Unintended Consequences & Un(der)-Reported Stories in Formula 1
Natural Aspiration 15: What Impacts Will Death of Dietrich Mateschitz and UK Political / Economic Upheaval Have on Formula 1?
Murray Walker, the long-time voice - and what a voice he possessed! - of Formula 1, died last spring, on the eve of the 2021 season. His endearing malapropisms, Spoonerisms, and various flustered Yogi Berra-isms are (in)famous parts of the tapestry of Grand Prix history. My favorite Murray utterance is his heartfelt congratulations toward his family friend and Pizza Hut lunch date as Damon Hill’s Rothmans-liveried Williams took the checkered flag at Suzuka in 1996, thereby securing Hill’s World Drivers’ Championship (WDC): "And I've got to stop, because I've got a lump in my throat!" Not even the slightest pretense of impartiality on Walker’s part!
Walker’s most prescient Formula 1 observations, however, relate to uncertainty and unintended consequences; there are two key remarks:
Anything can happen in Formula 1, and it usually does.
If is a very long word in Formula One; in fact, if is F1 spelled backwards.
Clearly, Murray understood the outsize role that unintended consequences and chance play in Formula 1; many series observers - and even “journalists” - flit from one cause célèbre to the next without stopping to ponder their broader implications.
There were three significant discussion points from this past weekend’s United States Grand Prix at Circuit of the Americas in Austin:
The interminable row over Red Bull Racing’s cost cap breach relating to the 2021 season; I intend to write about this after the matter has been resolved fully.
Red Bull Racing securing the 2022 World Constructors’ Championship (WCC) after Max Verstappen clinched his second straight WDC a fortnight earlier at Suzuka.
The death of Dietrich Mateschitz, Red Bull co-founder and owner of the Red Bull Racing and AlphaTauri teams, as well as Red Bull Powertrains.
Preoccupation with the superficial talking points above has perhaps prevented investigation of two broader questions on my mind:
How will Mateschitz’s death upend the proverbial Formula 1 chess board? What will become of Red Bull Racing, to say nothing of the sister AlphaTauri team and the nascent Red Bull Powertrains division? Does this represent an opportunity for Porsche to reengage discussions with Red Bull Racing?
Amid the backdrop of substantial political and economic entropy in the United Kingdom, how might Formula 1 - particularly the seven (of ten total) teams headquartered in the UK - be impacted?
Dietrich Mateschitz had a tremendous impact on Formula 1, although he was rarely seen in the paddock in recent years; as Edd Straw observes:
Although the minority shareholder in Red Bull, which he owned 49% of, he had full management control and was the driving force behind its widespread motorsport activities.
Mateschitz was a team owner, race promoter, star-maker and sponsor who changed F1. His political, sporting and financial power has helped to shape the landscape of 21st century grand prix racing, impacting not only what happens on track and who the key players in the paddock are, but also the way the wider world sees a sporting entity that might otherwise have been left behind in a changing world. Red Bull was once a disruptive outsider but rapidly became a pillar of the establishment, as only truly potent forces for change do.
Mateschitz’s countryman - and rival - Toto Wolff eulogized him thusly:
[He was] one of the greatest and most visionary entrepreneurs in the world. What Dietrich Mateschitz did for Formula 1 was unprecedented.
The orthodox view within Formula 1 is that Mateschitz’s health had been in decline for some time, and that he and his teams had had ample time to plan for a post-Dieter world. Another Dieter - that is, Dieter Rencken, the well-resourced South African journalist with intimate Red Bull Racing ties - suggested on a recent podcast appearance that Mateschitz’s Formula 1 interests had been transferred into a trust, ensuring status quo for Red Bull Racing, AlphaTauri, and Red Bull Powertrains. Didi’s last pivotal act was snubbing Porsche after the Germans’ bid to partner with Red Bull Racing on the upcoming 2026 powertrain regulations had outlived its political usefulness (in my vigorously argued opinion, that is).
So, what might happen?
Is there any guarantee that the majority owners of Red Bull - the Yoovidhya family - will want to continue sponsoring Red Bull’s Formula 1 efforts?
In any circumstance, will Red Bull Racing enjoy the fulsome budget that it has in recent years going forward (be mindful that many expenses are exempt from the cost cap and a competitive works team now operates on a ~$300 million annual budget)?
How will the cost cap “scandal” play out for Red Bull Racing? Will there be a sequel next year pertaining to the 2022 season?
Could this bring about the departure of key leadership personnel?
What if the new Red Bull Powertrains division is ultimately unable to produce (competitive) Formula 1 Power Units from 2026?
What will happen to AlphaTauri? Might Honda purchase the team and develop a partnership with the Andretti entry bid? Alternatively, Porsche has allegedly elected to continue its hunt for an actionable team to purchase or partner ahead of 2026…
If AlphaTauri were sold, would Red Bull Powertrains supply another team? If Red Bull Powertrains only supplied the Red Bull Racing works team, it would be on the back foot in terms of data collection versus the likes of Mercedes High Performance Powertrains, which supplies four teams. This will be especially important with all-new Power Units.
In the best-known passage of The Life and Death of King Richard the Second, William Shakespeare bequeathed to the future a veritable treasure trove of descriptions of England (emphasis mine):
This royal throne of kings, this scepter'd isle,
This earth of majesty, this seat of Mars,
This other Eden, demi-paradise,
This fortress built by Nature for herself
Against infection and the hand of war,
This happy breed of men, this little world,
This precious stone set in the silver sea,
Which serves it in the office of a wall,
Or as a moat defensive to a house,
Against the envy of less happier lands,
This blessed plot, this earth, this realm, this England…
Whether referencing England or the broader United Kingdom today, however, the only phrase above that rings true is “this little world.” Emphasis on “little.” In the wake of Brexit, Boris Johnson’s bizarre tenure as Prime Minister, the farcical, weeks-long follow-up of Liz Truss’s leadership, the death of Queen Elizabeth II, and the accession of King Charles III, our brethren across the pond have had a rough go of things lately. Rampant inflation, a metastasizing cost of living crisis, and a weakening British Pound have only added to the misery. New Prime Minister Rishi Sunak has his work cut out for him.
It is often said that the Formula 1 is a global sport - now (recently) owned by Americans (Liberty Media) - but run by Brits. Certainly, the Brits control the apparatus of Formula 1 media, as evidenced by the Sky Sports broadcast licensed in America (and elsewhere), as well as the “official” Formula 1 broadcast channels, to say nothing of the never-ending coverage of the Three Lions currently competing in Formula 1: Lewis Hamilton, George Russell, and Lando Norris. Even Alex Albon - who is British but races under a Thai license as a legacy of his historical support from Red Bull - receives outsize coverage. Maybe David Croft will start calling him Alex Albion!
This state of affairs does make some sense, as seven of the ten teams are either based in the UK or have significant operations there, even as the garagiste owners have given way to carmaker and OEM ownership:
Red Bull Racing - Milton Keynes (HQ)
Mercedes-AMG - Brackley (HQ); Brixworth (Power Unit HQ)
Alpine / Renault - Enstone (HQ); Viry-Châtillon, France (Power Unit HQ)
McLaren Racing - Woking (HQ)
Aston Martin - Silverstone (HQ)
Haas - Banbury (Facility); Kannapolis, North Carolina (HQ); Maranello, Italy (Facility)
Williams - Grove (HQ)
The others three teams are headquartered elsewhere:
Ferrari - Maranello, Italy (HQ)
Alfa Romeo / Sauber - Hinwil, Switzerland (HQ)
AlphaTauri - Faenza, Italy (HQ)
How might all this upheaval impact the seven UK-based teams (and Formula 1 in general)?
The depressed British Pound will be a boon in terms of the United States Dollar-denominated cost cap.
Significant upticks in energy prices, particularly heading into winter, when teams are busy conceiving their challengers for the upcoming season, will bring pain.
Wages for staff, who are also contending with double-digit inflation and elevated energy bills at home, will also be a source of tension; this will also make it more challenging to recruit foreigners to work for UK-based teams (and Formula 1 itself - the head office is in London, and the television arm of the sport is based in Biggin Hill).
Many Formula 1 teams’ suppliers are situated in the “Carbon Fiber Valley” in and around Oxfordshire; will all of them survive this challenging financial environment? If not, will all teams be able to secure alternate sources of parts and components that aren’t manufactured in-house?
Despite Formula 1’s global reach, many sponsors are UK-based and / or have significant business in the UK; will any of them need to curtail their sponsorship commitments due to faltering customer demand?
McLaren Group’s recent financial woes are well-documented; can the race team withstand a worsening economy, particularly as it looks set to finish behind Alpine in the WCC standings, thereby garnering a smaller share of prize money?
Similarly, Aston Martin Lagonda (AML), the publicly traded car company that Lawrence Stroll controls, is deeply troubled; he also controls Aston Martin Racing (AMR), which is a separate entity that is sponsored by AML. What happens if the other AML shareholders tire of helping him finance his son Lance’s Formula 1 career?
After having written this, I can understand why the UK-based Formula 1 media has devoted little attention to these worrying concerns; perhaps the best advice is simply to lie back and think of England!