Photo: FerrariMILAN—In the world of elite sports car manufacturing, it is an article of faith that victory on the racetrack translates into sales in the showroom. Ferrari is expected to battle Mercedes for the win in the next Formula One stop in Singapore this weekend. Investment bank Jefferies estimates Ferrari’s racing team generated €420 million ($502 million) in revenue last year while booking an operating loss of €100 million. Ferrari generates racing revenue through sponsorships—including all those ads plastered on the race cars—and payouts from the company that organizes the races. The Mercedes racing team, winner of the last three seasons and the current leader, is more forthcoming, disclosing that the team lost £22.3 million ($29.4 million) in 2015.

Source: Wall Street Journal September 11, 2017 18:45 UTC