Formula 1 teams 'are in survival mode', says Whitmarsh

Seven of the 11 Formula 1 teams are struggling financially to the extent that they are in "survival" mode, says McLaren team boss Martin Whitmarsh.

Whitmarsh, who is also chairman of the Formula 1 Teams' Association that represents the majority of the sport's competitors, said: "It's tough.

"We're in the world of advertising and you only have to see how advertising is worldwide. The rate card is down.

"We have taken some measures, but I think it's going to be tough for some."
Whitmarsh reckons several teams will find it hard to "have a viable business model for a few years", while his opposite number at Caterham, Cyril Abiteboul, thinks world champions Red Bull are doing well financially but "everyone else is suffering".
Whitmarsh says much of the present problem is a hangover from the 2008 global financial crisis. Advertising and sponsorship contracts signed before the crash have come to an end. New backers are thin on the ground, while existing ones are not willing to pay top dollar for the privilege of continuing.
Formula 1 operates under a Resource Restriction Agreement that limits staffing levels, how much research and development teams can do and the amount they can spend on external suppliers.
But that did not prevent Spanish team HRT from closing its doors at the end of last season. Others are known to be struggling, too.
Read more