Formula 1 being very expensive sport is common knowledge.
Formula 1 being very expensive sport is common knowledge. But what is not known is that most teams are operating under losses. Consider this, Williams F1 Racing, which came in 3rd position as constructors champion in 2014, was reeling under losses of over £31.5 million.
Williams turn profitable as performance on track improves.
The continued impressive showing with another 3rd place finish in 2015 has helped them turn that loss into a £0.2 million profit as the team received £101.5 million last year.
Group chief executive officer Mike O’Driscoll said: “Our 2015 financial results represent a major improvement, with strong revenue growth and positive cash flow. Over the past two years we have completely restructured our business, and our results reflect significant progress, both operationally and financially.
“We were able to continue our resurgence on the track, and balance revenue and expenditure, despite enormous levels of competitive spending in what is sport’s most challenging financial environment.”
He added: “Our Formula 1 team achieved third place in the Constructors’ Championship for the second successive season in 2015, illustrating the clear step change we have made in our racing competitiveness since we began our restructuring.
“Commercial rights income is paid a year in arrears, and these accounts reflect our much improved third place in the 2014 Constructors’ Championship. Our improved performance on the race track has also enhanced our power in the sponsorship market, with major brands such as Unilever, Avanade, BT and Hackett joining the Williams Martini Racing team during the period. We have also seen a number of our partners increase their commitments to the team, which demonstrates the continued strength of our brand.”
The prize money distribution has been skewed in favour of teams which have been in the sport for a long time. Newer teams tend to get lesser prize money even after performing well (Case in point is McLaren which received more money than Williams even after coming in 9th on the constructors table for 2015.)