The revenue from Formula One's commercial rights will double across the next five years, according to a report from the industry monitor Formula Money.
New research for the latest Formula Money annual report predicts that revenues will increase at a rate of 12.7% a year. Revenues are expected to reach $1,789m (£1.089bn) this year before passing the $2bn (£1.217bn) mark for the first time in 2012, and reaching $3,253m (£2bn) in 2016.
Race fees are highlighted as a key area for expansion, as they generated an estimated $568m (£346m) in 2010. The report states that most race contracts include an annual escalator and upcoming races in new markets such as Russia and India are expected to pay above the average rate, predicting that the highest race hosting fee, which currently stands at $50m (£30m), will be more than $100m (£60m) by the end of the decade.
It's not just the commercial rights holders who will benefit, with the teams also set to reap the rewards. Based on the projected figures the 2016 total prize fund will come to $1,575m (£960m), with the winner of the constructors' championship receiving $222m (£135m). That amount is more than the entire annual budget of seven of the current 12 teams, and is a significant increase on the $87m (£53m) that Red Bull Racing received for winning the championship in 2010.
Formula Money estimates that prize money could overtake sponsorship as the biggest source of revenue for the teams, despite signs of sponsorship levels recovering. Sponsorship fell for the fourth time in five years to $802m (£488m) in 2010, but at the start of this season the total amount of team sponsorship had already hit $887m (£540m), an increase of 10% on last year.
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