F1 profits plummet

Formula One’s commercial profits have fallen to just $6 million since the sport's commercial rights were acquired by the private equity company, CVC, according to UK press reports.

The Daily Telegraph said that profits in Alpha D2, the UK company in which CVC has a majority stake, have slumped from $312.7m due to ‘debt payments totaling $220m to service the $2.5bn secured by CVC to finance its acquisition’.

The profit figures are revealed in Alpha D2's latest accounts. Alpha D2's accounts cover a nine-month period from late March until the end of last year, which included 16 of the 18 F1 races held in 2006.

CVC acquired Slec, the ultimate parent of F1's commercial rights holding company, Formula One Administration, in 2005.