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THE MONEY GO ROUND
LIFE IN THE RICH LANE
by Nicholas Frankl
The Sunday Times reports that Formula One supremo Bernie Ecclestone is the 55th richest man in England and heads a notable list of motor racing's most successful businessmen. Bernie, as he is affectionately known throughout the motor racing fraternity, has racked up a personal fortune estimated to be at least $250 through his TV and promotional activities.
The son of a trawler skipper, Ecclestone started in used cars and auctions before branching into F1 with the Brabham team which he brought in 1970 and went on to win two World Championships with. After the FIA/drivers strikes he founded the Formula One Constructors Association (FOCA) and began the transformation of a sport that today rates as the second most popular in the world after Football. He is credited with the exploitation of the mobile bill-board system of racing and the multi-million pound marketing machine that is todays Grand Prix. His hold is so strong, that practically nothing happens at the circus without his knowledge or permission, but despite ruling with what some might describe as an iron fist you won't find many willing to criticize his astonishing success.
With an average salary of $11m a year since 1989 and the all time British record of
$29.7m in 1993, Bernie can afford to enjoy the trappings. Owning not one but two private jets, a Lear and a Falcon 20, and numerous houses around the world, including his nine-story London headquarters overlooking Hyde Park, brought form the Saudi arms dealer Adnan Khashoggi.
What's good for Formula One's ratings is good for Bernie. When the show needed spicing up a bit, refuelling was controversially re-introduced, and when attentions waned along came the Wunderboy and the gentile Englishman - who just couldn't share the same piece of track without bumping into one another. Now, to spruce up the dead US tv market, Jaques Villeneuve has been drafted into Williams, a deal openly secured by the man at the top.
No one, however could accuse him of not spreading the wealth. Ron Dennis started as a mechanic and slowly worked his way up the ladder through the lower formula's before buying the ailing McLaren team in 1982 with partner Mansour Oijeh owner of the TAG group . Since then, helped largely by Phillip Morris' tobacco millions, McLaren has achieved phenomenal results, winning four straight World Championships between 1988 and 1991, 15 out of a possible 16 victories in '88 and tallying a total of 104 Grand Prix wins, second only to Ferrari with 105.
Since '93 the victories have dried up and there is speculation that so might the Marlboro money. But, with the development of McLaren Cars, Marketing services and Electronics, the profits have continued to roll in, rising to $11.4m in 1994. The Business is valued at around $150m, Dennis's stake at $60m.
Frank Williams was once regarded as the Forti team of Formula One. That was back in 1973, and despite some serious set-backs, both personally and professionally, such as the deaths of Piers Courage in 1970 and Ayrton Senna in 1994, plus a car accident that nearly killed him and resulted in him being confined to a wheelchair, almost totally paralysed, for the last 10 years. Williams is now a dominant force in both F1, winning the Constructors Championship seven times, and more recently in Touring Cars. He owns 70% of Williams Grand Prix Engineering and on sales of $36m in 1994, the business is currently valued at $70m.
TWR Group may not be familiar to you, but if you weren't aware of it pay attention. Lead by a fiery Scotsmans and ex-racer Tom Walkinshaw, TWR has just bought the Arrows F1 team and threatens to break into the big four within two years. Tom, who made most of his money building and racing Jaguars and assorted sports cars (including the ill-fated XJ220) runs an engineering company that also builds the Volvo touring cars and was until two weeks ago in charge of Ligier. A fine golfer and work-a-holic, Tom knows all the tricks in the book and was once caught racing a Jaguar XJ15 which had been deliberately built one size smaller than the rest of the one make series. His fortune is estimated at $40 m, but don't expect it to stay down there for too long.
Last, but by no means least, is Mr. Mansell. In possibly his lowest placed finish ever, Nigel is the joint 467th richest man in England with a tidy $35m. If you're reading this site I would hope that you will be well acquainted with the wining walrus, who, despite complaining bitterly throughout his career, was bestowed the more significant honour of driving like "a crazy man" by the greatest of the lot, the late Ayrton Senna.
Through his motor racing skills and exquisite eye for a deal, like getting $1m a race for a three race deal in '94 and being paid $3m not to drive for Williams in '95, plus an additional $5m by McLaren to drive a car he couldn't fit into, "Our Nige" or Il Lione as the Italians named him has amassed enough of a personal fortune to enable him to pursue his other true love. Golf.
Now retired, he's spending $6m on his Devon golfing complex, where true to form he recently won the annual tournament......and kept his own trophy.
With Tv audiences rising and the prospect of what one hopes to be a truly great season (especially if someone actually passes a Williams), the men listed above and many like them littering the paddock, who didn't make the $35m threshold, will be reaping the rewards and fueling their briefcases, after yet another year playing at the biggest circus of them all.
