[Bob Tanner]

The following was reported by Dave Despain on Wind Tunnel last night:
SPEEDtv.com has learned that the struggling start-up USF1 Formula 1 team has formally petitioned the FIA to defer the team's entry into the sport until 2011.

Team principals Ken Anderson and Chad Hurley have offered to post a “substantial, seven-figure” surety bond as proof of their intentions to race next year.

The request for a deferment follows a breakdown in merger discussions between USF1 and the Spanish Campos Meta team. The Serbian-based Stefan GP team also had made overtures about working with USF1, but those talks also failed to yield anything substantive.

It now appears that neither USF1 nor Campos will be on the grid for the season-opener at Bahrain.

Contrary to media speculation elsewhere, Hurley is still very much involved in the USF1 effort.

I've read an very unsubstantiated report that Jacques Villeneuve is being fitted for a seat with Stepan GP? Sounded like a rumor at best, or even someones dream?

[WestCoast]

Originally Posted by Bob Tanner

The request for a deferment follows a breakdown in merger discussions between USF1 and the Spanish Campos Meta team. The Serbian-based Stefan GP team also had made overtures about working with USF1, but those talks also failed to yield anything substantive.

I guess they just pulled the "US" part, out off a hat.

Somehow I imagined it to be an effort put together by one of these guys; Andretti, Rahal or Penske.

[BringBackWilkesboro]

Originally Posted by Bob Tanner

The following was reported by Dave Despain on Wind Tunnel last night:
SPEEDtv.com has learned that the struggling start-up USF1 Formula 1 team has formally petitioned the FIA to defer the team's entry into the sport until 2011.

Team principals Ken Anderson and Chad Hurley have offered to post a “substantial, seven-figure” surety bond as proof of their intentions to race next year.

The request for a deferment follows a breakdown in merger discussions between USF1 and the Spanish Campos Meta team. The Serbian-based Stefan GP team also had made overtures about working with USF1, but those talks also failed to yield anything substantive.

It now appears that neither USF1 nor Campos will be on the grid for the season-opener at Bahrain.

Contrary to media speculation elsewhere, Hurley is still very much involved in the USF1 effort.

I haven't followed the F1 offseason very closely until just recently, so I'm not the most educated on the subject, but how is it they can offer a seven figure surety bond when they have unpaid employees and suppliers? Maybe there's something I'm missing, but that just seems like more trouble to me.

Originally Posted by Bob Tanner

I've read an very unsubstantiated report that Jacques Villeneuve is being fitted for a seat with Stepan GP? Sounded like a rumor at best, or even someones dream?

I had heard Villeneuve confirm he was personally interested in them, but nothing more than that and he didn't seem overly optimistic about it. I've also heard Ralf Schumacher and Karun Chandhok, who we know looks headed for Campos.

[Bob Tanner]

Originally Posted by BringBackWilkesboro

I haven't followed the F1 offseason very closely until just recently, so I'm not the most educated on the subject, but how is it they can offer a seven figure surety bond when they have unpaid employees and suppliers? Maybe there's something I'm missing, but that just seems like more trouble to me.

I had heard Villeneuve confirm he was personally interested in them, but nothing more than that and he didn't seem overly optimistic about it. I've also heard Ralf Schumacher and Karun Chandhok, who we know looks headed for Campos.

As far as the bond goes, to my personal understanding you don't post the total amount. You actually have to post between 5% and 15% to the surety company and they post the bond in the larger amount. I could be wrong in that assumption, though?

Whatever, attempting to enter the highest level of motor sports with no car, no drivers and questionable capital (These .com organizations have always made me as nervous as a dog passing peach seeds. Any organization which have CEO's who feel jeans and a tee shirt are haute couture make me NOT want to entrust a penny to them), give US involvement in the sport a black eye.

[BringBackWilkesboro]

Originally Posted by Bob Tanner

As far as the bond goes, to my personal understanding you don't post the total amount. You actually have to post between 5% and 15% to the surety company and they post the bond in the larger amount. I could be wrong in that assumption, though?

Nope, I think you're about right. This is a bit of the explanation I got:

When a first party (obligee) calls upon a second party (principal) to perform duties in contract form, a surety bond is issued by a third party (surety), guaranteeing that the second party will fulfill an obligation or series of obligations to the first party. In the event that the obligations are not met, the first party will recover its losses via the bond.

The principal will pay a premium (usually annually) in exchange for the bonding company's financial strength to extend surety credit. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred.

If the principal defaults and the surety turns out to be insolvent, the purpose of the bond is rendered nugatory. Thus, the surety on a bond is usually an insurance company whose solvency is verified by private audit, governmental regulation, or both.

A key term in nearly every surety bond is the penal sum. This is a specified amount of money which is the maximum amount that the surety will be required to pay in the event of the principal's default. This allows the surety to assess the risk involved in giving the bond; the premium charged is determined accordingly.

Who'd have thought the definition of a surety bond would show up in motorsports forum? I guess you never know in this day and age.

Originally Posted by Bob Tanner

Whatever, attempting to enter the highest level of motor sports with no car, no drivers and questionable capital (These .com organizations have always made me as nervous as a dog passing peach seeds. Any organization which have CEO's who feel jeans and a tee shirt are haute couture make me NOT want to entrust a penny to them), give US involvement in the sport a black eye.

That's what makes me question just how ready they'll be even for 2011. If FIA allows them to defer and they become basically required to compete in '11, I worry about them scrambling to throw a viable program together and showing up unprepared, resulting in a wasted grid spot.

[Bob Tanner]

Originally Posted by BringBackWilkesboro

That's what makes me question just how ready they'll be even for 2011. If FIA allows them to defer and they become basically required to compete in '11, I worry about them scrambling to throw a viable program together and showing up unprepared, resulting in a wasted grid spot.

I have heard it said that Peter Windsor, one of the principles, has pulled out, but I can find no official report of that.

As far as Hurley, the major sponsor goes, he founded and runs this YouTube thing. I know the current generation gets all wet whenever talk goes around about these marvelous dot com companies but I'm a bit old school. I prefer sponsors with longer track records and some substance (Ironically, I say this as I sit here, pecking away at my home PC?) I lost a bundle in the dot com crash and I fear that has tainted my opinion of all things dot com.

[Bob Tanner]

And the hits just keep on coming!

The following indicates that, as of yesterday, all USF1 employees have been let go and the Business Development manager's seat in vacant. It's only a blog but there are several stories out there giving the same information. It's not official of course but if this blogger's story is correct...? Oh well, it was a good dream.

Full story follows: USF1 factory closes down « G-Force – A Formula 1 Blog

[BringBackWilkesboro]

Here is confirmation:

FORMULA-ONE - F1: Ecclestone - USF1 Dead, Stefan Future Unsure - SPEEDtv.com

"USF1's dream is definitely over, after the FIA reportedly decided to reject the American team's request to freeze its official entry until 2011."

"With Peter Windsor believed to have already departed USF1, team principal Ken Anderson told BBC Sport on Wednesday that "we are done" in the event that the FIA rejects his request to freeze the entry until 2011."

[Bob Tanner]

Well, all I can say is that originally, on paper, it looked good. <sigh> I imagine this puts a big hitch in any potential USA F1 race?