As the so-called Brexit decision became clear, the pound reversed to $1.34 against the dollar, wiping around 10 percent off the value of the currency. It sent markets into free fall, with Japan halting trading for 10 minutes after it fell 1,000 points. However, companies based in Britain but that deal in dollars stand to cash in from this, and F1 is in pole position for such a boon.
F1’s headquarters is in London, but company documents reveal that “most payments we receive from our counterparties under our commercial contracts are denominated in U.S. dollars.” In contrast, many of F1’s costs, such as paying its 352 staff, are in pounds, so as the value of sterling fell it got more for the dollars that it receives.
F1’s latest accounts show that in the year ending Dec. 31, 2014, its revenue came to $1.8 billion, with $1.2 billion of this coming from fees from broadcasters and race hosts. Advertising and sponsorship brings in $254.4 million, with $89.2 million coming from corporate hospitality, and the remaining $209.1 million from miscellaneous sources.
Taking full advantage of the 10 percent fall in sterling could boost F1’s coffers by as much as $180 million, and although the currency has risen from this low, it is expected to remain volatile as the the process of unwinding Britain from the European Union is likely to take several years, Autoweek reports.