F1 to lose $100m for Bahrain cancellation
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02-24-2011 | 12:33 PM
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F1 to lose $100m for Bahrain cancellation
F1 to lose $100m for Bahrain cancellation - GPUpdate.net
Formula 1 as a sport is expected to be losing an estimated 100 million dollars (61.7 million pounds) as a result of the Bahrain Grand Prix being cancelled. Although race organisers will not have to pay their fee to Formula One Management (FOM), the sport itself is not insured for such happenings.
The new financial data, collected from F1 trade guide Formula Money, has been compiled after the Sakhir event was called off due to civil unrest in the country.
The biggest loss of revenues is likely to come for the 12 teams, many of which will have to deal with penalty clauses in sponsorship contracts. With some 40 million dollars expected to be lost, Ferrari is the largest loser at 11 million dollars, as it receives more television income than any of its rivals.
Private equity firm CVC – majority shareholders of Formula One Administration (FOA) – will also lose out significantly, with Bernie Ecclestone having waivered the 40 million dollar fee for race organisers but after already paying for tonnes of freight to be dispatched to the Gulf state; the shipment will now be redirected to Australia.
Formula 1 as a sport is expected to be losing an estimated 100 million dollars (61.7 million pounds) as a result of the Bahrain Grand Prix being cancelled. Although race organisers will not have to pay their fee to Formula One Management (FOM), the sport itself is not insured for such happenings.
The new financial data, collected from F1 trade guide Formula Money, has been compiled after the Sakhir event was called off due to civil unrest in the country.
The biggest loss of revenues is likely to come for the 12 teams, many of which will have to deal with penalty clauses in sponsorship contracts. With some 40 million dollars expected to be lost, Ferrari is the largest loser at 11 million dollars, as it receives more television income than any of its rivals.
Private equity firm CVC – majority shareholders of Formula One Administration (FOA) – will also lose out significantly, with Bernie Ecclestone having waivered the 40 million dollar fee for race organisers but after already paying for tonnes of freight to be dispatched to the Gulf state; the shipment will now be redirected to Australia.
