27/02/2012
NEWS STORY
For the past few months rumours have been swirling around about teams which haven't paid their bills. It's the usual pre-season chatter with speculation over new backers which may need to come in to rescue some of F1's ailing outfits. However, the rumours are far from an official confirmation of late payment. Now we have the facts.
A report in the Express by Pitpass' business editor Christian Sylt reveals that F1's 12 teams have failed to drive out of the recession. The report is based on new data from business information firm Dun & Bradstreet and it shows that despite having a combined budget of over £1.4bn, none of the teams settled their bills on or before they were due over the period from March to December last year.
It dents the impression that cash is free flowing in F1 and is the first time since Dun & Bradstreet began producing its biannual report in 2008 that none of the teams paid its bills on time. The effect of this is felt far outside F1.
Creditors of teams typically include caterers, designers, equipment suppliers and haulage firms. The longer it takes a company to settle its bills, the higher the likelihood that it could have a cashflow problem.
Surprisingly, the slowest payer is Ferrari - the team with the biggest budget, estimated at over £250m. Ferrari's bills were settled 18 days after they were due, one day later than those of Marussia's F1 team. The five slowest payers all have backing from car manufacturers which indicates that in the current economic climate F1 may not be sustainable for them.
BMW, Honda and Toyota all pulled out of F1 in 2008 as the recession gathered pace and although they have been replaced, annual investment from car manufacturers has fallen since then by an estimated 77% to £206m.
The fastest payer was Toro Rosso. Its bills were one day overdue on average and it was followed by Sauber which paid creditors two days late.
Both slipped from their position in the previous report when Toro Rosso's bills were paid on time and Sauber's were cleared 17 days before they were due. Even Red Bull Racing, the drinks company's championship-winning flagship team, reversed in the credit worthiness standings. Its bills were paid five days late, down from being one day overdue in the previous report. If that is what it takes to win a championship in the current economic climate then reversing payment speed is a trend which is likely to continue.
F1 Teams' Bill Payment Speed
| Team |
Number of days bills paid late (Dec 2009 - Apr 2010) |
Number of days bills paid late (Apr 2010 - Nov 2010) |
Difference |
| Ferrari | 18 | ||
| Marussia | 17 | ||
| Lotus Renault GP | 16 | ||
| McLaren | 12 | ||
| Mercedes | 11 | ||
| Team Lotus | 9 | ||
| Force India | 8 | ||
| Red Bull | 5 | ||
| Williams | 3 | ||
| Sauber | 2 | ||
| Toro Rosso | 1 | ||
| Hispania | N/A |
Source: Dun & Bradstreet