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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

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Start, Monaco F1 Grand Prix, 21st-24th, May 2009
25.06.2017 - Race, Sebastian Vettel (GER) Scuderia Ferrari SF70H and Lewis Hamilton (GBR) Mercedes AMG F1 W08
25.06.2017 - Race, Sebastian Vettel (GER) Scuderia Ferrari SF70H and Lewis Hamilton (GBR) Mercedes AMG F1 W08
25.06.2017 - Race, The race stopped, Fernando Alonso (ESP) McLaren MCL32 and the Safety car
25.06.2017 - Race, The race stopped
25.06.2017 - Race, Lewis Hamilton (GBR) Mercedes AMG F1 W08
25.06.2017 - Race, The Safety car and Lewis Hamilton (GBR) Mercedes AMG F1 W08
25.06.2017 - Race, Carlos Sainz Jr (ESP) Scuderia Toro Rosso STR12 and Fernando Alonso (ESP) McLaren MCL32
25.06.2017 - Race, Esteban Ocon (FRA) Sahara Force India F1 VJM10 and Felipe Massa (BRA) Williams FW40
25.06.2017 - Race, Sergio Perez (MEX) Sahara Force India F1 VJM010 and Sebastian Vettel (GER) Scuderia Ferrari SF70H
25.06.2017 - Race, Lewis Hamilton (GBR) Mercedes AMG F1 W08 and the Safety car
25.06.2017 - Race, Fernando Alonso (ESP) McLaren MCL32 and Marcus Ericsson (SUE) Sauber C36
25.06.2017 - Race, Kimi Raikkonen (FIN) Scuderia Ferrari SF70H
25.06.2017 - Race, 3rd place Lance Stroll (CDN) Williams FW40
25.06.2017 - Race, 3rd place Lance Stroll (CDN) Williams FW40
25.06.2017 - Race, Fernando Alonso (ESP) McLaren MCL32 and 3rd place Lance Stroll (CDN) Williams FW40
25.06.2017 - Race, 3rd place Lance Stroll (CDN) Williams FW40
25.06.2017 - Race, Daniel Ricciardo (AUS) Red Bull Racing RB13 race winner

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