The American Forbes has published an article that makes an economic assessment of the F1 teams and decrees: never before have so much money been earned
Days ago, this space wrote about why teams and Liberty Media don’t want new teams to enter F1. Even if it is debatable, the motto is: interested parties want to consolidate earnings and then open up to new entrants. (see here)
The Americans of Forbes, who specialize in covering economic issues, shed more light on the matter, clarifying F1’s line of action in terms of financial viability and increasingly expanding its business and making sure that the activity generates resources to feed itself. . In other words: it’s turning into a money-making machine. (original link is Here)
The publication makes a two-point estimate of the teams compared to this year based on past data: revenues and how much is the operating profit (EBITDA – Earnings before interest, taxes, depreciation and amortization), i.e. excluding costs that do not they are not related to the company’s business. And here’s the jump…
According to the article, F1 teams have gone from a $200m loss in 2019 to an estimated $600m profit this year. The combination of a budget cap and increased revenue has done wonders for the coffers of the category. So much so that today it is possible to state that a team can have its budget largely covered by cash prizes.
So far, only AlphaTauri has publicly presented its accounting data for 2022. Ferrari presents its data together and gives an overview of the competition department. The others are still awaited, although the FIA has access to the data since March of this year.
While it may be disputed, the current commercial deal has been hugely good for F1 in general. The discrepancies still exist, but they are smaller than in the past and we can say that all, in some way, have been cured.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
