AND so it has come to pass that even the high-speed, high-spending world of Formula One is concerned about the global credit crunch slowing it down.
For a series whose 10 teams have a combined budget of US$3 billion this season alone, the economic crisis is putting a big question mark over funding and future sponsorship.
That is why Formula One supremo Bernie Ecclestone and world motorsports body chief Max Mosley have called a meeting with all the F1 teams after next Sunday's Chinese Grand Prix to discuss 'urgent' cost-cutting measures.
The sport is becoming 'unsustainable' and the plan is to slash spending by 2010, according to FIA president Mosley. For a start, he is proposing that all teams use a standard engine from 2010, with each lasting for half a season.
Currently, engine development and production can take up as much as 50 per cent of a team's budget. Never mind that the engines are important because they represent the technological prowess of the team and its carmaker owner.
But then, there are other ways to stretch those sponsorship dollars. Here are some survival tips for F1 teams to consider:
Before tomorrow's Japanese Grand Prix, each driver should wear his racing suit while having a dip in a hot spring. That way, the team won't have to use a hotel cleaning service, thereby saving on laundry charges.
Fuji Speedway, where the Japanese GP is taking place, is in a pretty remote location. To raise funds for their teams, F1 drivers may wish to provide shuttle services from the train station to the circuit. Fans who pay more will get a faster ride. Fans who pay even more will get a quick tour of nearby Mount Fuji.
The carbon fibre used in F1 cars may be light but it is very expensive to make. To save cost, papier mache could be a good alternative. It won't be as strong as carbon fibre, but since everyone will be using the same under-powered engine, it should work just as well.
Official F1 tyre supplier Bridgestone has launched a special green-groove tyre for this weekend's race in support of the environmental initiatives in Formula One. But to actually be green and save money, F1 should use fewer tyres.
One way to do that is to tell the teams that whoever clocks the highest mileage on a set of rubber will be the winner. And the prize? A year's free supply of tyres.
Toyota, which owns Fuji Speedway, is said to be the team with the biggest budget in F1. But since entering the sport in 2002, it has not scored a single Grand Prix victory.
From 2009 on, the world's No 1 carmaker should halve its F1 budget without any fear of affecting its results. After all, half of zero is still zero.
This article was first published in The Business Times on Oct 11, 2008.
