MEDLAND: Behind Haas’ decision to stay in Formula 1

On Wednesday morning, Formula 1 confirmed that all 10 teams currently at the start have agreed to the new Concorde agreement, which is committed to the sport by 2025.

Prior to that announcement, there was no formal word from Haas that he expressed his intention to remain in Formula 1 beyond the end of this year, and many indications actually pointed to the contrary. Romain Grosjean had already spoken in Hungary last month about the “elephant in the room” that was Haas’ future, and the team did not invest in car development.

Running a team as cheaply as possible in modern F1 is understandable in the face of the global pandemic, but the underdevelopment of the VF-20 did nothing to dispel rumors that owner Gene Haas was unwilling to continue as much in the Investing Sports Promoting its machine tool business.

What has changed? The business side made it.

“It’s a real commitment,” said team boss Günther Steiner to RACER and confirmed Haas’ signature for Concorde. “You can’t just go on and think, ‘Maybe, maybe not’. It’s a real commitment. Okay, we’re fighting right now, but we know why. We just have to (re) build it. Next year may also be difficult, but what the FOM has achieved is very good: at least there is value in the team.

“In addition, the prize money is distributed more fairly than before, so that – if you do a good job – you have the chance to almost call it a business! The first thing in business is that you don’t lose money; then you will earn money. This is how it should be for everyone. That’s what Gene sees, so I think this is a big step.

“Without all these changes, we would not have been here in the future. It’s so difficult – the playing field was so different for the big teams than it was for the small ones; but now with these new regulations, the budget cap, the redistribution of the prize money … if someone wants to pay new fees, then you have a certain value out of it. “

Haas remains the “new” team on the grid and it’s easy to forget that it’s only its fifth season. The second oldest team still on the grid today is Red Bull, which began as the Stewart Grand Prix in 1997. With a strong understanding of that story, Steiner says Haas sees his position in sport today.

“I respect what has been done in the past (and) what has been done there has been done over a long period of time. This financial separation between the big and small teams – it didn’t last for two or three years; this has been done for over 20 years. Now it’s not possible to fix it all at once, but what we fixed is pretty dramatic when you think about it.

“Going from the big teams to these budgets is something amazing. Even the redistribution of money – you can’t do that in the same way for everyone in one contract, but everything went in the right direction.

Significant adjustments to the finances in Formula 1 have prompted team owner Gene Haas (center) to renew his team commitment. Image by Dunbar / Motorsport Images

“Big and small (change) are relative, but in my opinion it depends on where you are. If you’re on the lower end of the ranking, it’s not as big as if you’re fourth or fifth. The biggest change is when you get to these places – where we were in 2018 – and then it’s a big difference. In percentage terms, it’s a good change. It’s neither big nor small, it’s just a good move in the right direction.

“What we brought out is much better for the sport in the future.”

RACER is aware that the historic and successful teams are still receiving additional payments under the new terms of the Concorde agreement, but those payments are less than what the rest of the grid can earn. And with a budget cap of $ 145 million from next season, the need for such a high additional payment will be reduced to a certain extent, especially since even the small teams cannot reach this cap immediately.

“We won’t be at the budget ceiling next year anyway,” says Steiner. “We’ll work towards it, but for now we’re not going to be at the budget cap, so our structure will be the same. I think we are well positioned for the future here because we were never big; We don’t have to come down, we still have room to go up. In my opinion, that’s a good starting position. So I don’t want to change anything in the structure. “

That lack of change extends to this season as well, when Haas will consistently drive the same car with no further developments or upgrades, and focus on a future it is now committed to.

“No, the development plan won’t change for this year. It’s too late anyway. If you go into the wind tunnel now and develop something, it would (not) be ready. Or maybe you can only get it ready for a race or two, but what do you want to accomplish then? You’re spending millions and millions – better invest next year and 2022.

“The big change will be in 2022 with the new car. Next year, with this year’s car freezing, not much will change. We just have to keep our heads down and keep working and focus on 2022 with the new regulations. That will be the big step in which we can level the playing field a little bit.

“It will never be the same, and why should it be that way? Whoever does the best job should be faster. But that is the big change that is coming. “

It’s a change that motivates Steiner, who says the new Concorde deal will create a future for F1 that will give teams more opportunities to showcase their skills instead of being overshadowed by financial clout.

“That’s why I think Gene decided to stay in the sport because he sees it,” he says. “He’s a smart guy; he sees that a future lies ahead and we can deal with it. We are not dependent on outside factors that we cannot change; We can change factors now because we are all very equal.

“We have to be good now, and then we can show how good we are, while at the moment you can’t show it if you don’t have the financial means because there is such a difference between big and small.”

The effect of the new Concorde will not be felt immediately, but it has ensured that the Stars and Stripes will also adorn a Formula 1 car in the coming seasons.