Asian Motor Sports

The news on A1GP’s fourth season is getting more dour with each passing day.

A few days ago (with a bit of help from Babel Fish) the series stop in Zandvoort, Holland was in jeopardy due to the ongoing problems of officials not producing enough machinery for a full field of 22 nations.

Now comes word out of New Zealand. The A1GP New Zealand round is scheduled for 23 January at the Taupo Motorsports Park.

It seems the current world credit crisis precipitated by the crash of mortgage companies in the United States may place the entire A1GP Series in dire straights also.

A hedge fund manager, London based RAB Capital plc, are majority owners of the series and as yet have not “commit[ed] for another season which will run new cars powered by Ferrari engines.”

A1GP New Zealand’s chief executive Gary Dawson has pulled on his “Happy Face.” at the news.

New Zealand hosts a round of the series in January and A1GP New Zealand chief executive Gary Dawson said yesterday he had yet to hear from series bosses whether he will have their financial support to run it.

Sales of tickets or hospitality could not start until then and he needed to hear from A1GP bosses in the next 10 days so marketing could begin.

Although he remains confident the event will go ahead, Dawson does not want to be in a situation where the event goes to market and then it gets canceled.

Respected motor racing commentator Bob McMurray agreed.

“A1GP is not in trouble - they are just having a reorganisation,” said McMurray, chief executive when the New Zealand A1 team was founded by Auckland businessman Colin Giltrap in 2005. “In terms of cash to get the thing under way [for a fourth season], it’s just a hold-up because of the international financial situation.

“I don’t think you can say they are in trouble, I simply think they are being forced, as Formula One is, as almost every other major corporation is, into reorganising how they go about things.”

Ah huh, ok.

Whistling through a dark graveyard is fairly typical of those hoping for the best, and fearing the worst. But with the current banking situation it’s hardly a comforting feeling and does nothing to solve the problems whatever they may be at RAB Capital.

On that note, this is from the last paragraph in the “related article” linked below:

Investors who put their money into the [RAB Capital] fund several years ago have realised huge gains. But Mr Richards has been criticised for certain recent high-profile holdings, such as Northern Rock and A1 Grand Prix, a rival to Formula One.

Would it be safe to say investors rule, up to and including dumping A1GP to save cash, and Mr Richards has to dance to the proper tune or he’s out on his ass?

Cross posted at Full Throttle.

Related articles:

• Crunch time looms for RAB Capital