Formula One profits up

[Brogan]

There's an article on the BBC about the bumper profits Formula One is making.

The Formula Money report says that F1's holding company made net profits in 2010 of $137.1m (£85m) after costs, which included paying race teams $658m.

It brings the net profits made since private equity firm CVC took control of F1 in 2006 to $1.22bn, the report says.
[...]

CVC, which now owns 63.4% of F1's Jersey-based parent company Delta Topco, made $87m from the sport in 2010, Formula Money estimates.
The remaining $50m in profits was split between investment banks and individuals who own the rest of Delta Topco, including Sir Martin Sorrell, boss of advertising giant WPP with a 0.3% stake.
And it brings to $800.8m the profits CVC has made in the five years since it paid $1.7bn for 69.6% of F1's commercial arm, the report says.
Christian Sylt, who with colleague Caroline Reid publishes the annual dissection of F1's finances, said that Delta Topco made revenues of $1.6bn last year, and $5.9bn over the five years. "It's an astonishing return," he said.

Would the same amount of revenue be possible if the teams ran the show themselves?
Or is it purely due to Bernie's ruthlessness at chasing the highest bidders for GPs?

The biggest single source of revenue last year was the race-hosting fees of about $567.5m, paid by governments and track owners to stage the events.

To put it in perspective:

Based on the latest figures Mr Sylt puts a $5bn-$7bn price tag on F1. "It's at least worth that, and may be worth more to a determined buyer," he said.

Microsoft paid $8 billion for Skype last week...

Full article here: http://www.bbc.co.uk/news/business-13438913

I'm sure this could probably be merged with an existing thread so feel free to do so if it fits mods.

 

[Fenderman]

.... and yet, whilst the teams struggle to make ends meeteveryones told to cut costsand the tracks struggle to attract punters and entire countries are going belly up and, and and, and and and .... but? Crikey

 

[gethinceri]

It's a business, it's clearly being run well (although based only on those figs, not the full P&L). I wish I owned some of it.

 

[Fenderman]

Milk springs to mind

 

[landogeorgelewis1]

Blimey didn't think F1 would be worth around that much won. Just goes to show how good (despite not liking him) Bernie Ecclestone and his people have run F1.

I'd love someone to do a thread on how much each t.v networks pay to show F1 in they countries around the world.

 

[downforce]

expensive stuff this formula 1

 

[Fenderman]

Yes. It's one of those things you must apply frugally because if you use it up all at once it'll cost a packet to get some more. I prefer the cheap stuff myself because I can splash it all over and not worry about the expense.

 

[FB]

I'd love someone to do a thread on how much each t.v networks pay to show F1 in they countries around the world.

I recall ITV paid £70 million for their 5 year contract when they first signed up. I can't imagine the BBC paid that much although as the Beeb doesn't have much in the way of sport generally these days they may well have paid the same so maybe £14 million a season.

 

[Fenderman]

Yes. All kidding aside, I don't think the Beeb got a discount.

 

[RevMaxPower]

It probably works something like this for the BBC. They get the rights to F1 for FREE - and hire Bernie for £20 Million a year...

 

[Fenderman]

I think they call that a "Bung".