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Ineos rumoured to pay 700m for Mercedes F1 team


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Eddie Jordan was quoted today, at the Tuscan GP, saying that Ineos will buy out 70% of the Mercedes F1 team....

Thoughts? :)

 

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a fair bit of F1 research & development does eventually find its way into normal road cars, things like antilock brakes,traction control, electrical steering systems for instances, so not totally a moneypit.

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Plus the Merc team ran at a ~30M loss last year, while generating a few billion in advertising. Not really money pit. And starting next year there will be a budget cap.

I still somewhat doubt it's true though, but you never know. Eddie Jordan is rather broken-clock-like.

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I'm an accountant by training - most F1 teams acccounts do not make happy reading, if they have freestanding accounts in the first place. There is a lot of original and applied research done by the teams but any value will go to the parent company; for most F1 teams there is a subsidy in terms of a direct marketing payment or some other transfer of value. 

Ineos is a bulk chemical company; I am struggling to see the synergy, but that may be explained by me being in my homeoffice, bashing away on a laptop and Jim Radcliffe is not!!

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44 minutes ago, jeremy996 said:

Ineos is a bulk chemical company; I am struggling to see the synergy

Jim is making a few forays into sport, e.g. he bought Team Sky out last year.... I wonder what event support vehicle they will use at some point in the future ;) 

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£400 million a year is a fair bit.  I think at some point if you own a massively profitable  company and land rovers aren’t costing you enough this is a good scale up money spend option. 

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I would assume that much of that budget comes out of the profits column and into other expenses and costs, so through the magic of accounting, most of that would just disappear from the tax bill and not cost Ineos all that much.

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1 hour ago, mad_pete said:

£400 million a year is a fair bit.  I think at some point if you own a massively profitable  company and land rovers aren’t costing you enough this is a good scale up money spend option. 

Budget is being capped at $175m from next year.

Going to be interesting....

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