A new investigation has revealed that six of Formula One’s ten teams are state-funded as the British government has handed $146.2 million (£112.2 million) of public money to them since 2012. This has led to F1 team costs accelerating as the more they invest in their cars, the greater their chance of success. It has dented their bottom lines as profit isn’t the yardstick of success for F1 teams as it is for most businesses. F1 teams need the staff to run their operations and need to do the research and development to compete. It raced into the spotlight when British television broadcaster ITV News revealed that in 2015 F1 paid $6.8 million (£5.2 million) of corporation tax on Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of $485.1 million (£372.3 million).

Source: Forbes September 29, 2018 19:30 UTC