Does anyone have any idea about the future of A1 GP as a series?

Given the current global financial and economic crisis will A1 GP survive?

Given all the issues that A1 GP has been having this season from cancelled races, a shortened calendar, huge gaps between races, lack of  high quality venues and race tracks, delayed chassis and missing teams can A1 GP make it?

We know that RAB Capital which is a UK based hedge fund and financial services company has the majority shareholding in A1 GP. Infact RAB bought Sheikh Maktoums shares 2 years ago and injected about US $ 180 million through their Special Situatiobns Fund into A1 GP  RAB Capital owns 80 - 85% of A1 GP.

We know that currrently RAB has incurred enormous losses overall and RAB is in a dire financial position. Their share price is down 91.79%.  Their CEO Phillp Richards who was the driving force behind the deal to acquire A1 GP has stepped down admist mounting losses. RAB Capital,  has also threatened to liquidate its flagship $900 million (£512 million) Special Situations Fund, which is where the funding for A1 GP came from.

"""The Special Situations fund gained notoriety for its ill-fated investment in Northern Rock, the stricken mortgage lender that was nationalised in February. It is thought RAB wrote down its Rock losses long ago. The fund has also all but written down an investment in A1 Grand Prix, a rival to Formula One racing that has tumbled in value."""

 So my question is any idea what all this will mean for A1 GP and the future of A1 GP?

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4727430.ece

"Does anyone have any idea about the future of A1 GP as a series?"

No not even A1GP.

But there again in this climate the same answer can be applied to the same question regardless of what name replaces A1GP.

Even Countries don't know how they are going to survive other than the fact that they can simply print more money and live with the consequences later.

Time will tell!

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A1GP made significant loss through its first few seasons, but then that is understandable considering the collosal outlay to produce such a series but now, I must say its looking dire for A1, heck for the rest of the world and all international motor racing series.

A1GP is unique in the fact it is striving to be on the level of F1 without actually being F1, if that makes sense? Championships like British/Asian/German/French F3, International Formula Masters, GP2, (There are too many) all exist due to F1 and a great many drivers are now turning their attention to A1 as a viable way of sustaining a professional motor racing career. If A1 goes, then what? With ridiculous news such as Max Mosely wanting standardised engines the future of F1 is also hanging in the balance.

These are seriously testing times, liquid cash is scant, investors have gone into their caves and physical assets took shattering blows. 

 The economic tsunami may even claim A1GP, we just have to see how strong their defences are.

 

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One often meets his destiny on the road he takes to avoid it

My gut feeling is that in the short term they are avoiding unnecessary expenditure but are not about to collapse (there seems to be too much activity coming out of A1GP to suggest they are about to fall over), however in the longer term who knows? We can only hope. The MD of one of the better franchises said in the media recently that A1GP is changing the way it does business - like every other business - but that it is not going to fall over any time soon, and despite negative rumours in internet blogs I have not seen comments from anyone in a more informed position.

They must be approaching positive cash flow considering franchise fees (assuming the teams are all paying up) and race fees. For example pretty sure the Chinese government will be paying quite a bit for Chengdu. According to A1GP they would have balanced the books last season if it wasn't for purchasing the new Ferrari based machinery.

Now that the new equipment is sourced and much of the setup is in place hopefully if the worst does happen and it falls over then someone else will view it as a good investment and take it over.

What surprises me is the lack, again, of decent merchandise. Several ways to generate some cashflow are simply not taken. I can only speculate that A1GP is waiting for the very big fish, but is currently not having the right bait to do it with.

A1 is still a fledgeling series. Perhaps with some leniency towards people who want to create official A1 sanctioned products, more can be achieved.

Instead A1 blocks things like game development, appearance of diecast cars etc. Things that could/ would lead into A1GP being better known over the world.

And in advertising, they allways say: the way to a wallet is through the children ;) SO: get Mattell to create those Hotwheels 1:64 cars and get them in before christmas Worry about the costs later. Get Tamiya to build the radiocontrolled car and model kit, get Scalextric to allso do the new car, and switch to Minichamps for the 1/43 and 1/18 diecast cars (much better worldwide network than Amalgam )

 

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Orange: the most beautifull color in the world
http://www.a1podium.com
http://www.all4racingforum.com
http://www.dutcha1gp.nl
http://www.holland4racing.nl

Part of the deal with Ferrari was relating to merchandise. Would be nice to see some co-branded merchandise in every Ferrari sales outlet, but am not holding my breath.

Agree that there should be more things on the market like kids model A1GP cars and an A1GP video game. One area where they have not done well at all is associated products and services.

A1 really only made the huge loss in season 1. Since, it's been in conservation mode, last year waiting for Ferrari to come in, this year waiting for the economic floods to recede. The number of people at the track working in organization has grown exponentially the last couple years. That's what could sink the ship.

About A1 as an alternative to F1...

I think it does makes sense to have them both...

F1 barely accepts new drivers, barely accepts new teams, if at all. As a Team owner/driver, A1 may not be such a bad career decision.

Anyway, with Berney latest requests for standardized engines, KERS and cost reduction, F1 re-structuring could prove more problematic than A1's new car has been.