The eight teams that have announced their plan to set up an F1 breakaway series will take with them more than US$2.2 billion of annual investment into the sport, according to research from a leading industry monitor.
The rebel teams – Ferrari, McLaren Mercedes, Toyota, Renault, BMW, Red Bull Racing, Toro Rosso and Brawn GP – have revealed that they will begin preparations for a breakaway series after negotiations broke down with the FIA over cost-cutting regulations for 2010.
Formulamoney calculates that the eight FOTA teams bring US$2.2 billion annually to the sport in team owner contributions, sponsorship and supplier deals – representing 47% of F1’s total revenue generation in 2008.
This figure is comprised of US$1.5 billion in team owner contributions, US$667 million in sponsorship revenues and US$54 million in supplier deals.
Formulamoney says F1 is likely to suffer immediately from the announcement of the breakaway plans because the uncertain situation means fans will be less likely to book tickets in advance for grands prix next year.
That could make it more difficult for race promoters to pay F1’s hosting fees, which average US$23.7 million per race.
Television companies with F1 contracts are also likely to want to renegotiate their deals in light of the sport losing eight of its top names.
These teams also spend vast sums on corporate hospitality and on trackside advertising so their departure will further impact F1’s revenue stream.
F1 requires around US$550 million in annual revenues to meet its costs and liabilities so it needs to bring in at least this sum to remain solvent.