The Alpine Strike, Newey's Choice, and Charity Challenges!

Hi there! Welcome to Track Limits, a weekly F1 newsletter where we break down the biggest headlines and explore the questions, topics, and trends that fuel our curiosity. Nothing is off-topic and a little fun is always part of the mix!!

Good afternoon!! Here we are kicking off another double-header, fully recovered from Monza - I hope!

The home of the Tifossi is always a busy weekend, and this year was no exception. Not only did Ferrari secure a win, but the RB20 has finally caught up with Verstappen, and he's not exactly thrilled about it!! Argentine F2 driver Franco Colapinto replaced Sargeant - a move the team had been hinting at for months. What really caught many off guard were Vowles’ blunt remarks about the several drivers who were also in contention for the seat. Maybe not the words most of us would have chosen, but did it really deserve the pushback it got?

Mercedes finally confirmed Antonelli as their 2025 driver, but not before the Italian sent Russell's car into the wall during his first official FP1 outing - yikes! Well, at least that’s out of the way!!

The weekend wrapped up on a sour note for Ferrari’s customer team, Haas, as Magnussen received a race ban. Sure, the Dane has been pushing the limits lately, but the incident with Gasly hardly seemed worthy of a reprimand, let alone penalty points. Oh, and let's not forget the hot mess that "papaya rules" turned into, especially off-track!

When we returned from the summer break, I thought the rest of the season would be a snooze-fest when it came to off-track antics. But these past few weeks have definitely proven me wrong, just with the sheer amount of it!!

The Monza weekend kicked off looking more like a puppy show than a race! Leo Leclerc and Simba Gasly strutted around the paddock like they owned it, and honestly, I’m not mad about it! Over the years, the paddock has started to feel a bit dull and too full of itself. So, who better to bring some playfulness back into the weekend than a couple of very photogenic dogs?

The final Grill the Grid episode dropped, bringing with it a galore of meme-worthy facial expressions and leaving every female fan feeling vindicated for not knowing some obscure Formula One fact. Unsurprisingly, Piastri won this year's contest, and the genuine joy he showed while receiving the trophy was the most animated I've ever seen him!!

Speaking of Piastri, he answered a couple of questions for Cosmopolitan Uk, giving us a rare glimpse into the Ausie’s personality. Not only did he call the Norris/Ricciardo pairing “Dumb and Dumber” - which, to be fair, is probably an accurate description of their dynamic!! - but even more intriguing was his revelation that his favorite music genre is drum and bass. It's such a contrast to his calm public persona that it somehow makes perfect sense. Now, I just need a music-focused follow-up interview and a playlist!!

Monza wouldn’t be Monza without the incredible Tifosi and their costumes - did you see the Ferrari popes and Leclerc Jesuses?! This year, though, one fan took it to a whole new level, transforming into a full Bottas doppelgänger, complete with the mustache and mullet. Naturally, the Stake team invited him into the paddock, and we got a “Valtteri, it’s Valtteri” video. But I sincerely hope they milked the situation -can you imagine the potential?!

Quick side note - how did Ferrari mess up the race suits so badly?! When I first saw the black shirts, I had this delusional hope that we’d get an incredible black livery with stunning black race suits. But once again, Ferrari reminded us that when they do get the merch and suits right, it's purely by chance. Still, I have to give them credit for the artistic direction - the photos in the carbon fiber oven. To die for!

After the race weekend, everyone stayed busy. Leclerc took part in a 42-hour charity karting race - which he won. Bottas went cycling, but this time on water! He placed third in a charity race on a water bike from Corsica to Monaco. I know it sounds weird, but I kind of love the idea! Gasly had a self-care evening, which was so unusual for him that he felt the need to share it. He also dropped a trailer for a docuseries about the second-division football club he owns in France - looks interesting!

Meanwhile, Hamilton - the paddock’s cultural jet-setter - attended the U.S. Open final in New York, where, of course, he was seated next to Anna Wintour and Noah Lyles! A few days before, he made a surprise appearance at the Alaïa show, but neither he nor Russell were seen at Tommy Hilfiger’s show during New York Fashion Week - surprising, given that the brand is a partner of the Mercedes team. Interestingly, Russell’s girlfriend, Carmen Mundt, Mick Schumacher’s partner Laila Hasanovic as well as former F1 TrackTV presenter Lissie Mackintosh, were in attendance and dressed by the brand.

Finally, Stake and Williams held their annual family day, where team members' families were invited to the factory for a fun-filled day. Several activities were organized, they were given tours, treated to meals, and even got to enjoy some show runs. In true Stake fashion - content geniuses that they are proven to be - they made a video asking family members if they could explain what their relatives do at the team. Honestly, I was surprised by how detailed and accurate their answers were - not a single "transponster" moment!!

The Alpine Strike

Before the summer break, reports emerged that Renault, the parent company of Alpine, was conducting an internal audit of its F1 operations. One possible outcome of this review could be the termination of the power unit program at Viry-Châtillon, which has been developing power units for the French team and its customers since the late 1970s.

As a result, the over 300 employees at the Viry-Châtillon hub have called on Renault CEO Luca De Meo not to abandon the engine project. They’ve also sought support from local officials and even went on strike, with around 100 employees present at Monza, displaying banners and wearing t-shirts with the hashtag #ViryOnTrack.

WHY IT MATTERS:

Although the Renault Group is adamant that it’s not selling its Formula One team, recent developments suggest otherwise. This latest decision to review the power unit program and potentially get rid of it is about as close to an official announcement that the team is up for sale as one can get - if Renault follows through with it.

While several manufacturers have previously joined the sport in name only - be it as title sponsors or engine suppliers - an unprecedented number of manufacturers have committed to operating fully integrated works teams - developing both the chassis and the power unit - from 2026 onward.

The unparalleled opportunities of operating a works team - such as gaining global exposure, accessing cutting-edge R&D, transferring technology to road cars, attracting top-tier business partners and talent, positioning brands as prestigious, and being part of an exclusive group shaping global automotive trends - make it an appealing proposition, especially under the cost cap.

So why would a manufacturer choose to downgrade from being a works team or sell the team when doing so risks losing or diminishing the benefits that originally made F1 a worthwhile endeavour? While the global marketing platform of the sport would still offer opportunities to attract partners and engage with customers, how effective would it be if a Renault team were racing with a Mercedes engine?

The answer to these questions likely has to do with the financial implications of running a F1 team. Despite the cost cap limiting the annual spending on car development, race operations and testing, a steady flow of funding is still necessary to maintain and upgrade operations, and optimize performance. This requires not only full commitment from leadership but also strong financial health from the parent company to sustain it.

Unfortunately, the Renault Group has faced significant financial challenges in recent years. In 2019, the company reported a loss, marking the start of four consecutive years of declining sales. To weather the pandemic, Renault had to secure a €5 billion state-guaranteed loan and while the global sales volume grew by 9% in 2023 and the French manufacturer reported a profit for the first time last year, the company is still struggling. Particularly in the EV market, due to stiff competition from the U.S. and China, as well as the reduced government support.

In this context, divesting from Formula One - whether by restructuring operations or selling the team entirely - could be a logical business decision to help the manufacturer’s turnaround efforts.

However, the decision is more complex than that due to the significant influence of the French state, Renault’s largest shareholder. Despite the strong market for F1 teams - even underperforming ones like Alpine - the French state may not agree with this course of action due to its far-reaching consequences.

As a major employer in France, Renault’s decision to sell or become a customer team could lead to a significant loss of jobs and key technological expertise and capabilities. This would have considerable implications on the local economic development but also impact France’s broader industrial and technological landscape. As such, it might generate enough pressure from within Viry-Châtillon, the general public, and other stakeholders to prompt the government to intervene.

This would explain why workers at Viry-Châtillon have been actively working to influence public opinion, keep the story in the news, and engage local officials and fellow Renault Group workers.

While the future of the Alpine team remains uncertain, it is becoming increasingly evident that the decision regarding Renault’s Formula One project is not merely a corporate strategy issue but also a reflection of broader economic and political dynamics in France. The outcome of this ongoing saga will undoubtedly affect the company’s competitive standing in F1, and could potentially signal a shift in France’s automotive industry and its role in global motorsport.

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Newey’s Choice

One of Formula One's worst-kept secrets this season was that Adrian Newey and Aston Martin were in talks about joining forces. While Ferrari appeared to be in the running, the Italian team ultimately failed to convince the most accomplished engineer in F1 to make the move to Maranello. Which speaks volumes about the strategic vision and leadership Lawrence Stroll has demonstrated since taking over the British squad in 2020.

The announcement was live-streamed this Tuesday - marking the first time such pomp and circumstance was given to a non-driver related signing! It featured an hour-long conversation between Lawrence Stroll and Newey where they discussed the team's preparations for 2026, including the new cutting-edge wind tunnel, state-of-the-art factory, and the Honda power unit. However, the most interesting revelation was that Newey would also become a shareholder in the team.

ZOOMING OUT:

When it comes to compensation, athletes traditionally expect a salary and endorsement deals over the course of their careers. This, however, is starting to change, with the likes of Messi signing a groundbreaking deal with Inter Miami FC in 2023 that included an equity option.

Although it made headlines as a rare occurrence, it’s actually a common practice in the business world. For years, many publicly held companies have offered key employees equity as part of their compensation packages. Research has actually shown a positive correlation between granting equity to employees and improved corporate performance, including higher shareholder returns.

The same logic could easily be applied to sports. Offering equity could help smaller teams attract big-name athletes, diversify ownership, and incentivize athletes to take a long-term approach when joining a team. Despite these potential benefits, team owners have been reluctant to share revenue with players, let alone grant them equity - a practice that is even outright banned in some leagues.

But the current compensation model is fundamentally flawed, largely because it overlooks the value athletes generate beyond direct revenue. Athletes are the key drivers of sports viewership, media deals, merchandise sales, and sponsorship contracts. Yet, revenue isn’t necessarily where the biggest gains are being seen. The real windfall is in enterprise valuations - just look at how F1 teams have increased their valuations by a triple digit average since 2019, with several now being valued at over a billion dollars. Despite contributing significantly to this growth, athletes have no access to these equity gains.

While Newey isn’t an athlete, his impact on the team could be equivalent to that of a top driver—if not greater— because an F1 team’s success is heavily reliant on engineering and car performance.

This means Newey's signing is expected to generate more prize money and sponsorship deals through enhanced on-track performance. However, Stroll’s ownership extends beyond the Formula One team to the Aston Martin car company, meaning the F1 team serves as a crucial marketing platform.

As such, any improvement in competitive standings is likely to enhance Aston Martin’s brand recognition and revenue streams, as we saw with the increased sales of the Vantage F1 edition following the introduction of the safety car. Additionally, it could open doors to new strategic partnerships, attract investors, and drive valuable innovations that trickle down to other business areas. For instance, a hypercar designed by Newey, wouldn’t just generate revenue but also serve as a key component of Aston Martin’s World Endurance Championship race program. This suggests Newey’s presence at Aston Martin has the potential to significantly boost both the team’s and the company’s overall valuation.

Making the Brit’s reported compensation package look increasingly like a savvy business move by Aston Martin, as it strategically secured a unique talent that the team might not have otherwise attracted.

Whether we will see similar deals, where key players are given a true stake in the sport, remains to be seen. One thing is certain: athletes, and potentially even technical talents in F1, are increasingly interested in non-traditional compensation packages.

This shift means teams and owners must be strategic and proactive in how they approach the issue to avoid straining relationships with key stakeholders, missing opportunities, damaging their public image, and potentially facing the rise of new ownership models in alternative leagues. Such developments could seriously dilute their brands or lure away high-profile talent.

Interestingly, the industry-wide resistance to offering equity to athletes may be driving many to seek and establish private equity firms to invest in sports teams - often outside their own sport due to legal restrictions. Allowing them to bypass traditional ownership routes, gain substantial financial equity and participate in sports decision-making processes.

This week’s recommended content!

🗞 READ

Adrian Newey joins Aston Martin F1 team on long-term deal | Can the Las Vegas GP be ‘something for everybody’ in 2024? | The life goals and lessons of Charles Leclerc | Women are helping fuel F1’s rise. So why aren’t there any female drivers? | Five Blunt Admissions About Audi's F1 Problem Areas | Can Formula 1 Be Entertaining And Sustainable?

🎧 LISTEN

High Performance: Adrian Newey - Why I Quit Red Bull & My Future at Aston Martin | Track Limits: Alexa Rendell - Motorsport Presenter, Formula E Being 'Overlooked' | Paddock Project: Can Motorsport Technology Help the Environment? | F1 Explains: How F1 Lap times are recorded

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Photo Credit: Aston Martin Aramco Formula One Team, BTW Alpine F1 Team