This has been brought up in more than one thread lately, so I figured it would make for some good discussion.
As it seems, everyone has to pay to play in F1. Manufacturers spend, teams spend, the tire supplier spends, the tracks spend, sponsors spend, spectators spend, TV channels spend... Who's making money?
There is more than one way for money to flow and most parties still be successful. Here is my opinion of ways it should be.
Sponsors spend money or donate services or product to get an indirect profit.
Television networks should pay to televise a race, just as they do everything else they show. Money from commercials, other advertising, and subscription services (cable, dish, internet etc.) cover them.
The fans pay a fee at the gate and buy other products.
The management company should be paying others for their respective services. This company could be like a club (made up of the teams) or it's own money making entity. The management company would employ the workers and stewards.
Teams (drivers, crew, suppliers etc) should be paid for the show they are putting on. The amount of pay should be related to their performance, but all teams should receive some of the winnings. It should be able to generate a profit for all teams involved.
Tire supplier(s) should either sell their tires to the team or the track, or be paid for their services at an agreed price. With their name plastered everywhere, they are obviously getting some advertising out of it, so a discounted price on their product or services would be fair. It should be weighed on the "value" of their sponsorship. If having your name plastered all over F1 has a worth of millions of dollars, then I guess that is fair, but they should still be paid for their services, not just paying to be a part of it.
A promoter should receive a small percentage of the revenue generated for it's service of promoting the sport.
Tracks should be paid to use their facility, either a small amount to guarantee some cash flow, while the track keeps all of the money from ticket sales, or a larger lump sum, while the management company receives the money from the ticket sales.
I would like to hear others opinions, and if anyone has any knowledge of how it works now (beyond, all money funneling in the direction of the FOM), please fill us in.