Formula One’s revenues could double to just under £2 billion ($3.25bn) by 2016 as the sport looks to increase the fees it charges organisers to host a race.
According to a report by Formula Money, the current revenue of just under £1bn ($1.6bn) is set to rapidly increase within a space of just five years as the calendar adds several ‘overpaying’ races such as Russia and India.
It’s thought the city of Sochi in Russia is paying well over the odds to host their race which will join the calendar in 2014. India is also paying more than most, especially the traditional rounds; Britain, Italy, Germany, Belgium and Spain.
The report estimates that the highest annual fee to host a race could top £60m ($100m) by the end of the decade.
This is good news for the teams as they receive 50% of the profits, split dependant on their finishing position within the championship table, the winner, naturally, receives the largest share of the prize money.
Red Bull took home £53m ($87m) in prize money after they secured the contructors’ title in 2010, though that figure could increase to over £135m ($222m) by 2016.
That figure exceeds seven of the 12 teams annual spend on F1. When factoring in sponsorship and on-screen brand value, the sport could become very profitable for the top five or so outfits.
Meanwhile, an improvement in sponsorship revenues has been a feature of 2011, despite a drop in 2010 to £490m ($802m), the teams have recovered some of that loss within the current season, so far, seeing an increase to £540m ($887m).
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