Formula One: The road to ruin or [even more] riches?

This report focuses on the Formula One business in order to understand its underlying structure and operating format with a view to demonstrating the complexities involved in running a large-scale and highly scrutinized organization.

Scope

Overview of the Formula One business and its deal history.

Company structure diagram including detailed analysis of money flows.

Provides an understanding of key agreements between the various parties involved in the Formula One industry.

Strategic analysis of Formula One governance and market structure.

Reasons to buy

How is money made in the Formula One industry and where does that money go?

What deals have been made between race teams, competition organizers and regulators?

How could the business be improved and are there further market opportunities?

Companies mentioned

None

Table of Contents

Overview

Catalyst

Summary

Anatomy of F money-making machine

Complex structure of empire built by Ecclestone reaps rewards of FIA deal

CVC Capital Partners holds major stake but Ecclestone runs the show

Ecclestone and family trust still hold sizable combined share in F

Historic share deals taint integrity of business and add to mystery of the F brand

Loops of loans invite further speculation and controversy

Two deals make a billion dollar business

Commercial rights and Concorde Agreement vital to success

Formula One World Championship Ltd holds key to commercial rights exploitation

Concorde Agreement reinforces strength of biggest teams

F governance risks alienating audiences

Teams unwilling to compromise in FIA and F Group monopoly

FIA rule-bending and creation of F strategy group increase dominance of powerful

Constant rule changes appear ill thought out and divisive in poorly governed system

Business risks outweighed by lack of competition and barriers to entry

Conclusions

Spectacle failure, insider success

Appendix

Sources

Further Reading

Ask the analyst

About MarketLine

Disclaimer

List of Tables

Table 1: Estimated team payments made by FOWC, $m, FY2014

List of Figures

Figure 1: The dominant Mercedes race car, 2016

Figure 2: Estimated Delta Topco Limited group structure and money flows, $m, FY2014

Figure 3: Bernie Ecclestone, F1 Group Chief Executive Officer

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