The Death of Formula One

This year, the Formula 1 (F1) governing body hiked up prices for competitor's licenses so significantly that drivers went into an uproar. According to statements, McLaren-Mercedes driver Lewis Hamilton had to pay $355,000 (USD) for his 2008 license. He paid only $2,686 for his 2007 license.

Now F1 governing body is proposing an increase in team fees from $467,000 to over $1.15 million. The hike in costs is attributed to the rising cost of running the sport and declining world economy.

The $1.15 million would provide teams with: "a marshalling and positioning system; light panels supplementing flag signals; a surveillance data recorder; a secure pit lane and garage communications network; weather forecasting; and a pit wall intercom system." (ESPN.com)

If drivers have to pay exorbitant amounts of money to participate annually, and then teams have to pay more than $1 million per event to enter, the futures of small teams may be doomed for good.

Already teams like Scuderia Torro Rosso, Force India, and others are in financial difficulty. Super Aguri has already withdrawn from Formula 1, leaving two drivers out of jobs and the field with fewer cars.

Not only that, but if the U.S. Grand Prix returns to the F1 calendar, then the addition of the Abu Dhabi event will mean that teams will have to pay almost $2.5 million in addition to what they will have to pay for the continuing 18 events on the calendar.

While manufacturer's like Ferrari, Mercedes, and BMW may not mind putting more money into their programs due to their success (or recent success), teams like the ones mentioned above as well as manufacturers Honda and Toyota may see it as time to leave. Their performance in F1 has been well below average and rising costs provides less of a justification to keep the program going.

If the four teams mentioned above do indeed leave, with one already gone, it will only leave five teams (pending Red Bull and Williams continue), providing half the field that is currently present. If teams begin to drop out, popularity will decline, costs will further rise, and the future of F1 will indeed be in jeopardy.

Action needs to be taken, and is being taken, but Bernie Eccelstone and Max Mosley are headed in the wrong direction.