Formula One Profits Fell Last Year Due To Accelerating Payments Under New Deal
F1 profits fell by $137M to $286M on an underlying basis last year, "driven by accelerating payments under a new deal with the sport’s 11 teams," according to Christian Sylt for the London TELEGRAPH. The teams’ prize money increased 6.1% in '13 to a record $798M, "making it the single biggest cost for F1’s Luxembourg-based parent Delta 2." Further pressure was put on F1’s bottom line by a new agreement with motorsports governing body FIA "that upped the annual fee it receives four-fold" to an estimated $40M. There "was also less money coming in to pay it as the cancellation of a Grand Prix in Spain led to the drop in Delta 2’s revenue." F1 paid $459M of non-cash inter-company loans, giving it a pre-tax loss of $282M on turnover which fell 4.3% to $1.3B (TELEGRAPH, 4/21).