Ferrari Could Receive £100M Boost From Pulling Out Of Formula 1
Ferrari Formula 1 is "on track to get a boost" of around £100M ($132.2M) to its profits if it pulls out of F1, an analysis of its latest filings revealed, according to Christian Sylt for the London INDEPENDENT. Earlier this month, Ferrari Chair Sergio Marchionne "sent shock waves through the sport when he revealed that the Italian marque is considering pulling out after 67 years of racing." Ferrari's contract expires at the end of '20, "when F1 is expected to introduce a new engine and balance the prize money payments to teams." As well as "facing a fall in prize money," Ferrari's costs are "on track to rise" as F1 is due to introduce a new version of its 1.6-litre V6 engine in '21. It will be "cheaper for teams to lease but will cost manufacturers like Ferrari more as they will have to design it." Ferrari is already F1's biggest spender, "though its precise budget is shrouded in secrecy." A detailed analysis of its latest filings "shed light for the first time on how much Ferrari is spending on F1." The single biggest expense is found in the £450.7M ($595.7M) of research and development costs. Like Mercedes, Ferrari is believed to be spending around £80M ($105.7M) on staff. The annual expense for running the team comes to an estimated £55M ($72.7M), bringing Ferrari's total F1 costs to £473M ($625.1M). This does not mean that Ferrari would "bank all of this as a profit if it gave the red light to its F1 project." Ferrari’s F1 costs are "partially offset" by its £160M ($211.5M) of prize money, sponsorship and income from leasing its engines to other teams (INDEPENDENT, 11/17).