JANUARY 17, 2005
Why Shnaider would be mad not to buy Jordan
If the price is right, Russian tycoon Alex Shnaider would be mad not buy Jordan Grand Prix. There are simply too many advantages in buying the team. While most of the big teams produce their own components in-house, Jordan has traditionally outsourced a lot of its componentry and is much more of an organizer and assembler of racing cars rather a fullscale manufacturer. Jordan designs and researches the cars and then outsources the parts. The team does have the capacity to develop the cars in-house but the bulk of the manufacturing is done elsewhere, a decision which was taken because Jordan felt this was a more economic route that doing everything itself. This has meant that the team must have a very good quality inspection and logistics operation in order to get everything done in the time available. This means that Midland F1 would not have to abandon its deal with Dallara.
Jordan does have plans for a new windtunnel and, we believe, there is planning permission for a new factory with the old facility then being turned into the team's windtunnel. This means that Midland can have many of the elements of an F1 team without having to accept too much old equipment. Jordan does have an operational windtunnel at Brackley although it is rather outdated despite considerable investment over the years. It would nonetheless be a useful second tunnel for a well-funded team.
But these are advantages of limited value alongside the basic logic of buying a team. If Shnaider sets up his own operation it will be the 11th Formula 1 team. It will have to pay a deposit of $45m and will receive no financial benefits from the Formula One group for three years. This is worth at least $50m. Thus buying Jordan would mean that the team would have a much healthier cash-flow once the initial purchase is out of the way. There are also sponsors that might help fund the team this year while Shnaider and his team get Russian companies to join the party.
The other point is that even if Midland goes it alone there is no guarantee that it will get any TV money because the Formula One group only pays for the top 10 teams and a new team is likely to struuggle to beat even Minardi.
The other huge advantage is that a deal with Jordan would give the team a political voice at a time when the politics of F1 are tough. The 11th team does not get a voice on the Technical Working Group nor the F1 Commission.
The logic therefore is that a deal with Jordan is the smart thing to do.
|Print News Story|
WHY SHNAIDER WOULD BE MAD NOT TO BUY JORDAN
HONDA REMAINS A MEMBER OF THE ANTI-TESTING ALLIANCE
THE TRUTH ABOUT THE JORDAN-MIDLAND SITUATION
BAR NEEDS SUCCESS TO KEEP BUTTON
AN ALTERNATIVE TO FORMULA 1
THE LAW ACCORDING TO BAR
BIG PROBLEMS FOR BARCELONA
JORDAN - NO DEAL