Honda Formula One Team was recently forced to close its F1 division due to a financial crunch

Formula One and the world is facing the toughest ever phase in its glorious history. This recession has had many a victim including top auto firms who have resorted to asking their respective governments for bailout packages. Honda was forced to shut down its formula one division, a decision which they painfully had to take on an earlier occasion too when the going had gotten tough.

Bernie Ecclestone has made it clear that formula one teams who are expecting to be paid more should lower their expectations and would infact be paid comparatively lesser.

Taking a potshot at the corporate culture in the formula one team, Bernie Ecclestone said that earlier on negotiations used to be easy and crisp and you only had to talk to the man with the money and hence the control. But these days teams come with lawyers and ‘masseurs’ and cant seem to agree on anything.

This year F1 teams are also vying for the share of the pie that Honda F1 has left in F1. Most F1 teams are going through a rough patch primarily due to the shortage of sponsors. As big corporate houses face a credit and liquidity crunch, their expenditure on advertising also decreases. And the first to go is usually the outrageous expenses on formula one teams.