F1 In Profit Boost Despite Rumours
A new report into the finances of Formula One motor racing has revealed huge profits for the sport’s owners – with net profits made since the private equity firm CVC took over in 2006 up to over £750m.
The Formula Money report indicates that F1’s holding company made net profits in 2010 of £85m after costs, which included paying race teams over £400m.
CVC owns 63.4% of F1’s Jersey-based parent company Delta Topco, and Formula Money estimates that it made £54m from the sport last year, with the remaining £30m in profits split between investment banks and individuals who own the rest of Delta Topco.
CVC bought majority control of F1 from Bernie Ecclestone’s family trusts and a group of investment banks, although the F1 boss remains the sport’s chief executive and a large shareholder in Delta Topco.
There has been a series of reports recently linking Rupert Murdoch’s News Corporation as a possible bidder for F1’s commercial rights.
New Corp was rumoured to have sounded out a number of potential bid partners, most recently Exor, the Agnelli family’s investment vehicle, which indirectly owns Ferrari, F1’s star team.
Nick Clarry, CVC’s managing director, added: ‘The shareholders’ agreement gives us control in any event, as they cannot sell without first offering the shares to us and we must approve all and any transfers’.
