F1 teams get their income from three main sources with the biggest being sponsorship which provides 37% of budgets on average. Next comes prize money at 35% followed by payments from team owners at 19% and other sources making up the remainder.
F1 teams are in particular financial trouble because, unlike most businesses, profit is not their hallmark of success. Instead, the directors of F1 teams run them to break-even (i.e they make neither a profit nor loss) which involves spending whatever is available to them. They do this in pursuit of victory on the premise that it is better to win and make no profit rather than make money and do badly on track.
(Forbes.com)
No comments:
Post a Comment