F1 »

Ecclestone's F1 Group more cost-effective than FTSE 100 leaders

Bernie Ecclestone's Formula One Group is a leaner and more cost-effective organisation than the leading FTSE 100 companies, it has been revealed – with the sport's supremo pointing to 'a very tight ship' as the secret to his remarkable success.

On a revenue-per-employee basis, industry monitor Formulamoney has published data that shows that each of the 260 employees of the Formula One Group generate £2.2 million – a figure some £400,000 higher than the next-best FTSE 100 company can boast, and also significantly higher than those of other major sports rights-holders FIFA, the International Olympic Committee, the World Rally Championship and Dorna (MotoGP) and top entertainment rights-holders Nintendo, Marvel, the WWE and Cirque du Soleil.

The Formula One Group's income in 2007 totalled £577.8 million, composed of television rights money, grand prix-hosting fees, trackside advertising and corporate hospitality. Over the same period, private equity firm 3i – the top FTSE 100 member with an annual turnover of £1.4 billion – generated a comparative £1.8 million for each of its 765 employees.

In terms of workforce, the Formula One Group is made up of far fewer staff than most of the country's leading organisations, with the most directly comparable – real estate company Hammerson, with 261 employees – counting a total revenue of £311.5 million, just over half of that of Ecclestone's concern. The closest FTSE 100 representative in terms of overall turnover is Covent Garden owner Liberty International, which has to employ three times as many people in order to do so.

The figures mean the sport is well-placed to weather the current global economic crisis – whilst its ten teams are conversely making redundancies left, right and centre following years of lavish over-expenditure, with Honda having even gone so far as to pull out altogether at the end of last year. Multiple world champions McLaren-Mercedes' workforce is four times higher than that of the Formula One Group.

“We run a very tight ship and the staff are all focussed on maintaining F1's position as the world's most watched annual sports event,” revealed Ecclestone, who single-handedly commercialised the top flight almost three decades ago and issued a further warning to the manufacturers presently involved against forming a 'breakaway' series, as has been mooted amidst the ongoing FIA-FOTA budget cap dispute. “I can't imagine anyone commercialising a sport from scratch again as I did with F1.”

Revenue per employee:

FTSE 100 COMPANIES

1. Formula One Group $4.4m
2. 3i $3.7m
3. Legal and General $3.6m
4. Enterprise Inns $3.6m
5. Tullow Oil $3.4m

KEY GLOBAL SPORTS RIGHTS-HOLDERS

1. Formula One Group $4.4m
2. FIFA $3.0m
3. International Olympic Committee $2.1m
4. World Rally Championship $1.7m
5. Dorna (MotoGP) $1.4m

KEY ENTERTAINMENT RIGHTS-HOLDERS

1. Formula One Group $4.4m
2. Nintendo $2.4m
3. Marvel $1.9m
4. WWE $0.9m
5. Cirque du Soleil $0.2m


Related Pictures

Click on relevant pic to enlarge
Bernie Ecclestone (GBR), Chinese F1 Grand Prix, Shanghai, 17th-19th, April 2009
24.06.2017 - Qualifying, Valtteri Bottas (FIN) Mercedes AMG F1 W08
24.06.2017 - Qualifying, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position
24.06.2017 - Qualifying, 3rd place Kimi Raikkonen (FIN) Scuderia Ferrari SF70H, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position and 2nd place Valtteri Bottas (FIN) Mercedes AMG F1 W08
24.06.2017 - Qualifying, 3rd place Kimi Raikkonen (FIN) Scuderia Ferrari SF70H, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position and 2nd place Valtteri Bottas (FIN) Mercedes AMG F1 W08
24.06.2017 - Qualifying, Davide Valsecchi (ITA), Sky TV and Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position
24.06.2017 - Qualifying, Davide Valsecchi (ITA), Sky TV and Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position
24.06.2017 - Qualifying, Kimi Raikkonen (FIN) Scuderia Ferrari SF70H and Valtteri Bottas (FIN) Mercedes AMG F1 W08
24.06.2017 - Qualifying, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position and 3rd place Kimi Raikkonen (FIN) Scuderia Ferrari SF70H
24.06.2017 - Qualifying, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position and 3rd place Kimi Raikkonen (FIN) Scuderia Ferrari SF70H
24.06.2017 - Qualifying, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position and Davide Valsecchi (ITA), Sky TV
24.06.2017 - Qualifying, Lance Stroll (CDN) Williams FW40
24.06.2017 - Qualifying, Sebastian Vettel (GER) Scuderia Ferrari SF70H
24.06.2017 - Qualifying, 3rd place Kimi Raikkonen (FIN) Scuderia Ferrari SF70H
24.06.2017 - Qualifying, Felipe Massa (BRA) Williams FW40
24.06.2017 - Qualifying, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position
24.06.2017 - Qualifying, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position and 2nd place Valtteri Bottas (FIN) Mercedes AMG F1 W08
24.06.2017 - Qualifying, Lewis Hamilton (GBR) Mercedes AMG F1 W08 pole position and 2nd place Valtteri Bottas (FIN) Mercedes AMG F1 W08

Join the conversation - Add your comment

Please login or register before adding your comments.

Although the administrators and moderators of this website will attempt to keep all objectionable comments off these pages, it is impossible for us to review all messages. All messages express the views of the poster, and neither Crash Media Group nor Crash.Net will be held responsible for the content of any message. We do not vouch for or warrant the accuracy, completeness or usefulness of any message, and are not responsible for the contents of any message. If you find a message objectionable, please contact us and inform us of the problem or use the [report] function next to the offending post. Any message that does not conform with the policy of this service can be edited or removed with immediate effect.


steves - Unregistered

May 28, 2009 10:19 PM

What I mean is the track promoters, television stations and advertisers will just go with the new breakaway series. It's not like you would need to build up the new series. If that's where all of the f1 teams are then it's pretty much the new f1, and everyone, most importantly the fans, will follow.



© 1999 - 2017 Crash Media Group

The total or partial reproduction of text, photographs or illustrations is not permitted in any form.