The encyclopedia · Finance & Accounting · Financial decision · 2009–2010
US F1 won a grid slot for 2010 — then never built a car that raced
US F1 was granted a 2010 Formula One entry in June 2009; its investors walked, and on 3 March 2010 the FIA removed a team that never raced.
US F1 · 2010-03
What happened
On 24 February 2009, Ken Anderson, a former Haas CNC Racing technical director, and Peter Windsor, a journalist and former Williams and Ferrari team manager, announced US F1 on the Speed Channel — a bid to put an American team back in Formula One. The FIA granted it a 2010 grid slot on 12 June 2009, and the team signed the Concorde Agreement on 29 July, with a base in Charlotte, North Carolina and a planned second facility at MotorLand Aragón in Spain.
The money ran behind the ambition from the start. Chad Hurley, YouTube's co-founder and the team's primary investor, was still funding it when the plan for two American drivers collapsed and José María López was announced instead with an $8 million sponsorship in late January 2010. The team missed the first two pre-season tests; Bernie Ecclestone had been publicly doubting it since December 2009. By mid-February 2010 Hurley had withdrawn his backing, and sponsor Locstein pulled out on 23 February.
Anderson asked the FIA on 20 February 2010 to skip the first four races and debut in Spain, then on 28 February asked to defer entry to 2011, offering a seven-figure bond. The FIA had already inspected the Charlotte base on 24 February and judged the team incapable of competing: staff were dismissed on 2 March, US F1 was struck from the entry list on 3 March, and it closed on 1 April. On 24 June 2010 the FIA fined the team €309,000 and banned it from all FIA championships; the UK High Court later sold its assets on eBay to pay creditors.
Why it happened
- The team won its grid slot on a pitch, not on funded infrastructure; no car was ever finished.
- When primary investor Chad Hurley withdrew a month before the season, there was nothing left to fall back on.
- The FIA would neither defer the entry nor wait — the inspection ended it.
The lesson
US F1 accepted an F1 grid slot without secured funding; when Chad Hurley withdrew a month before the season there was no car to run, only a €309,000 fine and an eBay auction.
Aftermath
A successor entity, Cypher Group, formed from the remains of US F1 without Anderson or Windsor and withdrew its bid for the 2011 season.
Sources
- Wikipedia — US F1 Team (announced 24 February 2009 by Ken Anderson and Peter Windsor; FIA entry for 2010 granted 12 June 2009; Concorde Agreement signed 29 July 2009; Charlotte, NC base with planned MotorLand Aragón facility; primary investor Chad Hurley withdrew by mid-February 2010; sponsor Locstein withdrew 23 February 2010; freeze request for first four races 20 February 2010; formal deferral request to 2011 with seven-figure bond 28 February; FIA inspection 24 February judged team not capable of competing; staff dismissed 2 March; removed from entry list 3 March; closed 1 April 2010; fined €309,000 plus costs and banned from FIA championships 24 June 2010; assets including two Brawn GP trailers sold on eBay by UK High Court; successor Cypher Group withdrew its 2011 bid)
- GP Fans — Danica Patrick and the new American team granted entry to join F1 (announced on American TV February 2009; accepted for the 13-team 2010 grid in June 2009; Chad Hurley withdrew his investment by mid-February 2010 leaving financial chaos; José María López confirmed late January 2010 with $8 million sponsorship; missed the first two pre-season tests; request to miss the first four races rejected; Bernie Ecclestone doubted the team from December 2009; shut down within a week of Charlie Whiting's FIA inspection; fined $309,000 plus costs and banned 24 June 2010)
spotted an error? The club wants to know.
More like this
VShojo spent its biggest star's charity fund — and every talent walked in three days
AT&T paid $85B for Time Warner — exited four years later, wrote down $24.8B
VICE was worth $5.7B — it sold in bankruptcy for $225M
Somewhere, someone solved the problem this company failed at. 2nd Opinion →
Comments · 0
Sign in to join the comments.