Canadian buys F1 Jordan for $50 million

Associated Press

1/24/2005

LONDON (AP-CP) - Canadian billionaire Alex Shnaider has bought the Jordan Formula One racing team for an estimated $50 million US.

The team will maintain the Jordan name in 2005 with the Toronto-based Midland Group operating it through a subsidiary called Midland F1, Jordan said Monday.

The team name will be changed in 2006, with team owner Eddie Jordan's future unclear. Since winning two races in 1999, Jordan has slipped to the back of the 10-team grid and has been struggling to find financing under Eddie Jordan.

"I am very pleased with this development, as it will immediately provide us with a full season of hands-on learning experience," Shnaider said in a statement released in Toronto.

"We have no illusions regarding the technical demands of Formula 1 - undoubtedly the most stringent in motorsport - so merging with a proven team accelerates our ability to be competitive as quickly as possible.

"Our initial plans to create a team from the ground up will be adjusted to reflect this positive transaction, and the establishment of Midland F1 will continue according to schedule."

Shnaider, 36, was born in St. Petersburg and has both Canadian and Russian citizenship. He has a bachelor's degree in economics from York University.

Jordan acknowledged last year he was spending about one million pounds ($2.29 million Cdn) of his own money each month to keep the team afloat.

"I wholeheartedly believe that Midland joining with Jordan will make the team stronger," Eddie Jordan said. "The sport and the required resources have changed and this deal provides the team with the security and strength it needs."

Shnaider is chairman of the Midland Group, a privately owned international trading and investment-holding organization.

"I'm glad for the time being we keep the Jordan name," Eddie Jordan said. "I am also delighted to confirm that I will remain involved with the team and will be working with Jordan in a variety of commercial and sponsorship capacities as we move forward."

Jordan and Midland declined to confirm the purchase price, although industry officials and news reports estimated it at $50 million.

Jordan, which will use Toyota engines this year, has yet to announce its drivers or a launch date for its new car.

Germans Nick Heidfeld, Timo Glock and Italian Giorgio Pantano drove for the team last season. Heidfeld's best result was a seventh in Monaco while Glock was seventh in Montreal.

The 2005 season opens March 6 in Australia. Canadian Jacques Villeneuve is back on the circuit, driving for the Sauber team.

Ferrari unveiled what technical director Ross Brawn termed its "best car ever", the F2005 at its Maranello headquarters on Friday.

However, both Michael Schumacher and Rubens Barrichello will have to wait a while before taking the new car out on the track. The F2005 is not expected to make its competitive debut until the Spanish Grand Prix in May.

"I am extremely proud of this car and the work of the teams involved, design, manufacturing, assembly and logistics," said Brawn. "I am not afraid to again say that I think it is the best car we have produced ...so far."

Ferrari plan to start the new season with an updated version of the F2004, a car which won 15 of 18 races last season. However, winter testing have some believing Ferrari are not the clear cut favourites when the season starts March 6 in Australia, something team chairman Luca du Montezemolo admitted to during the unveiling.

"After six world titles our goal it to stay at the top and make it seven, knowing that it can happen that we won't win."

Barrichello, who is entering his sixth year with Ferrari, says Renault have shown signs of threatening Ferrari's dominance.

"From what we have seen in winter testing Renault are quick over a single lap and also quick over a long distance," said Barrichello. "Only when we get to Melbourne will we see what the new order is among the teams."

Brawn admits that if the team finds itself off the pace after the first two races, the new car could make its debut sooner rather than later.

"We plan to introduce the car in Barcelona but depending how it tests, an earlier introduction could be anticipated," said Brawn. "The logical race to do it is Bahrain, because of the (two race) engine regulations. But it depends on how the interim car is going."

Brawn says the decision to start the season with the modified car - something the team has done in the past with great success - was due to the rule changes implemented for 2005.

"The new regulations, aerodynamics, tires, etc, brought different demands and we decided we needed more time," said Brawn.

"The addition of the extra Grand Prixs, totalling 19 for 2005, meant that mid season updates would be more difficult and it also meant a long season with opportunities to catch up if we made a slow start. We therefore made the decision to start the season with a modified version of the 2004 car and introduce this car after a few races. We believe it is the correct decision, even if the beginning of the year may be a little frustrating."

Schumacher, who starts the season as the oldest driver on the circuit, says Ferrari will be well prepared.

"Of course, I would have liked to have the new car immediately," said the seven time champion. "We have taken a decision that is a compromise, but I think many of the other teams would like to have our compromise!"

Brawn says there are no "radical features" on the new car only "logical progressions".

"It is stiffer, lighter, more stable, and, most importantly with the new tire regulations, it should be less stressful on the tires," he added.

The new car is the first to be designed by engineer Aldo Costa, who takes over from Rory Byrne as chief designer.

The shape of the chassis has been revised, with modifications to the opening of the sidepods to accommodate a new cooling system. The engine cover and sidepod winglets have also been redesigned, with a second wing added to the engine cover. The layout of the exhausts is significantly different from the previous car. For 2005, it is almost entirely integrated within the bodywork.

The back of the car, including the rear suspension, has been revised to maximize the use of a smaller gearbox made from titanium and carbon fibre.

Byrne says when the F2005 does debut later this year, it will look much different than the one unveiled on Friday.

"The areas directly affected by the new regulations, like wings and diffuser, are obviously all new but even radiator, exhaust and gearbox layouts have been fundamentally revised to optimise the aerodynamics. In addition, there are several development items planned to be introduced during testing in the next month so when it first races it will look differently in some areas to the car you see here."

Ferrari is planning to introduce a full, revised power-steering system to improve the driver's control of the car.

The 055 engine is new but much of the internal components came from the last version of the 053, which is currently powering the interim car, the F2004 M.

Ferrari engine chief Paolo Martinelli explains that the 2005 engine has been designed to only fit the F2005 chassis.

"A great deal of work in terms of design and experimentation was and will be focussed as a priority, on meeting and maintaining the necessary reliability for this new mission profile," says Martinelli, who has set a goal of 1,400 km in terms of engine life for the new powerplant.

"One has to take into consideration that for many of the engine's internal parts, especially those that move, the 1400 km range is a severe test that conflicts with maintaining performance."

Martinelli refused to get into any detailed discussion about horsepower, saying the new engine will have "sufficient" horsepower, delivered in "driveable" and "reliable" manner to reach the team's 2005 F1 championship targets.

Ferrari also signalled that it will not join the other nine teams and their self imposed testing ban, confirming that Luca Badoer will test the new car next week. Schumacher and Barrichello won't set foot in the new chassis until after the second race of the season, the Malaysian Grand Prix.