The latest research has shown that revenue for the queen motorsport competition – Formula One – has totaled $16.2 billion over the past decade and a half, managing to outshine its closest rival, the FIFA world football (soccer) governing body.
And since we’re talking about the past 15 years, the recent corruption scandal has nothing to do with the football (soccer) authority being outstripped by the world of motorsport – even if most humans on the face of the Earth would tell you the former – not the latter – is the most appreciated sports competition ever. The window of comparison does draw some parallels to the embattled former president Sepp Blatter – since he was appointed in office back in 1998. He was just re-elected for another four-year term back Friday last week, but he decided to resign under the pressure of the numerous accusations of corruption against 14 of its senior executives. Even as much ink was bled about Blatter’s track record with FIFA finances, the truth is Formula One and its chief executive Bernie Ecclestone are well ahead (though accusations have surrounded both men).
The finances of Formula One are well embroiled into a corporate scheme, with Delta Topco being the major parent company – with the private equity firm CVC owning 35 percent of it, followed by American asset management firm Waddell & Reed, with 20.9 percent and third comes the estate of bankrupt investment bank Lehman Brothers with 12.3 percent. Ecclestone owns 5.3 percent through Bambino Holdings, the Ecclestone family trust. Topco itself draws revenue from six different places: sales of vending and concession stands at tracks; trackside advertising at each race and sponsorship of the series; F1’s corporate hospitality outfit the Paddock Club; the junior series GP2; and the two biggest sources of revenue – taxing the hosting and the broadcasting of races.