The owners of F1 have completed a refinancing that has "paved the way for a large dividend payout" to the company's shareholders, according to Christian Sylt for the London TELEGRAPH. Last year, F1's bank borrowings accelerated by $2B, half of which went to investors. CVC, the private equity firm, received $350M in line with its 35% stake. The payout followed a "strong year for the sport, with pre-tax profits up more than a third" from $284.6M to $394.1M, and revenue "clocking up" a 3.2% rise to a record $1.8B, according to its latest accounts. The "improved financial performance" came after F1 CEO Bernie Ecclestone established new races in Russia and Austria. The new races replaced grands prix in India and South Korea and boosted F1's four core revenue streams -- race hosting fees, broadcasting fees, corporate hospitality and advertising and sponsorship. Together Austria and Russia pay an estimated $62M in annual hosting fees, outstripping the $46M paid by India and South Korea. The jump in profits and sales is "likely to help improve F1's appeal to suitors," including Qatar's sovereign wealth fund and RSE Ventures, owner of the NFL Miami Dolphins. The duo is "understood to have made an approach to buy a controlling stake this year." Ecclestone's strategy will see F1 return to Mexico in November and "the addition of a grand prix in oil-rich Azerbaijan next year to give a record 21 races." Together, fees from race hosting and broadcasting made up $1.2B of F1's total revenue, with a further $161M from TV production as well as travel and freight services to the teams (TELEGRAPH, 9/8).
