Formula One Business

Saturday, April 12, 2008 0 comments

F1 championship season of 2008 has begun at Sunday, 16th March 2008. Maybe you wonder why many teams still hold on to participated in F1?
As you know the cost of a team in Formula One is so expensive (about 39 million Pond).
The cost for make the race in one country is expensive too. For example, Singapore need about US$ 150 million to invite F1 race in their country.
So why one country or one team want to pay so expensive for F1??? I called this phenomena of Formula One Business.

According some resources that I have been read, the revenue is so huge. Sunday Herald Sun describe the Formula One brings in annual revenue of more than US$ 261.78 million. This come from the tickets sales, merchandising, sponsorship and tourism. Hotels and restaurants around the circuit also get huge income cause of the F1.

There are also intangible benefits like branding and buzz their country icons, flashing 50 or 60 times on the screen to worldwide audience of 500 million.
For the team who participate in F1, they get huge income also. For example Ferrari Team, in 2005 they get income from sponsor about US$ 308 million. This income exclude from the merchandisers and advertising. Wow, huge income...

Links to this post