| The funding of Formula 1 is a mystery for
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| | Formula One is the name of the business
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| many fans and even those inside the
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| | behind the sport of Formula 1; it is
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| sport's inner circles have trouble
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| | these businessmen and financiers that
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| understanding the complexities. What is
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| | control how each race is funded and which
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| generally known is that funding for
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| | sponsors are given preferential
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| Formula 1 consists of huge sponsorship,
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| | treatment. They also decide how much to
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| television coverage and merchandise
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| | 'top up' F1 teams' merchandise and
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| sales. The merchandise sales are somewhat
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| | sponsorship profits; although this is
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| of an afterthought for sponsors but as
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| | kept a secret and can sometimes cause
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| the popularity of Formula 1 is growing
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| | friction between teams.
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| the merchandise market is also on the
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| | The teams in recent years have not been
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| increase.
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| | making enough money from merchandise and
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| Formula 1 is like many other sports in
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| | sponsorship sales and are beginning to
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| respect to television coverage.
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| | barter for more money from Formula One.
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| Advertisers will pay for slots in the TV
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| | Their argument is that they are the
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| coverage and may even sponsor a specific
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| | entertainers in the sport and so should
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| channel's coverage of an event. This
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| | get a bigger slice of the cake, whether
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| lucrative method brings vast amounts of
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| | this will be successful is doubtable.
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| funding to the organising body of Formula
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| | The drivers are not paid from Formula One
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| 1, the FIA as well as its funding
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| | funds but are employees of the racing
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| company, Formula One. This is important
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| | teams. The astronomical sums that many of
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| as Formula One is in the driving seat of
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| | them receive are incomprehensible to
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| presenting the Formula 1 package to the
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| | those on an average wage, they are
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| public, hence it needs immense funding to
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| | however the best drivers in the world and
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| carry out these roles.
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| | have worked hard to get where they are.
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| The Formula 1 teams support themselves in
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| | The popular drivers such as Lewis
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| a number of ways; the bigger teams will
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| | Hamilton and Fernando Alonso can also
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| be able to court sponsors from some of
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| | sign separate merchandising deals,
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| the biggest names in business, whereas
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| | usually for such luxury items as watches
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| smaller teams must make do with lower
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| | and jewellery.
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| profiles patrons. Teams also produce
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| | The Formula 1 gravy train is driven by
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| their own merchandise ranges to cater for
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| | the big business that is Formula One,
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| the needs of the average fans; once again
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| | while Bernie Ecclestone holds a small
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| the more popular teams obviously make
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| | part of the power in Formula 1; the big
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| more money.
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| | businesses that put up a lot of the
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| Venues in the Formula 1 calendar are
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| | funding ultimately demand respect. The
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| somewhat limited with their advertising
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| | bankers of the Formula One Company
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| freedom. As Formula 1 is ran by a small
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| | balance payment and income to keep
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| number of big business share holders the
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| | Formula 1 at the pinnacle of motor racing
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| venue bosses are pushed out of the
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| | entertainment.
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| commercial decisions. Most venues do not
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| | Seemingly the biggest losers in the
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| have the rights to place their own
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| | Formula 1 world are the venues, as ticket
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| signage and must pay to host the race.
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| | sales are most probably the smallest
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| The majority of money made by venues is
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| | income when compared with the huge TV
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| in the ticket and merchandise sales once
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| | sponsorship and merchandise deals. In
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| fans are inside the track.
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| | what is seen as an exclusive sport for
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| This explains why Formula 1 tickets can
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| | the rich, the average fan can only afford
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| be very expensive, mainly due to venue
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| | his team's merchandise. With high ticket
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| managers trying to recoup some of the 13
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| | prices and the worldwide nature of the
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| million dollars they fork out annually to
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| | sport it is hard for anyone but the super
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| host a race. Hosting a Formula 1 race
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| | rich to follow this sport closely from
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| however is more about the prestige of
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| | the trackside.
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| being a premier world race track.
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