Williams returns to profit
F1 team accounts lag behind on-track performance. Williams, for example, was able to turn a profit in 2016 even though the team had fallen down the pecking order.
The current structure of F1’s commercial rights means that teams only receive payments from FOM the following year, based on their position in the World Championship.
Thus, the payments related to the third place in the 2015 Constructors’ Championship only appeared in Williams’ accounts during the fiscal year that ended in December 2016. As expected last year, the financial results are indeed much better this year.
If Williams had been able to reach this position already in 2014, the team’s revenue has significantly increased, rising from 101.5 million pounds sterling to 116.7 million pounds sterling, a 15% increase year-on-year. A significant portion of this increase is certainly attributable to the contribution of Lance Stroll, who followed an intense development program throughout the year to best prepare for his arrival as a full-time driver.
Nevertheless, one of the points of concern for the team’s management is that a large portion of its revenue comes from only two partners, with one of them, certainly Martini, the team’s title sponsor, accounting for 39% of the group’s total turnover, which amounts to 167 million pounds. A second partner, potentially the Stroll family, contributed 15% of the revenue.
The rate of increase in expenses is much lower, which has allowed the team to achieve a net profit of 9 million pounds, compared to a net loss of 3.8 million last year. It is therefore noteworthy that a private team, which has to cover the cost of its Mercedes engines, is able to generate profits.
Jon Boaden, the interim chief financial officer, remarked: « In Formula 1, we have to compete with teams that have more financial resources than us. To be able to fight at the highest level, it is crucial that every pound invested is turned into maximum possible performance. »
The team is also openly betting on growth prospects for the sport as a whole under the management of the new key shareholder, Liberty Media, as stated by Nick Rose, the chairman of the board: “We are very optimistic about the opportunities ahead in Formula 1 under the leadership of Liberty Media. The strategic plan they have unveiled is exciting, and we are fully committed to doing everything we can to help them in their goal of making the sport even more thrilling for fans in the years to come.”
With the participation of www.racingbusiness.fr
