Big Business

Big business[edit]
Beginning in the 1970s, Bernie Ecclestone rearranged the management of Formula One's
commercial rights; he is widely credited with transforming the sport into the multibillion-dollar
business it now is.[21][22] When Ecclestone bought the Brabham team during 1971, he gained a seat on
the Formula One Constructors' Association and during 1978, he became its president.[23] Previously,
the circuit owners controlled the income of the teams and negotiated with each individually; however,
Ecclestone persuaded the teams to "hunt as a pack" through FOCA.[22] He offered Formula One to
circuit owners as a package, which they could take or leave. In return for the package, almost all that
was required was to surrender trackside advertising.[21]
The formation of the Fédération Internationale du Sport Automobile (FISA) during 1979 set off
the FISA–FOCA war, during which FISA and its president Jean-Marie Balestre argued repeatedly
with FOCA over television revenues and technical regulations.[24] The Guardian said that Ecclestone
and Max Mosley "used [FOCA] to wage a guerrilla war with a very long-term aim in view". FOCA
threatened to establish a rival series, boycotted a Grand Prix and FISA withdrew its sanction from
races.[21] The result was the 1981 Concorde Agreement, which guaranteed technical stability, as
teams were to be given reasonable notice of new regulations.[25] Although FISA asserted its right to
the TV revenues, it handed the administration of those rights to FOCA. [26]
FISA imposed a ban on ground-effect aerodynamics during 1983.[27] By then,
however, turbocharged engines, which Renault had pioneered in 1977, were producing over 520 kW
(700 bhp) and were essential to be competitive. By 1986, a BMW turbocharged engine achieved a
flash reading of 5.5 bar (80 psi) pressure, estimated[who?] to be over 970 kW (1,300 bhp) in qualifying
for the Italian Grand Prix. The next year, power in race trim reached around 820 kW (1,100 bhp),
with boost pressure limited to only 4.0 bar.[28] These cars were the most powerful open-wheel circuit
racing cars ever. To reduce engine power output and thus speeds, the FIA limited fuel tank capacity
in 1984, and boost pressures in 1988, before banning turbocharged engines completely in 1989.[29]
The development of electronic driver aids began during the 1980s. Lotus began to develop a system
of active suspension, which first appeared during 1983 on the Lotus 92.[30] By 1987, this system had
been perfected and was driven to victory by Ayrton Senna in the Monaco Grand Prix that year. In the
early 1990s, other teams followed suit and semi-automatic gearboxes and traction control were a
natural progression. The FIA, due to complaints that technology was determining the outcome of
races more than driver skill, banned many such aids for the 1994 season. This resulted in cars that
were previously dependent on electronic aids becoming very "twitchy" and difficult to drive.
Observers felt the ban on driver aids was in name only, as they "proved difficult to police effectively".
[31]
The teams signed a second Concorde Agreement during 1992 and a third in 1997. [32]
Stefan Johansson driving for Ferrari at the 1985 European

Grand Prix
On the track, the McLaren and Williams teams dominated the 1980s and 1990s. Brabham were also
being competitive during the early part of the 1980s, winning two Drivers' Championships
with Nelson Piquet. Powered by Porsche, Honda, and Mercedes-Benz, McLaren won sixteen
championships (seven constructors' and nine drivers') in that period, while Williams used engines
from Ford, Honda, and Renault to also win sixteen titles (nine constructors' and seven drivers'). The
rivalry between racers Ayrton Senna and Alain Prost became F1's central focus during 1988 and
continued until Prost retired at the end of 1993. Senna died at the 1994 San Marino Grand Prix after
crashing into a wall on the exit of the notorious curve Tamburello. The FIA worked to improve the
sport's safety standards since that weekend, during which Roland Ratzenberger also died in an
accident during Saturday qualifying. No driver died of injuries sustained on the track at the wheel of
a Formula One car for 20 years until the 2014 Japanese Grand Prix, where Jules Bianchi collided
with a recovery vehicle after aquaplaning off the circuit, dying nine months later from his injuries.
Since 1994, three track marshals have died, one at the 2000 Italian Grand Prix,[33] the second at
the 2001 Australian Grand Prix[33] and the third at the 2013 Canadian Grand Prix.
Since the deaths of Senna and Ratzenberger, the FIA has used safety as a reason to impose rule
changes that otherwise, under the Concorde Agreement, would have had to be agreed upon by all
the teams – most notably the changes introduced for 1998. This so-called 'narrow track' era resulted
in cars with smaller rear tyres, a narrower track overall, and the introduction of grooved tyres to
reduce mechanical grip. The objective was to reduce cornering speeds and to produce racing similar
to rainy conditions by enforcing a smaller contact patch between tyre and track. This, according to
the FIA, was to reduce cornering speeds in the interest of safety. [34]
Damon Hill driving for Williams at the 1995 Canadian Grand

Prix
Results were mixed, as the lack of mechanical grip resulted in the more ingenious designers clawing
back the deficit with aerodynamic grip. This resulted in pushing more force onto the tyres through
wings and aerodynamic devices, which in turn resulted in less overtaking as these devices tended to
make the wake behind the car turbulent or 'dirty'. This prevented other cars from following closely
due to their dependence on 'clean' air to make the car stick to the track. The grooved tyres also had
the unfortunate side effect of initially being of a harder compound to be able to hold the grooved
tread blocks, which resulted in spectacular accidents in times of aerodynamic grip failure, as the
harder compound could not grip the track as well.
Drivers from McLaren, Williams, Renault (formerly Benetton), and Ferrari, dubbed the "Big Four",
won every World Championship from 1984 to 2008. The teams won every Constructors'
Championship from 1979 to 2008, as well as placing themselves as the top four teams in the
Constructors' Championship in every season between 1989 and 1997, and winning every race but
one (the 1996 Monaco Grand Prix) between 1988 and 1997. Due to the technological advances of
the 1990s, the cost of competing in Formula One increased dramatically, thus increasing financial
burdens. This, combined with the dominance of four teams (largely funded by big car manufacturers
such as Mercedes-Benz), caused the poorer independent teams to struggle not only to remain
competitive but to stay in business. This effectively forced several teams to withdraw.

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Big business[edit]

Stefan Johansson driving for Ferrari at the 1985 European

Damon Hill driving for Williams at the 1995 Canadian Grand

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