F1's Revenue Stream.

[Super Tourer]

In the January issue of BusinessF1 their cover story is BE and the banks, part of the article covers projected revenue for 2005.

We rarely see any figures behind F1, so any glimpse is always interesting. Obviously these are topline figures.

Predicted revenue for F1 (essentially FOM's income).

2005 - $710M

Ten years ago the figure was only $126M, from this it shows that the biggest increase in revenue comes from TV rights, which were only $50M in 1994. Circuit fee's were $40M in 1994.

Of the $710M the bulk of of it is TV rights ($380M), with circuit fees contributing ($190M). Then we have trackside advertising bringing in $60M. hospitality $35M with a similar amount from race sponsorship. Finally video games rights bring in $10M.

Under the alleged current shareout, FOM/BE and the assorted companies take 60% ($426M) with the 10 teams sharing the remaining $284M.

In the 2002 accounts for Formula One Association ltd the turnover (revenue) was $642M, with cost of sales at $288M (presumably largely the payments to the teams)

The above is essentially what the GPWC/BE argument is about so it's interesting to see some figures attached to the debate. It's also clear that the alleged extra $500M BE has offered the teams over 3 years (IIRC) doesn't make much of a dent in the income.

I've recently read that the GPWC believe that they can increase revenue to around $1Bn per year, believing F1 to be commercially under developed in some areas.

It's also evident that whoever runs F1 costs still need to be cut dramatically.

To put F1's current $700M annual income into perspective, Toyota and Ferrari alone probably spend that in a year between them. Next year, the 10 teams on the grid will probably spend $2Bn between them, if they took every penny of the available revenue, they would still be footing 75% of the bill themselves.