Formula 1 teams economic situation
This simulation is focused on finding sustainable model of Formula 1 budget distribution among competing teams.
- Project name: Formula 1 teams economic situation
- Author: Jan Zaškolný
- Software used:
NetLogoExcel (see comments at the page bottom)
Formula 1 background
At the moment there is serious trouble in the business as two out of eleven teams filed for bankruptcy recently during a single month. This might indicate bigger issues coming in future because the minimal number of teams to run the championship is eight (so that there are 16 cars), thus repeating the recent things could be the end of the most famous racing series. According to representatives of smaller teams they are also on the verge of going bankrupt due to the model of budget distribution in the championship. Contribution of organizer of Championship to the budget of teams depends on results of teams but this is something that ignores system archetype called "success to successful" which is even stronger in this case because sponsors provide finance mostly to previously successful teams. What makes the situation even worse is the fact that costs to enter to championship are so high that entering of a new participants happens very rarely.
Goal of the simulation
The goal of this simulation is to provide environment to simulate models of budget distribution in Formula 1. Out of total revenues around a half goes to the teams, a third to the owners of the Formula 1 brand and the rest is used for various expenses at the moment. Out of the half money teams get most goes to the teams that were on top position in the previous championship season. This simulation should answer whether this is sustainable or whether there are changes needed.
What will be simulated
Most important unit is a team as the goal is to simulate situation of teams. However drivers are also relevant because they can bring sponsor money or earn a high wage that is a significant cost for the team. Also there is an entity representing the environment itself which will be used to simulate number of spectators and total money pool in the championship (influenced by it's attractivity for spectators which is influenced by number of racing cars and their technological level). Links will be used to show relations between teams and drivers.
The topic is interesting, but the simulation platform (Netlogo) is totally inappropriate. What about Excel?
The reason why I opted for NetLogo was that I thought it was somewhat similar to the market efficiency example we did during the class. However you are much more experienced in this field so if you think Excel would be better for this I will find a way ho to do it in Excel. Xzasj00 00:49, 14 December 2014 (CET)
Oleg.Svatos 21:25, 14 December 2014 (CET) Excel or Vensim should be fine for this. Take your pick. Approved.