F1 turnover “to double” in next five years |
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Revenues from Formula One’s commercial rights will reach more than US$3 billion per year by 2016, according to new research from F1 industry monitor Formula Money.
According to the new edition of the annual Formula Money report, collective turnover will rocket by 105% from total revenues of $1.587 billion in 2010. Turnover for the Formula One Group is expected to rise at a rate of 12.7% per year, registering $1.789 billion this year before surpassing the $2 billion mark in 2012, before reaching $3.253 billion in five years’ time. The study added that hosting fees, which generated an estimated $568 million in 2010, will be a key source for increasing turnover, with most race contracts including an annual escalator. Formula Money estimated that the highest race hosting fee, which currently stands at $50 million, will be more than $100 million by the end of the decade. The report also predicted that in 2016 the total prize fund will have hit $1.575 billion, earning $222 million for the winning team in the constructors’ championship. Red Bull Racing received $87 million for winning the championship in 2010. Formula Money calculated that total team sponsorship and supplier deals came to $802 million in 2010 as they fell for the fourth time in five years. However, early indications are that the sponsorship market is improving in 2011 and at the start of the current season the teams’ sponsorship revenues had already reached $887 million, an increase of more than 10% on 2010. |
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