F1 Finance - What is going on?

[wnut]

Originally Posted by wolfhound

Even though I am not a fan of Pitpass I like this article by Mike Lawrence. Its where he compares F1 teams to football teams and how soccer players are paid compared to F1 drivers.

http://www.pitpass.com/50876/The-Elastoplast-Technique

Thanks Wolfhound, well written piece.

This is the bit that gets me

"There are other factors, one of which is that CVC Capital Partners takes an enormous slice of revenue to the benefit of its investors. In 2012, that slice was 550 million pounds. That was money taken from the sport without a penny being returned.
That equates to fifty million pounds per team, which is almost the total budget for some teams. The rights to Formula One were sold by the FIA for about half what CVC makes per annum.
This is not a criticism of CVC, which exists to do the best it can for its investors, it is a criticism of the fabric of Formula One which allowed it to happen."