Formula 1 is currently popular and that is why new teams want to participate, this is an opportunity to increase the entry costs nicely.
If there is an F1 race, we are glued to the tube. And admit, that was different. Certainly because Max Verstappen is racing along, but also because the GPs in general are now more fun to watch. This is not only the case with us, but with many people. The F1 is currently incredibly popular.
Entry costs F1
Well, and with more success comes more money around the corner. F1 CEO Stefano Domenicali says that is why many teams want to continue or participate. Therefore the CEO hints at an increase of entry costs in F1.
And those entry costs are not small, a few years ago they were still 200 million euros. This amount was set (originally) because it was considered the lowest price to buy an existing team. It is also an amount that should discourage ‘frivolous’ participation bids. It should ensure that only companies with a solid financial basis can participate and thus invest in the sport in the long term.
That is already a hefty price tag, but there are many teams eager to participate. There are now rumors that the entry fee to participate will reach 600 million euros!
Rode
Domenicali says times have changed. During a meeting with shareholders, the CEO says that no one could have predicted that the value of this company (ie F1) would rise so much. “Today the situation is completely different, for sure,” concludes the highest boss.
More demand equals more money. Therefore, Domenicali believes that “there is an opportunity in our board to implement the price increase.” What the current teams think of this blimp to increase F1’s entry costs is unknown.
However, they just might not mind. This is to maintain the level of the sport and as long as the money is well spent. This creates robust new teams and the amount is more in line with the value of a current (top) team. Oh yes, more teams that can participate automatically results in less prize money for the current teams. Could just be a reason they want to increase the entry fees.
This article ‘Participating in Formula 1 will cost more money’ first appeared on Autoblog.nl.
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