THE two Oxfordshire-based Formula 1 teams that have gone into administration still had an intrinsic value because of their highly prized racing licences, according to a motorsport head.

Chris Aylett, chief executive officer of the Motorsport Industry Association, said: “These are globally sought-after franchises. They’re in a protected position in that they do own one of those very rare licences.”

Administrators were appointed to the Marussia F1 Team, in Banbury, on Monday, while Caterham Sports Limited, which designs and builds cars for the Caterham F1 team and is based in Leafield, went into administration last week.

There are only 11 racing teams licensed to race in the F1 championship.

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Mr Aylett said it was important to note that Marussia and Caterham were in administration, “they haven’t gone bust”, and that “they are being forced to restructure and find new investors”.

He estimated Marussia and Caterham each generate about £50m to £60m in annual turnover and each have about 20 to 30 primary suppliers.

However, he said that over the past five years many motorsport suppliers had diversified their customer bases in response to concerns about the F1 competition.

“Formula 1 is a high payer but is a more risky payer,” he said.

Peter Whyman, sales and marketing director of Zircotec, in Abingdon, said of the two F1 teams’ administrations: “It will obviously have an impact on the motorsport economy throughout Oxfordshire.”

Zircotec supplies ceramic and metal coatings for carbon composites to 10 of the 11 F1 teams, although Mr Whyman said he was “not at liberty” to reveal which teams.

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