F1Break

A study reported by the Financial Times has revealed some interesting insights about the state of teams' finances in Formula One. Only two - Toyota and Toro Rosso - pay their bills on time, although Red Bull make 99% of their payments by required deadlines.

The study ranks teams based on their payment behaviour and financial statements. In penultimate place is Williams, who last year saw their debt tripple to £25m. Team owners Frank Williams and Patrick Head have had to take two consecutive £800,000 pay cuts, in 2006 and 2007.

The most surprising findings relate to Force India. Whilst many fans might have expected them to rank in last place, it appears that the team are now worse payers than even when they were competing under the guise of Spyker.

It's known that new owner Vijay Mallya increased the team's budget for the 2008 season. But spending also rose, and Force India now pay 99% of all bills late, with invoices being settled an average of 75 days after their due date. This does not compare favourably to the beginning of 2007, when the team were owned by Spyker, at which point they settled bills an average of 50 days late.

Unlike Williams, however, the level of debt within Force India is unknown. Not only have they failed to file accounts for last year, but their 2006 accounting figures are also overdue. During 2005 - the last year for which the team's financial data is available - they made a loss of £19.6m.

Whilst shopping in my local supermarket, I was somewhat surprised to notice a range of Formula One branded toiletries. As it turns out, these products have been on the shelf for over a year now, so I suppose my surprise says more about how regularly I pay attention to the toiletries isle in supermarkets than it does about anything else.

A quick bit of research later, and it transpires that these products are from Alfred Franks and Bartlett, who also market the Slazenger range of toiletries. This suggests that the Formula One brand has come a long way. I could understand someone buying a gift set for a motorsport-loving friend at Christmas, but are fans themselves really spending money on these products every time they need a new can of deodorant?

The range is firmly aimed at the mass market - they're no more expensive than any of the other lines you see heavily advertised, and in some cases, are cheaper. This is an incredibly competitive industry, with brands such as Lynx and Sure having millions of pounds spent on them to establish consumer awareness.

It's a little difficult to see how AFB can compete with their F1 branded line. I could understand, to an extent, Eddie Jordan launching his EJ-10 energy drink. Okay, so it was a failure, but the Jordan Formula One team had a relatively cool image. Can the same be said for the sport itself?

Image is everything with this type of product. In the UK we're constantly bombarded with adverts for mass market men's toiletries, which emphasise coolness and make few, if any, references to the products' performance. When I think of the F1 brand, Bernie Ecclestone tends to come to mind. Not cool, I'm afraid. And I've often heard it said by those who don't follow the sport that they just associate it with big automotive industry. Again, not especially cool.

A cornerstone of NASCAR's success was their arrangement with R. J. Reynolds Tobacco, which ran for 31 years. As well as income from the title sponsorship agreement, NASCAR gained from having R. J. Reynolds market the series alongside their Winston brand of cigarettes. This type of deal with sponsors lead to a huge increase in awareness of NASCAR racing amongst consumers throughout the United States.

If this product range really is proving successful for AFB, then it can only be seen as a positive reflection on the awareness and popularity of Formula One. Both companies gain, with AFB having an established brand to market, and FOM in effect receiving payment for someone else marketing the sport.