The glittering world of Formula One has seen many teams come and go, it is the nature of the beast. F1 is a beast that is cut throat at best and its a game where only the financially fittest survive.
Despite all the billions flowing into the sports bank vaults it doesn’t stop the smaller teams from struggling, finally that struggle came to an abrupt end for Marussia F1 as it was placed into administration.
Marussia runs at the back of F1’s 22 car field, it is estimated that running a small team like Marussia costs around £50 millons per year.
Marussia F1 is based in Banbury, England and administrators, FRP Advisory, said the team would be forced to miss the US and Brazilian Grand Prix.
Nearly 200 jobs are at risk however FRP has made a statement which seems to confirm no redundancies have been made and that all staff will be paid in full until the end of the month.
FRP administrator, Geoff Rowley – said: “Whilst the team has made significant progress during its relatively short period of operation, the highlight of which included securing two constructors’ championship points in the current F1 season, the position remains that operating a F1 team requires significant ongoing investment.
“With the existing shareholder unable to provide the required level of funding, the senior management team has worked tirelessly to bring new investment to the team to secure its long-term future, but regrettably has been unable to do so within the time available. Therefore, they have been left with no alternative but to place the company into administration.
“The joint administrators have assessed that, given the current financial circumstances of the group, it is not viable for the Marussia F1 team to participate in the next race, the 2014 Formula One United States Grand Prix, due to take place this weekend in Austin, Texas.
“The company will continue to operate while the joint administrators assess the longer-term viability of the company in its present form. Following Austin there are two further rounds of the 2014 championship remaining, in São Paulo and Abu Dhabi, and the team’s participation in those races will depend on the outcome of the administration process and any related negotiations with interested parties in what is a very limited window of opportunity.
What the future holds after the following month is difficult to determine as FRP said “The ongoing staff position will however, be dependent on whether the company can secure new investment in the limited time available,”
This is the second F1 team to go into administration, last week Caterham F1 called it quits, it’s administrators are seeking fresh investment, the team is set to miss the US GP, like Marussia its fortunes uncertain.
A budget cap of £40 million pounds was discussed back in 2010 to allow new teams into the sport and new teams did find their way in. But wrangling over the finer details meant this ideal was soon cast out of the window as the bigger players in F1 refused to be capped at any cost.
Marussia’s best result to date was at this years Monaco Grand Prix where Jules Bianchi secured a 9th place finish. A points finish for a team like Marussia is as good as a win, points mean valuable prize money. However Bianchi is lying in a hospital in Japan, his condition critical but stable after sustaining a severe head injury during a wet Japanese Grand Prix, his fate lying in the balance in one world to the next like that of his team.
Now the grid will feature 18 cars when the F1 circus pitches its tent at this weekends US GP in Austin Texas.