Pirelli has an F1 budget worthy of a team

Candidate for its own succession, the Italian company will have to face competition from Michelin to continue beyond its current contract.

Before submitting an application, the decision was carefully considered due to the budgets involved, as highlighted by Paul Hembery, Pirelli’s motorsport director, to Autosport: « It was an important decision for us because it is very expensive. You have to remember that we are both a sponsor and a technical supplier. Therefore, our costs are significantly higher than those of a regular sponsor. »

But the leader believes that the total investment made by the company is not recognized at its true value by the different F1 bodies, whether it’s the FOM or the teams: « The problem is that people don’t understand our costs. We receive nothing from the commercial rights holder. Our costs are therefore higher than everyone else’s, except the engine manufacturers. You could certainly run a F1 team with our budget. »

Indeed, the total bill would amount to around 110 million dollars per season. This is why the manufacturer compares its investment with what can be done by other players: « We compare F1 with other sponsorship activities, with what our competitors are doing, what other car companies are doing, and even with people who are not directly in our sector to see where they are going and where they are spending their money. »

The threat of withdrawal is therefore barely concealed: « It is not obvious that we will be there at any cost. We will stay if it makes sense from an economic point of view and if the sport wants us to be there. If they do not want to recognize our role and our investment, then we will go do something else. »

Nevertheless, if an application file has indeed been submitted to the FIA and FOM, it is highly likely that Pirelli has received the expected guarantees, especially since they have been able to forge strong relationships over the past five seasons.

With the participation of www.Racingbusiness.fr