Williams Formula One team has reported more than $50 million in losses for last year’s season despite finishing third in the 2014 constructor’s standing.The British team however, undeterred by the losses, distributed their 600 odd staff a total of $3 million in bonus for the good performance last year.
F1 Williams report $50 million loss in 2014
This is in complete contrast to 2013, where the team enjoyed a profit of about $15 million, even after a poor performance in that season finishing at ninth, the lowest in their history.This just gives us a glimpse of how harsh the economics of Formula One as a sport has become.
The team, which is listed on the Frankfurt Stock Exchange, enjoyed a surge in performance but took a beating financially due to lower revenues and higher costs. The team saw a drop in revenue from around $200 million in 2013 to around $120 million in 2014.
Williams chief Mike O’Driscoll said, “In 2014, we made very good progress, investing significantly in people, facilities and technology which we believe will provide a solid foundation for the future. Mid way through 2013 we set out an ambitious turnaround strategy to reinvigorate the Formula One team, create a strong profitable advanced engineering business and divest non-core activities.”
The team said that the results were as expected and in line with their anticipations. The year of 2014 was a year of transition for the team and they expect the 2015 season to be much more rewarding in terms of driver, constructor standings and economic gains. The increased prize money for finishing third last year will be received by the team, in 2015. The team’s economic position doesn’t look great on paper but the team suggests that they are in great form and that the struggles of previous years will show good performance in this season.
This season, Williams have been competitive. Despite not being able to compete with the Mercedes, they have been racing with the Ferraris and giving them a good fight in the qualifying and matching their race pace as well.
Tags: F1, Ferrari, Formula One, Mercedes, Motorsport, Motorsports, Sport, Sports, Williams
