GP2 insider prediction: When & which GP2 teams will run out of money in ’09

Based on the earlier calculations of team incomes according to the drivers they had been able to sign, I have made a chart to illustrate at what point of the 2009 season will GP2 teams run out of cash.  To better explain I have made a couple of assumptions:

1- that the necessary budget for break-even is €1.8 million – spent linearly at €180k per race by every team

2- the 3 empty seats (as of April 24 – 2 at Trident and 1 at DPR) are filled by paid drivers with budgets of €500k

gp2-team-cashHaving said this, and according to this estimate, the first team to fall will do so at the Budapest Hungarian GP at the end of July, with up to 7 teams in default by the season ender at Portimao in late September.    The team names behind the figures seen at the chart on the right:

  • Budapest:  Trident
  • Valencia:  Trident + DPR
  • Spa: Trident + DPR + Durango
  • Monza: Trident + DPR + Durango + Ocean + FMSI + DAMS
  • Portimao: Trident + DPR + Durango + Ocean + FMSI + DAMS + Super Nova

This is a prediction NOT taking into account the losses dragged along from GP2 Asia.  As mentioned in previous posts, this calculation is very hard to make due to the “subsidizing” effect of GP2 and GP2 Asia.  If we could take this into account, the number of teams in the red could pop up much earlier in the season.

The teams in worst shape:  Trident, DPR and Durango by far.   In a couple of days we will be able to see what Trident, with no drivers signed yet, will show up with at Montmelo.  Their only hope to survive:  sign Angolan-backed Teixeira to cover at least the operating expenses of the first couple of races.

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7 Responses to GP2 insider prediction: When & which GP2 teams will run out of money in ’09

  1. Stephen Rees says:

    It’ll be interesting to see the state of the grid (or more accurately, the state of the awful pay drivers that will be brought in) once we get to Portimao…

    Brilliant blog by the way! 🙂

    • gp2 insider says:

      Stephen,
      I also wonder how many teams will be at the Portimao race. If 3 seats are still up for grabs today, four days away from the Spanish GP, imagine at the end of the season, when many will be out of cash.

      Thanks for your compliments. Hope to keep posting interesting insights for you and the other readers.

      • Stephen Rees says:

        I look forward to seeing your future blog’s, it’s all very interesting stuff.

        A bit of random question, but have you heard anything about GP2 being streamed live on the official GP2 website this year? That’s the rumour going around a couple of web forums at the moment, but I’m not getting my hopes up…

        With coverage in the UK moving to the ridiculously over priced Setanta, and with them not even showing some races live, it looks as though this year will be my first since GP2’s inception that I won’t be able to watch it on TV. 😦

        • gp2 insider says:

          Stephen,

          Have not heard this. Truth is the GP2 Series website is pretty poor in terms of information. Even an F1-style live timing would be a welcome addition, but I don’t know if it will be up and running by this weekend. Good luck finding coverage.

  2. Pingback: Engine blow-ups and budgets «

  3. Tap says:

    just came across this post, the above is utter nonsense. Do you even have actual data from teams on what they run budget wise and where they even get their money from. You are not taking into account personal wealth of owners and sponsorships they get directly or the fact that many teams have sidline businesses which generate income.

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