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Money, Money, Money - F1 & Liberty pile on the profits from 23 season

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John S:
Not sure Las Vegas added that much to record income, in fact it may really have made a loss if building & set up costs are applied properly, but Liberty still bigging it up.  :swoon:
Most of us though can take it or leave it - Las Vegas race that is. ;)

https://f1i.com/news/500864-formula-1-revenue-surges-in-2023-boosted-by-las-vegas-gp.html?_ga=2.152395709.509608736.1709135055-1748048233.1697908568

Jericoke:
They're using accounting words.  'Revenue' just means how much money they took in, not factoring money out.  If I win a million dollars in the lottery and buy a 2 million dollar home (a modest fixer upper in Toronto), then my revenue is still 1 million dollars.

The next trick is 'operating profit', which means the amount of money they made from operations (i.e., television fees, track fees, licensing deals) less the direct costs (paying people who make TV contracts, collect track fees and enforce licensing deals).  It ignores their capital costs, any non operational write downs.

No where are they mentioning 'net profit'.

However, as a business they're allowed to make investments that cause a short term loss (i.e., building out the Las Vegas infrastructure) with the promise of long term profits.

It's all very complicated compared with the simple problems like designing a race car that is 1 tenth of a second faster than any other car over 5 km.

cosworth151:
One of the oldest rules of accounting is "Figures don't lie but liars can figure." How many times in recent years have major businesses post huge profits right up to the day they collapsed?

lkjohnson1950:
Must be doing something right, rumors are circulating that Liberty wants to buy Moto GP now.

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