Formula 1 owner CVC may continue to lose money but the F1 teams seem to be doing pretty nicely as they took in $658 million from prize money in 2010, a jump of 164 percent compared to the previous Concorde Agreement, Bloomberg is reporting today.
Bottom-line, if you’re a numbers-phobe? This will be more fodder for the coming agreement renewal war. CVC lost $660 million (see how close that is to the team’s prize money haul) based on various financing costs from its purchase of the series.
The team’s prize money also was a tidy 21 percent increase just compared to 2009.
Now I know I’m venturing into prime Negative Camber territory with this story, but last I heard the big boss had rented an experimental plane from Sir Richard Branson and was on a rescue mission to find and save Mark Hallam. So the full breakdown will have to wait until the two of them are back safely.
A separate filling also disclosed Bernie Ecclestone’s salary, which was $7.9 million.
F1’s net income was $296 million; sales crept up 2 percent to $1.08 billion, according to Bloomberg as a result of the added races in South Korean and Canada.
I say that’s not much of an sales increase when those two races represent an increase of 10% or so in terms of races. South Korean maybe didn’t add much — and other races, Turkey perhaps, probably saw ticket declines.
It doesn’t take a financial wizard to see where CVC/FOM and FOTA could be headed toward a major fight given these figures. I can see where CVC would argue something based on the pure sustainability of the series, given its losses. You know: “Do you want 50% of nothing or 30% of something?”
And the teams? Well, they’ve tasted these higher profits. It tends to be hard to go back after that.