Formula One: The road to ruin or [even more] riches?
This report focuses on the Formula One business in order to understand its underlying structure and operating format with a view to demonstrating the complexities involved in running a large-scale and highly scrutinized organization.
Overview of the Formula One business and its deal history.
Company structure diagram including detailed analysis of money flows.
Provides an understanding of key agreements between the various parties involved in the Formula One industry.
Strategic analysis of Formula One governance and market structure.
Reasons To Buy
How is money made in the Formula One industry and where does that money go?
What deals have been made between race teams, competition organizers and regulators?
How could the business be improved and are there further market opportunities?
The Formula One group is able to bring in $1.7bn in commercial rights exploitation and associated revenues.
The legacy premium and bonus payments intended to keep older and prestigious teams in the Championship are deemed by many fans and smaller teams to be entirely disproportional and unfair.
The FIA has managed to obtain a 1% stake in the F1 Group and therefore has an interest in the commercial success of the sport, not just the way it is regulated and conducted.
- Anatomy of F money-making machine
- Complex structure of empire built by Ecclestone reaps rewards of FIA deal
- CVC Capital Partners holds major stake but Ecclestone runs the show
- Ecclestone and family trust still hold sizable combined share in F
- Historic share deals taint integrity of business and add to mystery of the F brand
- Loops of loans invite further speculation and controversy
- Two deals make a billion dollar business
- Commercial rights and Concorde Agreement vital to success
- Formula One World Championship Ltd holds key to commercial rights exploitation
- Concorde Agreement reinforces strength of biggest teams
- F governance risks alienating audiences
- Teams unwilling to compromise in FIA and F Group monopoly
- FIA rule-bending and creation of F strategy group increase dominance of powerful
- Constant rule changes appear ill thought out and divisive in poorly governed system
- Business risks outweighed by lack of competition and barriers to entry
- Spectacle failure, insider success
- Further Reading
- Ask the analyst
- About MarketLine
- List of Tables
- Table 1: Estimated team payments made by FOWC, $m, FY2014
- List of Figures
- Figure 1: The dominant Mercedes race car, 2016
- Figure 2: Estimated Delta Topco Limited group structure and money flows, $m, FY2014
- Figure 3: Bernie Ecclestone, F1 Group Chief Executive Officer