F1 and the looming Brexit crisis 

The political turmoil in the United Kingdom has left Formula 1 teams plenty to be worried about apart from getting the fastest car on the grid this season. The Brexit deal negotiated by UK Prime Minister Theresa May was rejected by MPs earlier this week by 230 votes, the largest defeat suffered by a government in the House of Commons in history.

Consequently, Britain could leave the European Union (EU) on March 29, 2019, without a deal, which would mean the collapse of the single market as there will be no agreed customs or trade arrangement with European nations.

Prior to the Commons vote, representatives from three F1 teams spoke with the head of Britain's racing authority - Motorsport UK chairman David Richards and shared their concern of a no-deal Brexit. Richards believes that the impending exit threatens the viability of teams having major bases in the UK, which has traditionally been an F1 bulwark and a stronghold.

“Something we should be so proud of is the top F1 teams and world champions based here [UK] And we’re going to make their lives difficult. We’ve got to make sure that doesn’t happen.”

Brexit is a challenge with regards to finance, immigration, and legacy of the sport in Britain. Here's how:

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#3 Financial implications of Brexit

Mercedes races under German license but based in Brackley

Formula 1 is a billion-dollar sport which supports a million dollar ancillary industry. One of the key financial implications could well be a deficit in the amount of money that the sport generates for the British economy.

The Mercedes winning Formula 1 team and their engine manufacturing division is based in the Brackley and contributed over £111 million in 2017 to the economy through the production of the current V6 turbo engines.

Williams could earlier purchase their Mercedes engines at a preferential rate and opt-in buying in pounds or euros. Post the Brexit, it will have to be just the pound. If the sport reduces its presence because of untenable finances, the economy built around F1 will bleed more.

#2 Immigration and retention of talent

Renault will face logistical issues with Brexit

Formula 1 attracts a stream of talented personnel to each team, be it the drivers, engineers, aerodynamicists, designers or mechanics from all over Europe. The personnel move and swap jobs amongst the teams too. Brexit poses a serious question of how the talent from the European nations will be recruited and retained without any effect on the tight work schedules.

Before, a German Mercedes engineer could find it easier at the UK customs and a British crew from Enstone could walk past the French immigration as they moved to and fro between their Renault factory bases. The Formula 1 industry is largely concentrated in the UK and stricter immigration laws will cause delays in a sport where every second matter off the track and every millisecond on it.

The F1 industry will move from the 'wait and see approach' and chalk up contingency plans to ensure that Brexit has a minimal impact on their operations.

#1 Satellite operations and logistics in Europe

McLaren, a heritage British side have another headache in Brexit

It is necessary for the FIA and the teams based in Britain especially to understand the nature of the crisis and prepare a contingency. Although Formula 1 is an international sport, with races taking place in 5 continents, 7 out of the 10 teams racing in the 2018 season based within the UK.

The teams operating from the ‘Motorsport Valley’ are: Red Bull, Williams, Renault, Mercedes, Haas, Racing Point, and McLaren. Only Sauber operating from the confines of the Swiss Alps, Ferrari from Maranello, and Toro Rosso from Faenza are not having their factories and shop floors in England.

The sport and the industry may adapt and think of alternatives too. Richards said that one outcome of a no deal Brexit could be teams having 'satellite operations' in Europe. It would make sense too as the heart of the F1 championships is the European leg that hosts 9 races from May to September on iconic tracks. It is the UK that stands to lose the most, even perhaps Silverstone.