The FIA is close to completing a successful push for a bigger slice of F1’s financial pie, according to a report by the expert financial source Bloomberg.
Citing ‘two people familiar with the situation’, the media report said the now Jean Todt-led Paris federation is set to boost its coffers to about $40 million per year. That represents a 40 per cent revenue increase, thanks to a new deal with F1’s owner CVC and much higher entry fees paid by successful teams like Red Bull.
Bloomberg said the reigning champion team, for example, will pay $3.3 million simply to enter the 2013 championship, which is ten times what it paid last year. Runners-up Ferrari’s 2013 entry bill is a reported $2.5 million.
“They (the FIA) are harvesting: they’re trying to make as much money as possible while it’s there,” said sports marketing strategy professor Simon Chadwick, of Coventry University.
One of the unnamed sources said the new CVC agreement will benefit the FIA to the tune of about $25 million. But former FIA president Max Mosley – Frenchman Todt’s predecessor – cast doubt on suggestions F1’s governing body is in dire need of more money.
He said the FIA has “always balanced the books”, and kept almost $40 million in the bank.
“The FIA isn’t in financial difficulty,” Mosley insisted.
Source:GMM
