F1 profits went up 30% last year, report says

Formula One’s operating profits have gone up 30 percent last year to reach $329.9m (£252m) last year on the back of a low pound against the US dollar, according to The Telegraph.

Despite F1 being headquartered in the UK, the reports quotes documents that read “most payments we receive from our counterparties under our commercial contracts are denominated in US dollars.”

Conversely, the article adds that many of F1’s expenditures – such as staff wages – are paid in pounds, which means “it gets more for the dollars it receives” with costs down by $77.5m [£59m] and revenue at $1.7bn [£1.3bn].

These figures make F1 all the more enticing for future investors, as the pound has continued to slump in 2016 in the wake of the Brexit vote.

A recent report in Bloomberg describes F1 as “a spectacularly profitable deal” for current owners CVC Capital Partners, which have been controlling the sport for 10 years.

However, the private equity firm’s willingness to sell its 35% stake has been well documented, with Sky News reporting last week that John Malone’s company Liberty Media Corporation was about to launch a £6.4bn bid for the shares.

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