New research revealed F1 race organizers "have been asked to arrange insurance policies" up to as much as $100M per Grand Prix, according to Christian Sylt for FORBES.
With so many events in different jurisdictions "it would be highly complex for the F1 Group, which controls the series, to arrange insurance alone." It has policies for every Grand Prix but "they are supplemented by coverage arranged by the race organisers" which is typically for between $75M-$100M.
It "puts further pressure on the budget of F1’s race organisers which get fewer financial benefits than the hosts of other major sports events."
All of the revenue from F1’s TV rights, corporate hospitality operation and trackside advertising during the races "goes to the F1 Group." Grand Prix organizers "get the proceeds from ticket sales but this usually barely covers the hosting fees."
The "running costs of the races push the organisers into the red with the deficit often covered by local governments as a Grand Prix drives worldwide promotion for their country" (FORBES, 1/9).
