With the announcement of the introduction of price caps for brakes and suspension in MotoGP from 2015, the Grand Prix Commission, MotoGP's rule-making body, appears to have finally found an effective way of controlling costs in the series. Instead of trying to control costs indirectly and seeing their efforts kicked into touch by the law of unintended consequences, the rule-makers have decided to attempt to go straight to the heart of the problem.
Will capping prices unleash a whole set of unintended consequences of its own? Will, as some fear, the move to cap prices lead to a drop in quality and therefore a reduction in R&D in the areas which are price-capped? And will the price cap act as a barrier to new entrants, or stimulate them? These are hard questions with no easy answers, yet there are reasons to believe that price caps are the most effective way of controlling costs, while the risks normally associated with a price cap, such as a reduction in quality, are lower in a racing paddock than they are in other environments.
Classical economic theory proposes that under normal conditions, high-value markets such as the one for brakes and suspension in MotoGP encourage both innovation and new entrants into the market. High prices offer relatively high margins of return, and should make it a highly competitive market. This, in turn, should also stimulate research and development, as companies look for technological advantages over their competitors which they can use to increase sales. The race track would appear to offer a perfect benchmark, pitting one brand of equipment against another, and the stopwatch and results sheet providing an objective comparison between products.
Unfortunately, however, racing paddocks are a long way from being perfect markets. There are many, many distortions which mean that any attempt to manage costs via traditional economic methods will fail. The usual law of supply and demand requires the existence of two parties making rational decisions on whether to do business together. If the prices of a seller are too high, then a buyer will go elsewhere, looking for a similar alternative available at a lower price.
Since the global financial crisis struck back in 2008, MotoGP's primary focus has been on cutting costs. These efforts have met with varying success - sometimes reducing costs over the long term, after a short term increase, sometimes having no discernible impact whatsoever - and as a result, the grids in all three classes are filling up again. Further changes are afoot - chiefly, the promise by Honda and Yamaha to supply cheaper machinery to private teams, either in the form of production racers, such as Honda's RC213V clone, or Yamaha's offer to lease engines to chassis builders - but there is a limit to how much can be achieved by cutting costs. What is really needed is for the series to raise its revenues, something which the series has signally failed to do.
In truth, the series has never really recovered from the loss of tobacco sponsorship, something for which it should have been prepared, given that it had had many years' warning of the ruling finally being applied. The underlying problem was that the raising of sponsorship had been outsourced and the marketing of the series had been outsourced to a large degree to the tobacco companies, and once they left - with the honorable, if confusing, exception of Philip Morris - those skills disappeared with them. There was nobody left to try to increase the amount of money coming into the sport.
The battle which has been raging rather politely between Honda and Dorna over the introduction of spec electronics continues to simmer on. The issue was once again discussed at Motegi, with still no resolution in sight. HRC boss Shuhei Nakamoto reiterated Honda's opposition to the introduction of a spec ECU in an interview with the Japanese journalist Yoko Togashi, which was published on GPOne.com.
The reasons for introducing a spec ECU - or more accurately, a spec electronics package, including ECU, sensors, wiring harness and data logger - are twofold: the first issue is to cut the costs of electronics in the sport, an area where spending is rampant and where gains can always be found by throwing more money and more engineers at a problem. The second issue is to improve the spectacle; racing in the modern era has become dull, with the electronics and the Bridgestone tires contributing to produce races where it is unusual for there to be more than one pass for the win.
While Nakamoto did not comment on improving the show via electronics - it could be argued that radically changing the tires would have a greater impact on the spectacle than merely introducing a restricted spec electronics system - he did repeat the claim he has made in the past that merely adopting a spec ECU would not help to cut costs, claiming that if anything, it would actually increase costs.
The analogy he used to describe the change was as follows: "Using different ECU is like switching to Macintosh while you are using Microsoft adapted computers for many years. You have to change everything." At first glance, that seems to be a reasonable argument: switching ECUs would indeed mean that all of the software Honda has developed for their own ECU would have to be transformed into a form which they could use on the new ECU, the unit to be supplied by Magneti Marelli. Nakamoto bases his claim on his experience in Formula One, where Honda spent a lot of money adapting their electronics package when that series implemented a spec ECU.
An Alternative To Spec Tires: Australian Superbikes Introduces Price Caps With Multiple Tire Manufacturers
The spec tire rule in MotoGP is one of its most hated elements. Introduced for the 2009 season after a mass defection from Michelin threatened to leave everyone except Bridgestone struggling to survive, the standard tire has had a massive impact on the series. The idea behind it was to reduce costs, and for the smaller privateer teams who could only buy their tires, it has helped to bring down expenses.
But the side effects have been fairly disastrous. Having a spec tire may have reduced the cost of tires, but it has raised the cost of development for the chassis, electronics and engines. Instead of building a bike and having a tire company iron out imperfections with different carcasses and compounds, the bikes have to be designed completely around the tires. The problems the engineers face have been especially obvious this year: the Ducati continues to struggle with a lack of front-end grip, while the Honda suffers terribly from chatter. Both problems could be sorted out in a couple of weeks with specialized tires made for them.
A crash at 142mph is fairly reasonable in anyone's book. At Mugello, Silverstone, Brno it would be noted and not given a second thought. A slide across the track, maybe, and into some welcoming gravel. On Mona's Isle, however, it is a different story.
Simon Andrews crashed at that speed on Saturday. He misjudged his velocity on the entry to Graham Memorial and ran out of two-lane blacktop. After hitting a bank and laying in the road for probably longer than was entirely necessary, he was taken to hospital with nothing more than a broken ankle, wrist, shoulder and blood in his eyes. He should be dead.
But this is the Isle of Man. A place where Giacomo Agostini raced Mike Hailwood raced Phil Read, once upon a time. It was a Grand Prix. Not so now as the dangers of the place proved too much and Barry Sheene, who did just one lap of the place on a 125, was instrumental in it being removed from the calendar.
Heroes are made here. But they are only heroes in certain places. John McGuinness has now won 19 TT races. Those who follow MotoGP in Spain will have no idea who the man is but McPint does six laps of the 37.73-mile circuit at average speed of 129mph. Read it again. Average speed. On normal roads. His lap record is 131.5mph and tomorrow it will fall, so long as the rain doesn't intervene.
It is ironic that the high point of the relationship between Valentino Rossi and Ducati came as he rode the first few meters out of pit lane and on to the track at the Valencia MotoGP test in November 2010. All of the excitement that had been building since the first rumors emerged in early June that the nine time world champion would be leaving Yamaha to join the iconic Italian manufacturer culminated as Rossi emerged from a crowd of photographers and powered down pit lane, watched by a large group of fans who had come to the test to see this very moment.
From that point on, it was all downhill. Within a few laps, it was clear that Rossi would struggle with this bike, and though everyone was putting a brave face on his performance, he left the test in 15th place, one-and-three-quarters of a second behind his ex-teammate Jorge Lorenzo, and 1.7 seconds behind Casey Stoner, the man whose bike he was now riding and who had left Ducati to join Honda. The contrast between the two could not be greater: where Stoner was bullying the Honda around as if he had been born on the RC212V, Rossi - handicapped in part by his still-injured shoulder - looked like a frightened rookie, thoroughly intimidated by the bike.
Rossi learned two important but disturbing things at that test: the first was that the Ducati was a much, much worse bike than he had expected. Stoner's brilliance and the genius of his crew chief Cristian Gabbarini had flattered the machine, disguising its massive weakness. The second was that Casey Stoner had to be a much, much better rider than he thought if the Australian had managed to be competitive on the bike that had so shaken Rossi's confidence. Throughout the year, as Rossi struggled, he was forced to answer the same question over and over again. Why could he, the man with nine world titles and widely regarded as one of the greatest racers of all time, not be competitive on the bike that Stoner had won three races on the previous season, and put on the podium at Valencia before handing it over to Rossi? "Casey rode this bike in a special way," Rossi answered every time. "I cannot ride this bike like that."
In a week's time, the first race of the 2012 MotoGP season will be wrapped up and finished, and with a full preseason of testing behind us, it's time to take a look at the upcoming year. A lot is expected of the new season, and there's a lot to talk about, with a return to 1000cc MotoGP bikes, a brand new Ducati GP12, the advent of the CRT bikes, and much, much more. Time to make some predictions for the 2012 season.
Predicted Final 2012 MotoGP Championship Standings:
With the news coming out today that Ant West will not be able to make the grid for the 2012 motor GP season, due to his inability to find funding for his ride, brings up an interesting take on where the sport of MotoGP, motorcycle racing, and motor sports in general fits in with life today in our current economic environment.
Young riders coming up today, and even current riders, need to understand that they are no longer being paid to race. This is a major change in mindset, what they are paid to do is work as a marketing tool for their sponsors and patrons. For most of the history of athletics and motorsports, one of two things had to happen for you to compete, you either were either wealthy, or, you had to have a wealthy patron. Patron, another term for sponsor, is something that disappeared, for the most part, post-World War II on a personal level. Post World War II sponsorship came from corporations rather than people though that really didn't become visible until the 1960s with the Lotus Formula One team.
Go to Wikipedia today (Wednesday, January 18th) to search for information, and you will be met with a dark page bearing a stark warning: "Imagine a World Without Free Knowledge". The reason for Wikipedia's blackout is simple: they, along with other major internet companies such as Google, WordPress, Reddit, Tucows, Boing Boing and sites such Twitpic all oppose the legislation currently going through the US Congress to prevent so-called content piracy. Two bills are currently under consideration, the Stop Online Piracy Act (SOPA) and the Protect Intellectual Property Act (PIPA), both of which are aimed at preventing the illegal theft of content owned by the US film, music and software industry.
That is a noble aim: the people who work hard to create the movies, TV series, music and computer games that we all love deserve to be paid for their work. They invest large amounts of money to produce content, and they do not deserve to have their product stolen and redistributed by gangs of organized criminals who make money off of the games, movies and music made by the content owners, without contributing anything to those content owners.
MotoMatters.com wishes all of our readers a Happy New Year and all the best for a happy, healthy and successful 2012. We're grateful for all of the support our readers have given us throughout 2011, which has allowed us to continue to grow our audience and expand our coverage. We are especially grateful to the readers who have supported us financially, either by becoming subscribers or buying a calendar or t-shirt, and to the advertisers who have supported us throughout the year.
With major changes coming in both MotoGP and World Superbikes, we believe 2012 will be one of the most interesting and exciting years in recent motorcycle racing history, and we will be making a few changes to the site and hopefully adding resources to cover the world of international motorcycle racing in even more depth than we did in 2011. Here's to the New Year!