It’s not possible to in a single article convey the mess that is F1 and its financial arrangements, and I’m not feeling inclined to write a book. Yet there are severe storm clouds on the horizon for F1 and it appears the governing body and the teams are oblivious to this.
The Korean Times reports the organisers’ of the F1 race are facing again huge losses. It is claimed they have avoided the contractual 10% escalation in fee from last year but still have a total budget of $67.5m to find.
The national government picks up about $5m and the rest is shouldered by the South Jeolla provincial government. Of course there is the ticket receipts, but the event has not been a raging success with mass crowds attending. The losses the provincial government has had to fund are 2010 $65m and in 2011 $54m. With a contract to 2016, local commentators are not sure they will be able to fulfill this commitment.
