Blogg - Formula 1 Shareholders

Formula 1 Shareholders

Changes to the team ownership are coming to F1 from next season. The reason for this is simple. The situation and the game dynamics are changing and the current system is not working as designed many years ago.

Maybe the biggest disadvantage of the current system is that it penalizes teams that are more successful while those at the bottom gain the most benefits. 

Formula 1 is the key source of the My Racing Career income and pays most of the game expenses. This income is much needed. But the current situation allows teams to purchase newly issued shares very cheaply through the auction.

While I am a big hater of the “Pay to Win” games, the idea to generate income through F1 comes with some similarities. But I would rather call it “Pay to Close Gap”. And yet the game is about the career of drivers so obviously if the driver is the best, he might be hired by the top team and the chance to win without paying is secured.

Changes in F1 Team Ownership

The current system allows even the smallest shareholders to cause troubles within the team. Everybody remembers attempts to forcibly overtake team Ferrari or Williams using an extremely high amount of coins to do so.

The change

1. All F1 team owners will be divided into two groups - MAJOR and MINOR shareholders.
2. Major shareholders own at least 8% of the team and must all agree on how the newly issued shares will be split if purchased directly.
3. Minor shareholders own less than 8% of the team and do not have to agree on how shares will be split. They need to build good relationships with other team owners to be allowed to take a bigger role within the team.

Changes in the Share Issue System

The current system penalizes the second-best team when it is forced to issue 10% of shares of the more valuable team to receive much less money than a team that is doing worse.

The change

1. There will be 2 share issue moments during the season.
a) First share issue will be similar to the current system and teams will be able to receive a maximum of 3M each season.
b) Second share issue will be also similar to the current system but the teams will be able to receive a maximum of 65% of the difference between their earnings and the earnings of the best team.
2. In both cases percentage of issued shares will be calculated as 
<money_received>/(8*<season_income>)*
3. Unassigned shares can be purchased directly by the team owners for 10 coins per 1M received by the team for these shares.
4. If a team does not want to purchase all directly they can place shares in the auction with a minimum bid value equal to 8 coins per 1M received but the team for these shares.
5. If nobody purchases shares via auction they stay unassigned and the team can again purchase directly or place them in the auction again.
6. If there are unassigned shares in the team, no other share issues can be requested.

*Last season's income is used for the first share issue

Examples

Example 1: That means if the team has an income of 25M and gets 32.5M (top team income was 75M), they will have to pay 325 coins to purchase directly and issue 32.5/8*25 = 32.5/200 = 16.25% shares. The minimum bid in the auction would be 260 coins.

Example 2: Another team with an income of 50M  which gets 16.25M will have to pay 163 coins to purchase directly and issue 4.06% shares. The minimum bid in the auction would be 130 coins.

Example 3: Another team with an income of 65M which gets 6.5M will have to pay 65 coins to purchase directly and issue 1% of shares only.  The minimum bid in the auction would be 52  coins.

Example 4: Team issues shares to get 3M and their last season income is 60M. The estimation of the team value is 8*60M=480M, so the team needs to issue 100*3/480=0.625% of the shares. They can purchase directly for 30 coins or place to the auction with a minimum bid of 24 coins.