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Saw this today on Bloomberg news:
Le Mans Slowed Down as Recession Curbs Millionaires (Update1)
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By Alex Duff
Feb. 26 (Bloomberg) -- Getting to the starting line may be the toughest part of the Le Mans 24-hour car race this year.
As millionaire amateur drivers see their fortunes dwindle because of the financial meltdown and companies rein in sponsorships, some teams registered are abandoning plans to take part in one of motor sports most storied races in June.
Its not on the cards for us, said Jim Dunford, manager of Benicia, California-based Team CytoSport, which raced in the French event last year. Theres way too much uncertainty in the markets.
Teams are funded by wealthy individuals -- including a former Wall Street banker and French pop singer last year -- and corporate sponsors. Although 82 teams applied for 55 berths, some say they dont yet have money to compete in the endurance race, which pushes cars around the 13.65-kilometer (8.7-mile) track for as many laps as possible in a day.
I dont know anyone who hasnt had problems, said Christian Ried, who owns the Ummendorf, Germany-based Team Felbermayr-Proton.
Race organizer Automobile Club de lOuest announced the entry list at a news conference in Paris today. Officials didnt return requests for comment.
In this years race, Paul Drayson, the U.K.s minister of state for science and innovation, will steer an Aston Martin V8. U.S. actor Patrick Dempsey, a doctor in television series Greys Anatomy, is on the reserve list to drive a Ferrari F430 GT.
Hammered
Three-driver teams need to spend at least 300,000 euros ($382,470) to cover equipment, fuel and other costs, says Martin Short, owner of the Cambridge, England-based Rollcentre Racing squad. His team lost Deutsche Bank AG as a sponsor last year and costs rose after the U.K. pound slid 18 percent in the last year to a record low against the euro.
British teams are being hammered, Short said. We have really taken a hit.
Shorts team, which featured in the 2006 film Le Mans: In the Lap of the Gods, is asking drivers to find sponsorships themselves to secure a place. One possible participants planned agreement with a software company collapsed recently because of the economic climate, he said.
Team CytoSport sold its Lola car after last years event partly because fuel costs and the exchange rate shot holes in the budget, manager Dunford said. Team owner Greg Pickett, who founded sports drink maker CytoSport Inc., was prepared to pay for his own way again this year but the team struggled to raise more money, Dunford said.
Applications Down
To be sure, some teams are vowing not to miss a spectacle that drew a record 258,000 spectators last year and was headlined by a duel between Audi AG and PSA Peugeot Citroen. The race was started in 1923 near the town about 220 kilometers southwest of Paris and was featured in the 1971 movie Le Mans starring Steve McQueen. The event, held June 13 and 14 this year, uses regular public roads instead of a smooth track, making it hard for cars and drivers to complete the entire day.
The number of applications for entry slipped by only six from last year, according to a Jan. 29 statement by Automobile Club de lOuest.
Were a bit affected by the crisis but well be there, Portuguese publishing investor Miguel Pais do Amaral, whose team is named after his Lisbon-based Quifel Holdings. Its a privilege to take part.
Struggling for Backers
Other motor sports are struggling to find backers. Formula Ones ruling body is trying to cut team budgets to 50 million euros as the industry is hit by the credit crunch.
Part of the allure of the Le Mans event is competing against former Formula One drivers, who last year included 1997 champion Jacques Villeneuve and Olivier Panis, he said.
Also racing last year was 63-year-old Austrian Horst Felbermayr Sr. -- whose civil engineering company sponsors Rieds team -- former Wall Street banker Pierre Ehret and French pop singer David Hallyday. Amateur drivers need to cough up about 100,000 euros for a drive, Ried said.
German owner Ried, whose team uses Porsche SE cars, says he doesnt know if he can go ahead with plans for a second team for what he called gentleman drivers as the luxury carmaker reviews its backing.
Were waiting to see what happens, Ried said. Everyone is stretched for money.
Le Mans Slowed Down as Recession Curbs Millionaires (Update1)
Email | Print | A A A
By Alex Duff
Feb. 26 (Bloomberg) -- Getting to the starting line may be the toughest part of the Le Mans 24-hour car race this year.
As millionaire amateur drivers see their fortunes dwindle because of the financial meltdown and companies rein in sponsorships, some teams registered are abandoning plans to take part in one of motor sports most storied races in June.
Its not on the cards for us, said Jim Dunford, manager of Benicia, California-based Team CytoSport, which raced in the French event last year. Theres way too much uncertainty in the markets.
Teams are funded by wealthy individuals -- including a former Wall Street banker and French pop singer last year -- and corporate sponsors. Although 82 teams applied for 55 berths, some say they dont yet have money to compete in the endurance race, which pushes cars around the 13.65-kilometer (8.7-mile) track for as many laps as possible in a day.
I dont know anyone who hasnt had problems, said Christian Ried, who owns the Ummendorf, Germany-based Team Felbermayr-Proton.
Race organizer Automobile Club de lOuest announced the entry list at a news conference in Paris today. Officials didnt return requests for comment.
In this years race, Paul Drayson, the U.K.s minister of state for science and innovation, will steer an Aston Martin V8. U.S. actor Patrick Dempsey, a doctor in television series Greys Anatomy, is on the reserve list to drive a Ferrari F430 GT.
Hammered
Three-driver teams need to spend at least 300,000 euros ($382,470) to cover equipment, fuel and other costs, says Martin Short, owner of the Cambridge, England-based Rollcentre Racing squad. His team lost Deutsche Bank AG as a sponsor last year and costs rose after the U.K. pound slid 18 percent in the last year to a record low against the euro.
British teams are being hammered, Short said. We have really taken a hit.
Shorts team, which featured in the 2006 film Le Mans: In the Lap of the Gods, is asking drivers to find sponsorships themselves to secure a place. One possible participants planned agreement with a software company collapsed recently because of the economic climate, he said.
Team CytoSport sold its Lola car after last years event partly because fuel costs and the exchange rate shot holes in the budget, manager Dunford said. Team owner Greg Pickett, who founded sports drink maker CytoSport Inc., was prepared to pay for his own way again this year but the team struggled to raise more money, Dunford said.
Applications Down
To be sure, some teams are vowing not to miss a spectacle that drew a record 258,000 spectators last year and was headlined by a duel between Audi AG and PSA Peugeot Citroen. The race was started in 1923 near the town about 220 kilometers southwest of Paris and was featured in the 1971 movie Le Mans starring Steve McQueen. The event, held June 13 and 14 this year, uses regular public roads instead of a smooth track, making it hard for cars and drivers to complete the entire day.
The number of applications for entry slipped by only six from last year, according to a Jan. 29 statement by Automobile Club de lOuest.
Were a bit affected by the crisis but well be there, Portuguese publishing investor Miguel Pais do Amaral, whose team is named after his Lisbon-based Quifel Holdings. Its a privilege to take part.
Struggling for Backers
Other motor sports are struggling to find backers. Formula Ones ruling body is trying to cut team budgets to 50 million euros as the industry is hit by the credit crunch.
Part of the allure of the Le Mans event is competing against former Formula One drivers, who last year included 1997 champion Jacques Villeneuve and Olivier Panis, he said.
Also racing last year was 63-year-old Austrian Horst Felbermayr Sr. -- whose civil engineering company sponsors Rieds team -- former Wall Street banker Pierre Ehret and French pop singer David Hallyday. Amateur drivers need to cough up about 100,000 euros for a drive, Ried said.
German owner Ried, whose team uses Porsche SE cars, says he doesnt know if he can go ahead with plans for a second team for what he called gentleman drivers as the luxury carmaker reviews its backing.
Were waiting to see what happens, Ried said. Everyone is stretched for money.
