Formula 1 teams in slow lane over bill - Mercedes-Benz Forum

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post #1 of 3 (permalink) Old 01-08-2011, 07:02 PM Thread Starter
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Formula 1 teams in slow lane over bill

Formula 1 teams in slow lane over bills | Mail Online

Sunday, Jan 09 2011

By Christian Sylt and Caroline Reid
Last updated at 10:23 PM on 8th January 2011

Being fast on the track is no guarantee that speed will be involved when it comes to paying bills.

Red Bull Racing, which won last year's Formula 1 drivers' and constructors' titles, was the only racing outfit to pay its suppliers on time, according to a report by business information firm Dun & Bradstreet.

In fact, the research shows that Red Bull, based in Milton Keynes, Buckinghamshire, improved payment rates by one day in the second half of last year.

The team's improved financial performance stemmed from a boost to its budget from billionaire co-founder Dietrich Mateschitz.

Creditors of F1 teams typically include caterers, designers, equipment suppliers and haulage firms.

The data, which compare the rate of payment between December 2009 to April 2010 and between April to November last year, reveal that although the economy has begun to pick up, the creditworthiness of F1 teams has not.

Despite having budgets of up to £250million, teams paid their bills on average 28 days after they were due. This is four times slower than their payment time in the previous Dun & Bradstreet report. The worst offender was Norfolk-based Lotus, which joined F1 last year and paid its bills 180 days late.

According to Dun & Bradstreet, Renault had the biggest increase in late payment, with its bills settled on average 14 days late.

The team needed two loans, totalling more than £18million, to stay on track last year as the French car giant reduced its investment in F1.

Britain's Williams team had the second-biggest increase in late payment after its financial woes worsened because of the departure of sponsors. Even Ferrari and Mercedes settled late.

Backing by billionaires did not ensure prompt payment. Virgin Racing, supported by Sir Richard Branson, paid eight days late.

Northamptonshire-based Force India, owned by Indian billionaire Vijay Mallya, paid bills on average 30 days late.

One supplier, who did not wish to be named, said his company has had to pay its own staff late as a result. 'If Vijay sold his yacht, it would keep the team going for a couple of years,' he said.

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post #2 of 3 (permalink) Old 01-08-2011, 08:19 PM
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Businesss as usual .....let the suppliers wait ...
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post #3 of 3 (permalink) Old 01-09-2011, 04:28 PM
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The check is in the mail!!!!
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