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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
French Grand Prix at Paul Ricard
Lando Norris, McLaren Autosport BRDC Awards [Credit: Martyn Pass PR]
Kimi Raikkonen tests the 2017 F1 tyres in Abu Dhabi [credit: Pirelli]
Lewis Hamilton tests the 2017 F1 tyres in Abu Dhabi [credit: Pirelli]
Daniel Ricciardo tests the 2017 F1 tyres in Abu Dhabi [credit: Pirelli]
Kimi Raikkonen tests the 2017 F1 tyres in Abu Dhabi [credit: Pirelli]
Lewis Hamilton, Mercedes, Pirelli 2017 tyre test [Credit: Pirelli]
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27.11.2016 - Race, Celebration, 2nd place Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid and Champion 2016 and Lewis Hamilton (GBR) Mercedes AMG F1 W07 Hybrid race winner

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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.



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