When the F1 teams reach their hands out for their share of F1 revenue, Ferrari gets to dip its beak in every other team’s pie! That’s according to Blogger Total Sportek stunning revelation about the 2015 payouts.
What’s mine is mine and what’s yours is mine…
Total Sportek has figured out where the money comes from into F1, and to whom it flows. The infographic below tells the story of who’s paying for these racing extravaganzas.
Infographics courtesy of Total Sportek. Heck, the whole story is courtesy of them.
As the race promoters, the circuits pay promotional fees to commercial rights holders of F1. The commercial rights holders are Bernie Ecclestone and fellow shareholders in a private equity firm, CVC. Note all the arrows pointing into Bernie et al and only one flowing out. His group revels in the money from highly lucrative TV rights deals plus sponsorships and other licensing deals. Apparently corporate hospitality packages also do well for them!
Here is where the dough goes…
The $1.8 billion they took in 2014 gets divided into equal two parts. Formula 1 Group gets half, with Bernie’s group taking almost all of that; and Formula 1 Teams get half which goes mostly to the teams. All the Teams get to divide half the Teams portion just for showing up. The other half of the Teams portion is based on performance.
But let’s follow Ferrari’s flow! Look, thy take 5% off the top form, before anyone gets anything. They pick up another 1.65% as a historical payment from the Group, a portion of the Constructor bonus fund from the Group. They get the equal share earned by the top 10 teams, plus they share based on constructors points earned. In 2014, it appears Ferrari took home $210 million.
Contrast that to Marussia who got handed only $10 million – and only that as a kind of charity handout for being so far out of the money.
Special thanks to Peter Bourassa of MMR Motorsports for pointing out this study in his weekly email to subscribers.