Money and Formula 1: let's talk cash!

The object of many fantasies, money is the primary fuel of F1, both in terms of expenses and revenues. Before we resume, let's reset the counters to have clear ideas on the subject.

Published on 20/08/2024 à 09:00

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Money and Formula 1: let's talk cash!

© DR (Image generated by an AI)

Money doesn't grow on trees. So why would this be the case? Formula 1 ? This sport whose reputation is said to be the most expensive in the world, often singled out for being bling-bling and whose dollars flow as freely as champagne on a podium... Pure fantasy or reality? Certainly well paid compared to ordinary mortals, are pilots that much compared to their counterparts in other disciplines? Do the teams spend sums devoid of any responsibility? These are the questions in particular that we asked ourselves. So let's talk money, let's talk cash, without taboo or moralizing posture.

One of the pioneers to have grasped the financial potential of Formula 1 was obviously Bernie Ecclestone. His entrepreneurial journey began modestly with running a motorcycle dealership in England, before moving into managing Formula 1 drivers in the 1950s and 1960s. However, his financial rise truly took off when he became the owner of the Brabham stable in 1971.

The turning point for his fortunes came in the 1970s, when he played a key role in the restructuring of Formula 1's commercial rights. He managed to negotiate television broadcasting rights on behalf of the teams, allowing him to control a large part of the income generated by the discipline. In 1974, he created the Formula One Constructors Association (FOCA), strengthening his control over

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Robert Plutier

20/08/2024 at 09:41 a.m.

And if Formula 1 was a means of tax evasion for some. I have a company X under Luxembourg law which is a 10% shareholder in a Formula 1 team, after a few months a Singapore company which also belongs to company ! I am the boss of a large group and want to go to Las Vegas or elsewhere at my company's expense with my family. It is enough to be a sponsor with my group of a Formula 10 team which will be happy to invite me as a VIP with my family for a week to this grand prix where I will attend the race on Sunday. This completely legally!

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