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If small teams are struggling financially... the suppliers are going to get itchy feet about outstanding bills owed ... you chase the debtors or demand upfront payment or no more services or equipment will be supplied . That is businessCaterham owe money to Renault which is the most expensive engine to lease at over $20m, Ferrari and Mercedes come under that but it is still hefty for teams like Marussia, Sauber , Lotus.That is a real hefty outlay on small teams cashflow. The trouble is the way the revenue is structured by Bernie based on the Constructors positions at only less than 50% of the total TV revenue received - the rest goes to Bernie's own wallet. Add on top the money is only received usually the season after position of the final positions of the constructors championship makes it very difficult for small teams to keep competing when there is little revenue coming back to themHowever the teams have to be able to spend within their means and build contingency plans .
If small teams are struggling financially... the suppliers are going to get itchy feet about outstanding bills owed ... you chase the debtors or demand upfront payment or no more services or equipment will be supplied . That is business
Caterham owe money to Renault which is the most expensive engine to lease at over $20m, Ferrari and Mercedes come under that but it is still hefty for teams like Marussia, Sauber , Lotus.
That is a real hefty outlay on small teams cashflow. The trouble is the way the revenue is structured by Bernie based on the Constructors positions at only less than 50% of the total TV revenue received - the rest goes to Bernie's own wallet. Add on top the money is only received usually the season after position of the final positions of the constructors championship makes it very difficult for small teams to keep competing when there is little revenue coming back to them
However the teams have to be able to spend within their means and build contingency plans .