How will the current financial crisis affect F1?

[Jamolah]

I just read an article that European governments have bailed out RBS (Royal Bank of Scotland) and are now about to bail-out ING, both title sponsors for Renault.
F1 : Crisis hits another major F1 backer - RENAULT - F1-Live.com

This got me thinking, in the midst of this global financial crisis can we see some of the teams pull from F1 as part of their cost cutting plan?

If I was the CEO of some of these car companies or title sponsors and I was “bleeding out” $500M/year on a non-essential expense, during financial hardship, it would be the first thing I would axe.

And let’s be honest, how many of us will go out and buy a Yaris or a Megan because Toyota and Renault participate in F1?

[Surferjer]

This is media sensationalism. ING is one of the few banks that didn't suffer from the sub-prime bubble burst. They are financially healthy, and the money they got from the government was a reward for running a strong business and to keep outside investors from buying up artificially low stock. It was not a bailout. Do some research.

I'm certain ING will continue to sponsor F1.

[Jamolah]

Originally Posted by Surferjer

This is media sensationalism. ING is one of the few banks that didn't suffer from the sub-prime bubble burst. They are financially healthy, and the money they got from the government was a reward for running a strong business and to keep outside investors from buying up artificially low stock. It was not a bailout. Do some research.

I'm certain ING will continue to sponsor F1.

Chill dude, I'm basing my post on what a reputable site is reporting. I didn't make this $hit up or it wasn't a rumour I heard. The article clearly states that, “ING is receiving $10B Euros from the Dutch government amid concerns it might collapse”. To me this sounds like a bail-out plan.

I was under the impression every bank and financial institution in the world has been effected by the sub-prime market created by the U.S. housing industry. These mortgages were bundled as safe and viable securities and sold around the world markets. So, how can you say ING has not suffered from this? Heck even the top banks in Canada (recognised as having the strongest financial / banking system in the world) have had to take right-downs as a result of the sub-prime market.

[mcoupe]

Drivers will make 10 million dollars a year Vs. $20 million. Fewer parties on private yachts, cheapers "models" from eastern block will be imported, and who knows maybe they will let cigarettes and alcohol ads back on the cars!

[Jamolah]

Originally Posted by mcoupe

Drivers will make 10 million dollars a year Vs. $20 million. Fewer parties on private yachts, cheapers "models" from eastern block will be imported, and who knows maybe they will let cigarettes and alcohol ads back on the cars!

.... that's funny!

[Surferjer]

Originally Posted by Jamolah

Chill dude, I'm basing my post on what a reputable site is reporting. I didn't make this $hit up or it wasn't a rumour I heard. The article clearly states that, “ING is receiving $10B Euros from the Dutch government amid concerns it might collapse”. To me this sounds like a bail-out plan.

I was under the impression every bank and financial institution in the world has been effected by the sub-prime market created by the U.S. housing industry. These mortgages were bundled as safe and viable securities and sold around the world markets. So, how can you say ING has not suffered from this? Heck even the top banks in Canada (recognised as having the strongest financial / banking system in the world) have had to take right-downs as a result of the sub-prime market.

Dude-I'm chillin. Not every bank in the world suffered from the sub-prime mess in terms of an income statement effect, but they all suffered because of the broad assumption you just laid out there. Heck, Google suffered from the mess too. Everyone's stock price got hurt, but some of that is from real loss and some is from perceived loss. In ING's case, it's mostly perceived. ING took a 3rd quarter loss, but it was minimal and certainly not bank-threatening. If you doubt me, take a look at their financials and the most recent opinions rendered by the experts. And there's an excellent article in the WSJ from Monday on the ING part of this. Basically, the Dutch government offered them money to make sure they were stable and ING took it. The government got no voting stock and ING can pay the loan back if and when they feel like it! Must be nice!

Remember-you're "reputable source" is "F-1 Live", not exactly a financial industry expert. The media sees a government handing out money and assumes another bank has bitten the dust.

I would guess if ING pulls back from F1, it will be because of the poll and not because they are in trouble.

[Jamolah]

Originally Posted by Surferjer

Dude-I'm chillin. Not every bank in the world suffered from the sub-prime mess in terms of an income statement effect, but they all suffered because of the broad assumption you just laid out there. Heck, Google suffered from the mess too. Everyone's stock price got hurt, but some of that is from real loss and some is from perceived loss. In ING's case, it's mostly perceived. ING took a 3rd quarter loss, but it was minimal and certainly not bank-threatening. If you doubt me, take a look at their financials and the most recent opinions rendered by the experts. And there's an excellent article in the WSJ from Monday on the ING part of this. Basically, the Dutch government offered them money to make sure they were stable and ING took it. The government got no voting stock and ING can pay the loan back if and when they feel like it! Must be nice!

Remember-you're "reputable source" is "F-1 Live", not exactly a financial industry expert. The media sees a government handing out money and assumes another bank has bitten the dust.

I would guess if ING pulls back from F1, it will be because of the poll and not because they are in trouble.

Thank you for that great response . Why couldn't your initial response have been that clear and helpful?

Well, now I know not to trust F1-Live.com when it comes to financial stuff. I just assumed (remember what that does), they would have done their research, I guess not.

I read an article don’t remember where, that despite the financial crisis Google was doing well. And no, I didn’t read it on F1-Live.com hahahahaha… . Just found it, here is the link:
Google earnings rise 26%, top analyst forecasts - USATODAY.com

[Surferjer]

Originally Posted by Jamolah

Thank you for that great response . Why couldn't your initial response have been that clear and helpful?

Well, now I know not to trust F1-Live.com when it comes to financial stuff. I just assumed (remember what that does), they would have done their research, I guess not.

I read an article don’t remember where, that despite the financial crisis Google was doing well. And no, I didn’t read it on F1-Live.com hahahahaha… . Just found it, here is the link:
Google earnings rise 26%, top analyst forecasts - USATODAY.com

Sorry if I came off poorly in my first response. In one sense you are absolutely correct---all banks suffered. ING's stock is down like 65% from a year ago, but that is largely because no one is investing in the financial sector now. All the fund managers are running away as fast as they can, often with good reason. But that means any bank well positioned for this event also sees it's stock price plummet. There are a lot of good opportunities out there for folks with money. Wish I was one of them.

[Surferjer]

On Google---bingo, you hit it! Google is doing well. But their stock has fallen to 372 from a high a year ago of 747. Did Google really become worth 1/2 of what it was a year ago? nuh uh. If I hit powerball, I'd buy $1MM of their stock in a hurry.

[Jamolah]

Originally Posted by Surferjer

Sorry if I came off poorly in my first response. In one sense you are absolutely correct---all banks suffered. ING's stock is down like 65% from a year ago, but that is largely because no one is investing in the financial sector now. All the fund managers are running away as fast as they can, often with good reason. But that means any bank well positioned for this event also sees it's stock price plummet. There are a lot of good opportunities out there for folks with money. Wish I was one of them.

Hey no probs, man. Thanks for the great reply.

Hahahaha... Yah I wish I was one of those people too. But I prefer putting my savings into a depreciating asset.