They lose more money than they make. Also the money they do make comes from manufacturing engines and advertising the ferrari brand which isn't really a sport. Not made their money through winning like Manchester United have.
That statement isn't true that all, Schumacher made over a £1 billion in wages, prize money and sponsorship deals in his Ferrari days. Both Minardi (Now* Scuderia Toro Rosso) and Eddie Jordan have revealed the facts of prize money at the end of each season in Formula 1. All the big teams keep their winnings a secret as they use that money for funding of the future seasons (with sponsorship money) as well as bonuses for their teams and their drivers. Minardi received £8 million for finishing last every championship year, Jordan received over £30 million in their* best years in the midfield and similar prize funds as Minardi in the bottom 3. Scuderia Ferrari was rumoured to have made over £300 million per season in prize money during the winning championship season and beyond until the rule changes in 2009. That's nearly 10 years of winning over £300 million a year, so over £3 billion. Now with the budget caps in place they'll be spending less than they were per 2009 and the winning margin will be higher.
"Also the money they do make comes from manufacturing engines and advertising the ferrari brand which isn't really a sport."
I call it merchandise, All football clubs do what Ferrari do but with less power, history or passion. Is selling football shirts sport?
Ferrari sells around 2,100 cars a year now so that does contribution to the £1 Billion they make each year but that only totals to 3/4 of their revenue, the rest must* come for sponsorship deals, branding and winnings. To be honest though Ferrari use as much money to reinvest in their F1 team as possible so the profit will be probably a 3rd of their revenue. Ferrari don't have debts like most of the premier league and major clubs in Europe.
"Not made their money through winning like Manchester United have."
As explained above. Manchester United are half a billion in debt, Ferrari don't have debt.
No offence but it is just conjecture. I'm sure Forbes know what they are doing and have knowledge of accounts and history relating to firms. They have been doing it for nearly 100 years. If Ferrari don't show figures then surely there must be something that's not right.
In terms of the prize money Ferrari has received in the last decade, yes it is guess work for sure, nobody really knows that besides the parent company (FIAT), the board members at Ferrari and FOM. With that said people inside the sport have rumoured those numbers. Remember Ferrari is the only blue chip company in Formula 1 and have had a dominating say on how the sport has run since the early years. Like Bernie said, "Without Ferrari F1 is nothing."
Regarding Forbes, they won't know everything as Ferrari don't have to state everything. Ferrari is a "joint-stock company" or know in Italy as Società per Azioni. They have private corporation entities as well as PLC investors. Ferrari is 90% owned by FIAT which is a S.p.A. as well with 10% in PLC.
Scuderia Ferrari isn't a S.p.A. it's part owned by FIAT (85%), part owned by Mubadala Development Company (5%)(Investment company owned by the Emirate of Abu Dhabi.) and Enzo's last living Son Piero Ferrari (10%). Scuderia Ferrari doesn't have to declare it's funding/earnings and will never have to declare it's funding/earnings until they received money from public investors.
I've been watching F1 now for nearly 2 decades and it's the most unique sport in the world, not always the most exciting but the most unique in every way including how teams operate. Ferrari have been pushing for 3 cars for nearly a decade now or 2 teams running under the same name. That doesn't scream "They lose more money than they make.", that screams they make enough to want more.
Don't get me wrong I love F1 too! I have been watching it for about 10 years now (dad got me into it) I think F1 is an R&D project for Ferrari where new technologies and techniques are implemented to the retail cars. I just can't see it as a viable business alone, I doubt it would survive without them being car makers. What I will say is, I don't know and that I trust Forbes information.
I'd agree Ferrari and other engine manufacturers use F1 for R&D purposes for retail cars but Ferrari also do it because of* their history. Look at the late 70's through to the 1999 when Ferrari won nothing major, that's the* passion of the* company. Most would of left for good but Ferrari didn't. It wouldn't be a viable business without winning or having great backing, Ferrari have that though because of their history. Ferrari don't need F1 but F1 needs Ferrari. I'd agree in a sense as well that Ferrari wouldn't survive a long time* on just name sake and backers. Ferrari have that passion, prestige and fan base. The car business helps support and promote Ferrari international and the fan base follows because of the F1 team. I guess it's a perfect marriage which McLaren is trying to cash in on now with road cars with their fan base.
Nice talking to you matey, nice to see another F1 fan on here and N4G. :D
City won't even make it to the top four this time! Liverpool will be up there I think.