Investment Banks as Formula One Teams

Bored at work and just finished binging F1: drive to survive on Netflix.....

Soooo here goes:

Goldman Sachs/Scuderia Ferrari:The undisputed GOAT franchise. May not always be #1 in the league table/standings but has been consistently top-ranking for decades, not to mention the unparalleled prestige of making partner at GS/driving for Ferrari. Despised by other teams for their proximity to the governing body (Government Sachs/Ferrari International Assistance) and questionable favoritism.

J.P. Morgan/Mercedes:Old legacy brand which went dormant for decades (Morgan's commercial banking days/Mercedes' non-involvement in f1 until 2000s) that resurged in recent years (post-crisis/hybrid engine era) and proceeded to dominate the league tables/grid (JPM crushing league tables vs Mercedes winning 6 championships in a row) using their large balance sheets/R&D from Brawn GP.

Morgan Stanley/Red Bull: Equally powerful and rich as GS and JPM/Ferrari and Mercedes and once saw major success (dominant M&A franchise/4 world championships in a row)

BAML/Renault: Historically great franchise (Merrill Lynch/Benetton) that was bought out by a large universal bank/carmaker (BofA/Renault). Has seen successes via large balance sheets/virtually unlimited R&D budget but still has work to do in order to challenge the big boys.

Citi/McLaren: Wildly successful in the 80s (Salomon Bros/McLaren-Honda) but went quiet in the 90s before resurging in the 2000s as a completely new brand (Citigroup/McLaren-Mercedes) and saw some success before crashing down (financial crisis/failed partnership w/ Honda). Currently on the path upwards again with new leadership/power units.

DB/Williams: A once-dominant franchise now spiraling downwards with no end in sight due to gross mismanagement from the top (John Cryan/Claire Williams).

Barclays/Sauber: Former powerhouse (Lehman/BMW-Sauber) that exited the biz and got acquired, but has yielded mixed results since and are sort of stuck in the midfield.

Nomura/Toyota: Japanese big-hitters who've spent big in an effort to break in and disrupt the playing field, but yielded mediocre results (low market share/failing to establish as a top 3 constructor) and as a result has (largely) exited the biz (Nomura scaling down US and London operations/Toyota exiting F1 completely).

that's all I can think of so far....any thoughts?

all credits go to the GoT post! great inspiration

EDIT: oh my god guys did not expect all the love - thanks everyone

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Comments (67)

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Mar 11, 2020 - 3:06am

I'd put Wells as Marussia/HRT - newcoming backmarkers who cant seem to find much success

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

Most Helpful
Mar 10, 2020 - 3:57pm

finally someone in Finance who loves F1 too

Aditya.B
  • 23
Mar 10, 2020 - 5:02pm

Very creative. I enjoyed reading this. You should definitely be a writer or consider working in a banking group that covers automobiles.

Array
  • 2
Funniest
Mar 10, 2020 - 11:14pm

Trying to think of something for Racing Point. Getting railed by Vijay during their Force India days and getting bought out of admin by Stroll and now the AM Works team for '21.

Had decent talent with Ocon, good talent with Perez then Lance got the seat thanks to the bailout. Anyone got any idea?

  • 6
Mar 11, 2020 - 11:10pm

Bear Stearns?

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

Mar 12, 2020 - 8:08pm

I'll repost my reply here:

RBC/(T)Racing Point: Trying to copy the (business) model of J.P. Morgan/Mercedes but on a much smaller budget. Questionable results thus far. Canadian backing too.

"The power of accurate observation is commonly called cynicism by those who have not got it." - George Bernard Shaw
  • 3
Mar 11, 2020 - 3:09am

Could be Gary Cohn since they both fit in the Chosen One/Golden Child category but he left so idk.

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

  • 1
Mar 11, 2020 - 2:05pm

Leclerc is that hardo 2nd yr analyst who says "I'm working - need to analyze the data" whenever people ask him what he's up to at any given time. Given an early 2nd year bump to associate though so I am happy for him

Love the guy though - real driving talent.

  • 3
Mar 11, 2020 - 11:16pm

So is Vettel the guy who made MD before 30 but struggled to win deals ever since?

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

  • 5
Mar 11, 2020 - 11:11pm

seriously tho, let's make it happen

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

Mar 11, 2020 - 3:27pm

all middle market operations are F2 teams and the regional banks are NASCAR

Aditya.B
Mar 11, 2020 - 11:07pm

ahahhahaa not gonna lie I struggled with MS/Red Bull

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

Mar 12, 2020 - 2:27am

lol yeah I'm aware of the rebranding but the team is best known as Sauber and longtime fans usually call it as such

also I dont think CS and UBS are necessarily Toro Rosso and Haas. There's a reason I left them out - literally could not draw parallels between the 2 banks and f1 teams (past & present)

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

Mar 12, 2020 - 5:34pm

RBC/(T)Racing Point: Trying to copy the (business) model of J.P. Morgan/Mercedes but on a much smaller budget. Questionable results thus far. Canadian backing too.

Unicredit/Alpha Tauri: The weird, plucky Italian version of Morgan Stanley/Red Bull. Just happy to be on a tombstone/at a GP.

Centerview (or any other EB)/Haas: Started out of the gate strong after pulling a bunch of talent with GS/Ferrari pedigree. How well they succeed without a balance sheet/big budget is an open question.

On another note. Given Ferrari's ability to always screw up a championship due to bad cars/internal politics, they might even warrant the DB moniker. Especially seeing as they haven't won anything since 2008.

"The power of accurate observation is commonly called cynicism by those who have not got it." - George Bernard Shaw
  • 4
Mar 12, 2020 - 10:32pm

Pretty solid. Would say Greenhill is a solid parallel to Haas. Bit of a decline but always teetering on the "this might be their inflection point" kind of vibe.

Apr 15, 2020 - 1:12pm

Williams to join em soon...likely Latifi's dad buys the gig from Claire

which honestly is a good thing IMO. that woman's been running the franchise to the ground.....

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

Apr 16, 2020 - 12:15am

Stroll Sr should just buy the entire F1 franchise from Ross Brawn so his son can hop around teams as he pleases...LOL

"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

Apr 9, 2020 - 5:44pm

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May 13, 2020 - 11:30am

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"They say money can't buy happiness? Look at the fuckin' smile on my face. Ear to ear, baby!" - Boiler Room

Jun 7, 2020 - 7:35am

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