Quote:
Originally Posted by V8 Fireworks
Why the heck is it so expensive, what kind of race category is that which can't cover it's costs by commercial sponsorship and needs to rely on exorbitant hosting fees (i.e., astronomical ticket prices for fans) and exorbitant television fees. 
The commercial value of the name on the side of the racecar for 14 rounds on free-to-air television should be enough to cover the running costs! If it's not, surely the commercial value is too low (perhaps due to being on subscription television) and the running costs are too high. |
The business model was based on TV + sponsorship and not sponsorship alone just like all professional sport. It is a business based on a predicted income and that was always the intention. F1 is the same Bernie offered the deal to the teams and they knocked it back which in hind sight was not a good idea at all. To ask the business to now change its business/trading model is not realistic unless it can replace the lost income from the TV rights. It is for this very reasons that it can be asumed the result from a substantial loss of these earnings is not going to very pretty. Foxtel announced a new $10 per month streaming division today but that is only a finger in the dyke so to speak.