How Driver Negotiations Work: Mercedes GP

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By Stuart Codling

Guest writer Stuart Codling digs deeper into the untold stories behind the Mercedes announcement - or should that be the over-told stories?

You say tom-ah-to, I say tom-ay-to. In amongst the epic quantity of gun-jumping that took place in advance of today’s Mercedes-Benz announcement, two news sources led with differing predictions of who would drive for whom in 2010. Auto Motor und Sport placed Nico Rosberg and Jenson Button at the newly rechristened Mercedes GP; the venerable BBC went for Rosberg and Nick Heidfeld.

Intriguing as the possibility of a Michael Schmidt vs Andrew Benson deathmatch would be (on stilts! With pugil sticks!), it’s a tricky one to call. Schmidt is one of the most hard-nosed newshounds in Formula 1 and his consumption of bananas is second only to Ross Brawn; and although Benson has been pilloried for posting links to utter tat on the BBC’s website, don’t forget that it was he who broke the news that Damon Hill was to get the boot from Williams. So let’s delve into the murk behind these speculative stories. As ever, it’s a fascinating tale of wheels within wheels.

Time was when negotiations between a team principal and a driver would be transacted in person or by phone, often with the driver’s manager as the medium. It could take months. There would be arguments. There would be haggling. Each party would play off potential suitors against one another. Eventually they would settle on a mutually agreeable rate. Famously, Ayrton Senna and Ron Dennis once settled one of their protracted contractual tussles on the toss of a coin.

Now that we all march to a rolling news cycle, the internet has introduced a wealth of new stratagems for the savvy negotiator, especially if they like to play dirty – as all the most effective driver managers do.

In recent weeks we’ve seen David and Steve Robertson publicly flirt with Toyota as part of their campaign to ensure Kimi Raikkonen gets a healthy stipend at McLaren (although they’ll be regretting pinning their tail to that particular donkey now). John Howett obligingly issued an on-the-record quote to the effect that he’d love to pay Kimi an exceedingly large amount to bring his winning pace, if not his winning PR sensibility, to Toyota. The news went round the internet faster than you can say Ctrl-A-Ctrl-C-Ctrl-V. In due course, somewhere in Woking, a phone rang…

Jenson Button’s manager, Richard Goddard, has been playing a similar game for a couple of months now. It’s a tricky pursuit, because controlling how news is disseminated on the web is like trying to take a firm grip on a conger eel, but play it right and it’s win-win all the way, even if the news outlets who unwittingly become your shills are second rate. It’s all in the phrasing.

In previous weeks we’ve been invited to feel sorry for JB because he has to pay for his own dry cleaning. Last week Goddard let it be known, also via the Guardian and the Daily Telegraph, that Jenson had visited the McLaren factory.

“Let’s face it, everyone likes to feel wanted,” he said. An innocuous enough sentence, but in the hands of unscrupulous amateur hacks who are hungry for clicks it is potential dynamite. Thus followed the Planet-F1 headline: “Goddard: Button feeling unwanted by Brawn GP.” With a little help from the Twittering classes and a spot of Ctrl-A-Ctrl-C-Ctrl-V from other sites, the story was soon everywhere, even though it bore scant relation to the words Goddard actually uttered.

For these reasons, quotable people who work in F1 are usually very careful what they say. Over the weekend, the Times followed up the factory visit story, fleshing it out with some well-sourced advance details of today’s Mercedes announcement. It was interesting for many reasons, not least because it contained an on-the-record admission from a McLaren spokesman that Jenson had been in town: “Having just arrived at Heathrow, Jenson made a small detour to Woking to say hello.”

My old boss is a smart cookie. He knows when a denial is pointless (a separate Times piece, carrying Martin Brundle’s byline, kicked off with a claim that Jenson was there for two hours and met both management and a senior engineer) and when an “I can neither confirm nor deny” will be taken as a “Yes”. The soundbite confirmed that McLaren are in the game without actually committing the team to a position, and its wording was supremely difficult to beat out of shape if you were of a mind to try to spin a story out of it. He could easily have appended the hashtag #upyoursGMM.

Driver negotiations generally don’t fall within the PR department’s remit, so it’s fair to assume that the other salient details in the Times story came from the Button camp rather than the McLaren spin machine. But this isn’t a one-player game – and that’s where Nick Heidfeld comes in. He may be a middling talent but he’s a free agent and he was born in the right country to be a plausible prospect for a Mercedes seat.

But why would any front-line team employ a driver who has next to no PR value, even in his own country, and who has failed to parlay a race-winning car into a race win when he had the chance? The answer is that they probably wouldn’t, and yet here we are reading that Nick Heidfeld is to drive for Mercedes GP. It smells like a bluff to me. You can read it as Brawn saying to Goddard, “Just because we’re about to take delivery of a stack of Benz wonga, it doesn’t mean we’re going to buckle to your salary demands.”

It’s ironic that the money for the windtunnel that shaped the BMW that provided Heidfeld with his best chance to win a grand prix came from Mercedes – to buy Kimi Raikkonen out of his Sauber contract when Mercedes chose him over Heidfeld in 2001.

In spite of Kimi’s well-documented battles with unmotivation and the bottle, he has a world championship to his name. Heidfeld? Michael Schumacher he ain’t. Even the sturdy burghers of his home nation are wont to ask, “Who are you, anyway?” Mercedes declined to employ him in 2001 and he has done nothing in the interim to convince them that decision was wrong. Auto Motor und Sport knows that, whether they’ve been tipped the wink or not.

Of course, I may be wrong. But let’s not call the whole thing off.




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22 Responses

  • 16/11/2009 at 16:57:46#1 - me said:

    He could easily have appended the hashtag #upyoursGMM

    by far, my favourite hashtag of all time!

  • 16/11/2009 at 16:58:51#2 - Journeyer said:

    Lots of excellent bits in this article, from the hashtag, to the "Benz wonga", to the return of "Who are you, anyway?"

    Informative, yet hilarious as well. SPC is privileged to get a writer of his calibre writing this AMAZING stuff for us. :D

    Stuart, you are AWESOME.

  • 16/11/2009 at 16:59:34#3 - MoJoker said:

    Great post.:)

  • 16/11/2009 at 17:05:21#4 - Steven Roy said:

    I always found it amazing that Senna convinced Ron that they did not have coin tossing in Brazil and so Ron had to explain the concept to him. The country is football mad and the first thing that happens in any football match anywhere in the workd is that the referee tosses a coin.

  • 16/11/2009 at 17:06:52#5 - Stuart C said:

    I nearly forgot to include 'Who are you anyway?'…

  • 16/11/2009 at 18:36:18#6 - Adie said:

    That's a great post...and finally something sensible said about the whole affair!

    Thank you Stuart

  • 16/11/2009 at 19:15:54#7 - Lady Snowcat said:

    And we have the "Brawn is going to be an International team" and "we won't have two German drivers" from the Benz crowd (plus Mr Fry as well in an interview on the Beeb)....

    Kimi has been having an awful lot of chats with Norbs at the races... I saw him...

    And...

    I really really want it to be so.... of course....

  • 16/11/2009 at 21:57:35#8 - Andy Taylor said:

    An excellent and informative article, I particularly liked "The news went round the internet faster than you can say Ctrl-A-Ctrl-C-Ctrl-V."

  • 17/11/2009 at 01:33:42#9 - Dan Brunell said:

    Ah the new world of the internet. The PR world have finally caught up. Sorry if this is a bigger picture but you post illustrates something interesting happening to new media.

    It reminds me of me something I presented at a seminar a few months ago. Where there are so many news outlets and so few news stories, that the commentary takes over the news. It’s the reason why there are ten news channels on American cable TV. It not because they are ten separate news gathering organizations competing against each other (they let AP and Reuters do the dirty work for them) but they are ten channels of commentary specifically gear toward the demographic of their audience reacting to the news.

    It's the same thing has happened with Formula One. There are so many sites that comment on F1 news, that it makes the job of PR agents and communication staffers with these teams, sponsors, organizers, and drivers so easy. If you want to create a buzz or controversy or PR or whatnot; send a press release and it will be in your words will be Ctrl-A-Ctrl-C-Ctrl-V. Or in GMM's case, Ctrl-A-Ctrl-C-Ctrl-V reworded repeat three or four times.

    I won’t regurgitate you points but you are spot on. This sort of manipulation done by agents and teams are stuff that normal F1 reporters like you and well-informed fans (which I would consider most of the sidepodcast community) to dismiss the facts from realities. However as you mentioned it allows for vultures like GMM to prosper. They play off ignorance of news sites like ESPN who don’t know any better and will just cut the check to them.

    The thing is; I think the tide is turning a bit against this stuff.

    See the one big mistake that American newspapers made with the internet is that they cared more about being timely then playing to their strength of being insightful. It played against the natural competitive streak of journalists who would be in competition to see who can get a story out first. It killed them because everyone had that particular story out there. It was also free because everyone was afraid that if they made people pay for the exact same AP story, they would go elsewhere. They didn’t realize that their strength was the quality of the reporting that the public could not get anywhere else. It’s has killed them as they’ve hemorrhaged the very staff they need to survive to provide this quality. (Thank god I didn’t make it a career and went to media relations instead.)

    It something that reminds me of what Joe said in his last podcast to the effect that anyone can tell you the news but it matter when someone intelligent tells you what it means. What the newspapers in America now are realizing and what the hopefully successful ventures of GrandPrix+, Autosports, and Racecar Engineering into on-line subscriptions will show is that people will always pay for quality above all else. We may not like having to sign in or depart with hard earned dollars but in order for these publications to keep the quality up, they need our money to function.

    I think this is the directions things are going and I think it will work out. There will always be tabloid rags like GMM to sit on the grocery store racks, but when push comes to shove and you want to know what going on, you go to a place you trust. It's why the magazine "The Economist" cannot keep on the shelf over here.

    It is also the same reason why I like Joe Saward. That why I like Sidepodcast. That is why I like writing to the caliber you showed in this article Stuart.

    There are things worth supporting... Which reminds me I need to set up an automatic deduction account with Sidepodcast.
    Nice work, even if I do slight disagree with you sentiments on Quick Nick. I rate him a bit more than you I guess.

    Dan

  • 17/11/2009 at 01:34:24#10 - Dan Brunell said:

    Sorry, that was WAY too long. I get carried away sometimes.

  • 17/11/2009 at 01:35:02#11 - Journeyer said:

    Sorry, that was WAY too long. I get carried away sometimes.

    You should've made it a guest post. But it's cool - lemme read. :D

  • 17/11/2009 at 01:38:47#12 - Steven Roy said:

    Sorry, that was WAY too long. I get carried away sometimes.

    Nothing wrong with a long thoughtful comment

  • 17/11/2009 at 01:41:00#13 - Journeyer said:

    Nothing wrong with a long thoughtful comment

    Indeed. Extremely insightful too. I agree with every word (save the bit on Nick - hehe.)

    Way to go, Dan! :)

  • 17/11/2009 at 01:56:40#14 - Jackie said:

    I love your writing style Stuart, authoratative in content yet amusing at the same time. The #upyoursGMM must surely make the wiki as one of the best ever hash tags.

  • 17/11/2009 at 06:34:18#15 - Rich said:

    While I agree with your insight on the strategy I take exception to other points. Indeed Heidfeld is no more than bait in a big man's playing field. Heidfeld was used for two main reasons, a) he was German to load a bit nationalism, and b) other than Sauber Qadbak he appears to have no seat next year. No other driver fits the use for being bait as Timo is popularly believed to have a seat with Renault pending the final nature of their competition next year and Sutil is really too error-prone (and does not have a German pedigree) to be a viable option.

    Now I come to your assessment of Nick - it is certainly not based on any objective analysis. Firstly Nick is actually a little more popular in the German-speaking community than suggested. If you want Nick to do PR he will do it, he will never be flamboyant the way Lewis is but he will be professional in his duties (remember I am not sure that BMW want to go for the quite the same advertising that McLaren does). There is plenty of evidence of Nick doing PR stunts (including taking the seat of a racing motor-cycle, driving an F1 car on ice etc). Few drivers have really floored their cars while doing the Goodwood Festival of Speed - of course an F1 is now not allowed to.

    When it comes to analysis of result these have to be interpreted against the statistical probability of that car/team scoring points. Using this approach Nick measures up well, in fact very well (as he is in the top quarter). I will accept he is not the best driver on the grid and nor is Kimi. Kimi is like Trulli undeniable fast for short distance or for one lap respectively but his race pace performance is not great considering his reputation. He had considerable fortune in getting his championship (this is not to say it is un-deserved).

    In tongue-in-cheek I on this forum linked to a video of a compilation of Nick's overtaking and saying he was the best overtaker (more specifically the best double overtaker). I provided evidence and this remains a hypotheses, quite possibly a wrong hypothesis. In a scientific method you make observations, these allow a hypotheses to be generated which then needs to be tested. I did a search for videos of overtaking in YouTube and Nick features very prominently. It should be easy to disprove the above hypothesis with what is one the web. As yet noone has done so and arguable a wrong hypothesis stands.

    In terms of points over the last three seasons Nick has scored the fifth most of any driver. The only drivers to have bettered Nick's performance coincidentally have driven for either McLaren or Ferrari. Yes you could argue that for 2007 and 2008 the BMW Sauber was the third best car on the grid (I would agree) - so this is not completely surprising. Nobody could make out that the BMW Sauber was a top car throughout this 2009 season and the points obtained reflected this. However, Kovy has been in one of the top two teams for two seasons and has not made even the top six.

    If you looking at fastest laps in the last three seasons Lewis has scored 3 and Nick 2. Incidentally Robert has yet to record a fastest lap despite being Nick's team mate.

    I am admitted as biased towards Nick as Stuart is against him. In the remote chance that Nick actually lands a seat at either Macca or Brawn it will not be completely without merit as suggested by Stuart. I will admit it will be because one driver priced themselves out of contention - but then are they really that hungry to win a race or championship.

    For me the dream team of 2010 would be Mercedes F1 (nee Brawn) with Jenson and Nick as team mates. Nick's real skill is not actually overtaking (it was tongue-in-cheek) but handling tricky track conditions where driver judgment is called (and with no refueling this could become more important next year) and an almost Schumacher like ability to jump competitors at pitstops (probably fast in-laps) - see Abu Dhabi. You add Nick's uncanny skill at reading track conditions with Brawn's strategy and you are sure to have a driver capable of hauling in the points and backing a Jenson or Lewis in their championship aspirations. Having "two champions" is also not always the best option as history will show they take points off each other and a third party could nip in for the win. Finally Nick is recognised as good at car set-up (possibly not as good as Ruben who is going to be missed) and this would be especially helpful to Jenson.

    To conclude my rant I think that Mercedes and McLaren will settle the driver issues amicably - if Kimi gets more reasonable with his terms he will be with McLaren (and Jenson at Mercedes). In fact I believe they will actually co-operate somewhat as it will be in their best interests to compete against Red Bull and Ferrari next year. Mercedes and McLaren are gunning to lock out the rest of the teams next year with victories for either one team in both championships.

  • 17/11/2009 at 09:30:13#16 - Stuart C said:

    Some very long comments there! Interesting stuff.

    Dan – 'forsure' you're right. There will always be people on forums who will believe a story because they've seen it repeated in several outlets, but sites such as AUTOSPORT are generally careful not to get caught up in the rush to be first with the news. The net effect is that you now see commenters saying, "I won't believe it until I see it on [insert name of trusted site here]." The sites who defend their brand in this way will prevail in the end.

    Rich – Thierry Boutsen had his fans, too, and he was/is a very nice chap. But at the end of the day he was still a journeyman. I hope I haven't caused offence by knocking a driver you like; that certainly wasn't the intention, and I can assure you that I'm not 'biased' against him. But the fact remains that McLaren and Mercedes took Kimi Raikkonen in preference to him in 2001, and given a choice they would do so again. BMW-Sauber found that he was a very good development driver and had a better grasp of how to set-up the car than Robert Kubica, which is why they continued to employ him. But if you wanted a German driver who was a hot prospect right now, you'd employ Nico Hulkenberg, wouldn't you? Sadly, Merc were an hour late and a quid short for that.

  • 17/11/2009 at 11:45:58#17 - Journeyer said:

    Sadly, Merc were an hour late and a quid short for that.

    If things go as planned, Vettel and Hulkenberg will have to choose between Ferrari and Mercedes for the 2013 season. If both teams prove to be competitive, it'll be very interesting to see which way they go...

  • 17/11/2009 at 11:47:17#18 - Journeyer said:

    The net effect is that you now see commenters saying, "I won't believe it until I see it on [insert name of trusted site here]." The sites who defend their brand in this way will prevail in the end.

    It'll be a question of how many are willing to do that, and how many just believe the first thing they see. Media is sometimes a reflection of its audience. And the reflection isn't always flattering.

  • 17/11/2009 at 11:49:44#19 - Sean Golding said:

    If things go as planned, Vettel and Hulkenberg will have to choose between Ferrari and Mercedes for the 2013 season. If both teams prove to be competitive, it'll be very interesting to see which way they go...

    You're assuming here that The Hulk will cut it in F1. He may have done well in lower series but that doesn't always mean they'll succeed in F1. That said, I hope he does, I want to be able to call him The Hulk. :)

  • 17/11/2009 at 11:51:26#20 - Gavin Brown (RubberGoat) said:

    You're assuming here that The Hulk will cut it in F1. He may have done well in lower series but that doesn't always mean they'll succeed in F1. That said, I hope he does, I want to be able to call him The Hulk. :)

    Well that is a fair point, in which you could use many examples to prove. But I know what I saw, and he is fast and consistent!

  • 17/11/2009 at 11:54:01#21 - Steven Roy said:

    Well that is a fair point, in which you could use many examples to prove. But I know what I saw, and he is fast and consistent!

    I think Hülkenberg is a real talent and will succeed in F1.

  • 17/11/2009 at 12:07:40#22 - Nick said:

    A really insightful article Stuart. Some great comments there too. "Who are you anyway?" amusing as always :D


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