said to be hoping to return for the final race in Abu Dhabi, this is considered unlikely.

Adding to the smaller teams' problems is the fact sponsorship money has been hard to generate since the global financial crash at the end of the last decade, and the increased costs caused by the new turbo hybrid engines this season, which have at least doubled in price compared with last year.

Force India have also long complained that they are excluded from decision-making because they do not have a presence in the strategy group of six teams that proposes rule changes.

But they will be promoted on to it next season because they will finish sixth in the constructors' championship, and will therefore take from Lotus the slot reserved for the best-placed team not among the five permanent members, who are Ferrari, Red Bull, Mercedes, McLaren and Williams.

The contracts signed by the teams mean that Red Bull, Ferrari and McLaren may have to run third cars in 2015 if the grid is below 20 cars - it is now at 18 following the demise of Caterham and Marussia.

Ecclestone said he had proposed that the big teams supply cars to the smaller teams if the grid dropped below 20 cars, but that he would rather the grid stayed at least at that level.