F1 News
'Formula 1 is not such a devouring money pit anymore'
- GPblog.com
Formula 1 currently consists of ten teams and the most recent change is the acquisition of Williams by Dorilton Capital. However, they will continue with the Williams name. The last new team in Formula 1 was Haas and that was back in 2016. So the entry rate into the sport is low and it will take some time before new teams join.
Setting up a team takes two years
At least that's what McLaren CEO Zak Brown expects, according to RaceFans. "I think it takes – unless you’re acquiring a team, which obviously has just happened with Williams – about two years to build up. And I’m not hearing of anyone that’s that’s imminent to enter.
"It takes time and a lot of money and with the pandemic, I'm sure those interested will wait and see."
Nevertheless, Brown does see potential in the approach of Liberty Media and the FIA. "I do think with the changes that Liberty and the FIA have introduced Formula 1 is much more attractive to enter and be competitive in and ultimately create franchise value and potentially make a little bit of money."
F1 is becoming more attractive
"And I think having a Formula 1 team that can be competitive, that isn’t a money pit – which is where Formula 1 has been. You want to be competitive, it’s a money pit, and that’s not attractive. Now, I think Formula 1 is set on a journey where with a fairer revenue distribution, tighter rules, and budget cap."
All of that, according to Brown, is helping very well to make the sport more attractive. Finally, he says: "There’s no reason why other racing teams won’t now start to look at Formula 1 and see that it’s a viable business model. So I do think we will see more teams, but I think it’s a few years away."