![]() However, as we also revealed, there are significant exclusions from the cap so time will tell whether it is just a speed bump or if it actually manages to put the brakes on further increases in spending. In turn, it would boost the teams' chances of attracting sponsors and McLaren is one of the best-performers at this as we have reported. It is in favor of it for the good of the sport as the more level the playing field, the better the racing should be and the more interest there will be in F1. Ironically, McLaren has been one of the biggest supporters of the budget cap even though it currently spends far more than will be allowed. It has raced back up the standings since it switched to Renault engines in 2018 and next year it will return to ones made by Mercedes. It was a gamble which failed to pay off for McLaren as its performance reversed. It was first used in 2014 and the following year McLaren switched from Mercedes to Honda which returned to F1 after a five-year hiatus. McLaren's performance has also reversed but this was driven by the introduction of the 1.6-liter V6 hybrid engine which currently powers F1 cars. Despite being powered by the championship-winning Mercedes engines, it has finished in last place for the past two years. On track, the problems for Williams haven't slowed down. Williams and McLaren have similar headcounts despite having vastly different budgets As the graph below shows, this gave Williams even more employees than McLaren. The high point came two years later and was driven by a surge in staff numbers which hit a record 719 in 2016. ![]() Net losses at Williams peaked at $51.9 million (£40.3 million) in 2014 but its costs still hadn't hit top gear. Williams made a $38 million (£29.5 million) net profit in 2005 but its financial performance went downhill after BMW switched its support to Sauber at the end of the year. ![]() ![]() However, the profit Williams made in 2018 was a long way off its peak which came 13 years earlier when backing from BMW helped it snag sponsorship from blue chip brands like HP, Budweiser and FedEx. Unlike most businesses, their hallmark of success isn't profit but performance on the track. It was a particularly impressive performance given that the business model of most F1 teams is to spend all the revenue they make in a bid for victory. McLaren has had bigger profits and bigger losses than its independent rival Williams ![]()
0 Comments
Leave a Reply. |