30/06/2005
NEWS STORY
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According to accounts filed by Formula One Administration (FOA) for the year 2003, turnover fell by £45m ($81m), as Michael Schumacher and Ferrari continued to rule the sport.
In one year, turnover fell from £355m ($643m) to £300m ($542m), highlighting the sport's need to break into (lucrative) new territories and also demonstrating how damaging recent events at Indianapolis will prove.
However, despite this, according to an article by Christian Sylt and Caroline Reid for London's Evening Standard, the company saw its profits rise by £17.1m ($31m) to £87m ($158m), following Bernie Ecclestone's decision to shut down its loss-making Digital F1 service.
FOA was late in sending in its accounts for the year, which led to a £250 ($452) fine, however (director) Ecclestone should have been able to pay this himself, thanks to a pay rise which saw his salary treble to £2.2m ($4.1m).
FOA is now owned jointly by three banks - BayernLB, Lehman Brothers and JP Morgan - with the Ecclestone family trust - Bambino Holdings - owning the remaining 25%. Earlier this year, Bambino reached an out-of-court settlement with the three banks, who had sued in order to obtain greater control of the company.
According to the article, FOA is still making interest payments on a $1.4bn bond it took out in 1999, the proceeds of which of which went to Bambino, and which was secured against Formula One's future income. It's understood that the outstanding amount $716m will be cleared by the end of 2006.
The article speculates that another bond issue could be on the way, but this time involving the ten Formula One teams, who, according to Sylt and Reid, are said to be; "contemplating a $900m offering to help finance the purchase of Ecclestone's and the banks' stakes in the sport".
Which, again, puts recent events in the United States in a new light.