F1 »

F1 to lose $2.2 billion a year from FOTA breakaway

F1 stands to lose more than £1.3 billion a year – almost half of its total annual revenue – from the Formula One Teams' Association's breakaway series, it has been calculated, with the investment and sponsorship benefits traditionally provided by the FOTA dissenters set to cost the top flight dear indeed.

The eight FOTA rebels – Ferrari, McLaren-Mercedes, BMW-Sauber, Renault, Toyota, Red Bull Racing, Scuderia Toro Rosso and current runaway world championship leaders Brawn GP – announced this morning that, following a breakdown in discussions with the FIA over Max Mosley's controversial budget cap proposal for 2010, they are to go ahead with their threat of establishing a breakaway from next season onwards.

According to industry monitor Formulamoney, that is set to cost F1 far more than just some of its most famous names and all of its manufacturers, with the 'FOTA eight' bringing an annual $2.2 billion to the sport in terms of sponsorship (£407 million), supplier deals (£33 million) and team owner contributions (£917 million) – equivalent to 47 per cent of all income in 2008, so a far from inconsiderable chunk.

Moreover, in the absence of the leading teams – and by extension, therefore, most likely its leading drivers too – there is the fear that fans will hold off from booking tickets to next year's grands prix. That could have the knock-on effect of making it difficult for race promoters to afford the hosting fees – currently worth an average of £14.5 million per event to Bernie Ecclestone's commercial rights-holding Formula One Management (FOM) company – whilst television revenue, corporate hospitality and trackside advertising could also take a significant hit. Formulamoney reports that £336 million is required for F1 to satisfy its annual costs and liabilities and remain solvent.


Related Pictures

Click on relevant pic to enlarge
Start, Monaco F1 Grand Prix, 21st-24th, May 2009
Juan Pablo Montoya celebrates after winning the 2017 Race of Champions title in Miami [Pic credit: ROC]
Race of Champions 2017, action [Pic credit: ROC]
Juan Pablo Monotya. Race of Champions 2017, action [Pic credit: ROC]
2017 Race of Champions line-up in Miami [Pic credit: ROC]
Benetton
George Russell, Mercedes junior programme, [Credit: Mercedes]
Kevin Magnussen - Haas F1 Team [credit: Haas F1 Team]
Valtteri Bottas, Nico Rosberg
Valtteri Bottas - Mercedes AMG Petronas
Valtteri Bottas - Mercedes AMG Petronas
Valtteri Bottas - Mercedes AMG Petronas
Valtteri Bottas - Mercedes AMG Petronas
Motorsport in 30 Seconds, 11th January 2017
Ayrton Senna - McLaren. 1993 Donington Park
Nico Hulkenberg - Renault Sport F1
Renault Formula One Team, launch date, [Credit: Renault F1]
Force India reveals the launch date for its 2017 F1 challenge

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.




© 1999 - 2017 Crash Media Group

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