About VITFAM

Finance and Management Club, VIT Chennai is a student-driven initiative. It acts as a platform that brings enthusiastic and like-minded people together and boosts their interest in Finance and management.

The Club thrives to create the awareness of Finance and Management as a non-core and valuable career opportunity through conducting events, workshops and engaging competitions for the student community.

Thankyou for all your contribution and efforts as a VITFAM member for the tenure 2021-22.

Board 2023-24

Merger Mayhem is an exciting online event that brings together participants to engage in a creative and competitive merger simulation. This event allows participants to showcase their strategic thinking and negotiation skills while exploring the world of corporate mergers.

Merger Mayhem

VITFAM is back with our inaugural event for the AY 2023-2024 – a captivating online webinar: AI in Finance. As we witness the rapid convergence of artificial intelligence and the financial world, we believe it's crucial to explore and the transformative potential that this synergy holds.

Our keynote speaker, Mr. Suveer Jadhav is a luminary in both AI and finance, whose expertise promises to shed light on the most pertinent facets of this transformation. 

AI in Finance

The aim is to find the 'Uncle Pennybags’ among y'all; an event that will rejuvenate your childhood memories and enthral you with its up-to-the-minute rules and the day to showcase your Monopoly skills of making your competitors bankrupt. By purchasing and developing real estate, the player aims to maintain financial stability while driving rivals into bankruptcy. Each game will go on for 30 minutes, and the participant with the maximum assets as well as money wins! The twist is that this game will be played on a life-sized board!

Monopoly

A mind boggling and exciting event that will tease your brain like no other. Deriving inspiration from one of the greatest business reality television series, we present to you an opportunity to be The Shark. Participants will get to make mindful investments under various scenarios and the Shark that makes the wittiest of investments gets to be the winner! Business enthusiasts and Shark Tank lovers be sure to take part in this first ever event that gives you the chance to think like an investor.

Shark Tank - Overturned

A week-long Crypto Trading Contest to showcase your trading skills, learn more about the crypto market, and have a chance to win some exciting prizes like shares in reputed companies! During the contest, participants will be trading cryptocurrencies on the "Roostoo app" and the winner will be determined based on the highest percentage return over the course of the week.This contest will be simulation trading based on real time data and involves no risk at all.

Crypto-Clash

Here we are, with yet another disputable matter. There's no one better than Dr. Santosh Kumar who can address this. Sir aces every field he has touched upon, right from Business, to consultation to mentorship or even counseling. One might fall short for adjectives to describe him. Do hop on to unravel countless certitudes with ample elucidation on the hot potato "Entrepreneurship Vs Employment".

Entrepreneurship VS Employment

VITFAM welcomes you to our extensively fascinating, year-end jamboree so up our sleeves!

The events are based on the nostalgia and inventiveness of a Carnival and with themes such as Entertainment, Music, Qupid, GenZ & PC games, it seems as though the place is just awaiting your presence to come over & experience absolute exuberance across the campus.

We're going to fill in thundering happiness and fun into your day and host a platform for memories, convivial hues & a lively milieu. We hope this Carnival galvanizes you and enthralls you, as we look forward to welcoming all of you to our FAM Kingdom.

QuePid

Fiesta La Entertainment

Console JAM

MeloMania

GenZ

Warm Greetings from VITFAM! ✨

VIT Finance and Management Club is thrilled to present to you, our latest event - a workshop on the topic of "Your Network is your Net-worth". 💰

Let's learn about the significance of networking from Mrs.Vidhya Srinivasan, Chief Marketing Officer at Tristha, with 3 decades of learning in Management and Brand Building Strategy & Implementation, Budgeting, Resourcing, Training and retaining teams in Advertising and PR firms.

Your Network is Your Net-Worth

The VIT Finance and Management Club is back anew, and is enthralled to blazon an online workshop, that is being conducted on ‘Global Business Trends and Opportunities’.

As we inch closer towards embarking on our careers, many students realize their passion to pursue entrepreneurship. It is crucial to learn about real-world experiences and gain exposure from distinguished professionals.

Mr. Mohanta is based in Tokyo, Japan for the last 12 years and has held senior roles in organisations like L&T, Infosys and HCL. With a great knowledge & experience, he is here to enlighten us all about the intricacies of business.

Global Business Trends and Opportunities

Greetings from VITFAM!
A fun event with a finance theme that is packed with educational and entertaining activities is what VITFAM (VIT Finance and Management Club) is excited to bring to you as our most recent event, FUN With FAM.There will be mainly  two enjoyable  events . Participants will be free to select the event they wish to take part in.
Have you got what it takes?
We look forward to your participation in our event, which will undoubtedly offer you a moment you'll never forget!

Fun with FAM

Greetings!
VITFAM heartfully announces the commencement of our event "HEISTERIA", an impending event featuring a plethora of opportunities to apply your wits to the best of your measure and outplay the competing teams. A brains-over-brawns approach which features team coordination and resource management outsmart and outmanoeuvre to get a chance at being the one team which stands above all!

HEISTERIA

We are back with our second IG LIVE on Career Opportunities in MBA and Tips and Tricks to find a job. We have invited Ms. Mehar Sindhu Batra, Founder and CEO MSB VISION. She has mentored over 10,000 professionals to find their right career path.🤩

IG LIVE

VIT Finance and Management Club is excited to present a One of it's kind event Buzz Bid!

Join us for an exciting quiz, but this isn't an ordinary quiz, there's a twist! You'll have to earn the right to answer a question. And the right goes to the person who buys it.

We invite you to test your knowledge and budgeting skills in our latest exciting venture! Do you have what it takes to win?

Buzz Bid

Seeking entrepreneurial advice to advance your career? Look no further.
The VIT Finance and Management club invites you to FOUNDERS TALK, an entrepreneurship-based talk featuring start-up experts discussing their business journey.

Founders Talk

VIT Finance and Management Club is excited to present a webinar on the basic aspects of the Union Budget!

 As the general objective of the Union Budget is to bring about a rapid and balanced economic growth of the country coupled with social justice and equality, it becomes critical to examine it and determine its impacts.

We invite you to gain insights into the different aspects of the Union Budget and its short and long term effects.

The session consists of our guest speaker giving his expert opinion on the matter, followed by an interactive session between the guest and the audience.
 
We can’t wait to see you all at the session!

Union Budget

VIT Finance and Management club is back with an essential budgeting event. You think you’ve got the passion for cars or the best trades? VITFAM brings to you Grand Thrift Auto 2.0 - a stirring event with an exciting cash pool prize of Rs. 1000/-. From budgets and ratings to trading, selling and purchasing exquisite automobiles to see which player can rake up the most points to win the trophy, we have got all you want for an antic day with us! The event is open to all the car and budgeting enthusiasts.

So, you got what it takes? Sign up for Grand Thrift Auto 2.0 Now!

Grand Thrift Auto 2.0

The VIT Finance and Management (VITFAM) Club held an orientation for the new recruits. This orientation provided a general overview of the club, what it stands for and how it was established. An activity session was also planned for the participants.

VITFAM Orientation for Freshers ‘22

Quick brains and quicker answers, VITFAM's Biz-Quiz is here to test your business and finance proficiency. You have a rare chance to see just how well you know your way around these fields. We have rapid fire, picture quizzes, timer quizzes and all the fun stuff lined up, so make sure to get your inner competitiveness fired up.

Biz-Quiz

VITFAM is hosting its very own finance-based debate event, Debato-Matic. In this event, you can flaunt your financial prowess in a heated and fast paced debate with your competitors, supporting your stance on the given topics. We've got experienced judges to moderate our skilled speakers, so its time to think, speak and listen.

Debato-Matic

With clues and hints lined up all along the way, just like a treasure hunt for lost treasures, the ball is in your court to figure out the mastermind schemer and their scheme in the exciting and fast-moving tales we’ve got lined up for you. We've got special prices for the winners as well so it’s time to get fired up.

DeFrauder

Introducing our very own workshop on Personal Finances, we have Sapna Punjabi, an expert in wealth management and a Certified Financial Planner. Join in to ask all your doubts and questions. Don't worry, we've even got certificates lined up to remember this workshop!

Personal Finances

Do you desperately need a break from routine after CAT? VIT Finance and Management Club is back with an event you don't want to miss out on! Gather up your squad or be the lone wolf and step into the VITFAM arena!

Prove yourself with aim, strategy, and teamwork to fight for a part of a cash pool prize worth Rs. 5000! Show us your Valorant and CSGO skills, one up the competition and carry that winning feeling through Diwali.



VITFAM Arena

VIT Finance And Management (VITFAM) Club is back with yet another exciting event and this time we have decided to spread knowledge and awareness about one of the most intriguing topics on every finance enthusiast's mind! Yes, we are talking about Cryptocurrency and Blockchain. Termed as the next big thing to revolutionise the world by many, let's take this opportunity to learn about the same from Mr. Reshi Magada, a cryptocurrency enthusiast and social media influencer with around 100k followers and an impressive amount of knowledge in the financial domain.

CRYPTONIC

VIT Finance and Management Club is back with another exciting and insightful webinar on Technical Analysis and Stock Market History.

The Stock Market is an ambiguous topic and if an individual just starts out then they might be dumbfounded by all the jargon used by professionals. We have found the right person to help us gain a foothold in the world of the stock market with a very important tool Technical Analysis.

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities in price trends and patterns seen on charts.

VIT Finance and Management Club roped in a special speaker Surabhi Kajwadkar, Technical Analyst with an experience of 5 years to talk and educate students about the fundamentals of Technical Analysis.

Stock Trading

VIT Finance and Management club offers an exciting and fun diversion from your daily routine. Have you ever had a revolutionary idea that can take the business world by storm? VITFAM brings to you Lock The Deal- a thrilling entrepreneurial journey with a judging panel of successful and well-known business minds who will guide you and help your idea thrive. The best idea will have the opportunity to win exciting cash prizes of Rs.3000+ and above all, take their idea to the next stage! The event is open to all budding entrepreneurs.

Lock The Deal is an entrepreneurship based open event where contestants will be required to showcase their business idea and the winner will be selected according to judging metrics. For the first round, contestants are expected to submit a report of their business proposal and if qualified to the second round they will be expected to pitch their business model including the investment quote to the judges over online platforms. 

Lock The Deal

VIT Finance and Management Club is back with another exciting and insightful webinar on Personal Finance. 
In the midst of a global pandemic, thinking about your finances is of utmost importance and to get answers to all questions pertaining to personal financing and budgeting, we are coming up with our workshop Let's Talk Money!

Let's talk Money

We are delighted to announce our next event which will surely excite all cricket enthusiasts and also bring out the budgeting expert in all of us! 

So, get ready for FAM Premier League, our very own take on the IPL AUCTION and make your own dream team before IPL resumes! 

FAM Premiere League

VIT Finance and Management Club is back again with yet another exciting and insightful Webinar.
With the corona pandemic compelling us to stay at home, this seems like the best time to explore our career options and progress towards our goals.
Sound familiar? We’re going to address these challenges head-on at our webinar. Actually, let us correct that. We’re not going to address your challenges — the best mind in the industry is going to!

Career in Management

Have you ever been blown away by how enticing the advertisement of a product is? Are there any companies whose unique marketing strategies cannot make you resist to at least check out their brand? Do you think you possess the skills of quick decision making, creativity and a knack for making a business flourish with your marketing ideas?

If your answer is yes then VITFAM is back with ‘Pitch Perfect’ where your best impression sets you apart!
With an exciting judging panel who have had their share of witty marketing in their respective fields, this event is one that you simply cannot miss.

Pitch Perfect

Compete against other real players in the virtual stock market arena, utilize the tools at your disposal, learn and develop your trading skills.

Compete for the top positions and win a part of the prize pool of Rs.5000/-

VITFAM along with TrakInvest has organized a MONTH LONG EVENT. Bring a friend along and trade in a team of two sharing your expertise amongst yourselves or go solo.

VITFAM BAZAA₹

We are back with our next event 𝗩𝗜𝗧𝗙𝗔𝗠 𝗢𝗣𝗘𝗡 : 𝗖𝗵𝗲𝘀𝘀 · 𝗟𝘂𝗱𝗼 · 𝟴 𝗕𝗮𝗹𝗹 𝗣𝗼𝗼𝗹

Play some exciting games and win cash prizes upto Rs. 3000!

𝘾𝙝𝙚𝙨𝙨 𝘵𝘰 𝘮𝘢𝘬𝘦 𝘺𝘰𝘶 𝘣𝘳𝘢𝘪𝘯𝘴𝘵𝘰𝘳𝘮, 𝙇𝙪𝙙𝙤 𝘵𝘰 𝘵𝘦𝘴𝘵 𝘺𝘰𝘶𝘳 𝘭𝘶𝘤𝘬 𝘢𝘯𝘥 𝟴 𝘽𝙖𝙡𝙡 𝙋𝙤𝙤𝙡 𝘵𝘰 𝘤𝘩𝘦𝘤𝘬 𝘺𝘰𝘶𝘳 𝘢𝘤𝘤𝘶𝘳𝘢𝘤𝘺.

"All the world’s a game and all the men and women, merely players."

So, THE GAME IS ON!

VITFAM OPEN

In regards to your future endeavours, VIT Finance and Management Club is back with its next event FIN-TURE, which will be held on the 21st of February, 2021. This time we are here with an interactive session with a guest who is an expert in training finance professionals globally for CFA, FRM, CA, Financial Modelling.

FIN-TURE

Giving future to your Investment, VIT Finance and Management Club is back with its next event FIN-TALK, which will be held on the 13th of February 2021. This time we are here with an interactive live session on some of the most interesting topics under finance, business, stock market, taxation and many more.

Our 6 Experts with varied work experience will guide us with knowledge under their expertise.

FIN-TALK

VIT Finance And Management Club is back with its next event FIN-QUEST, which will be held on the 6th of February, 2021. This time we are here with a very indulging quiz to test your knowledge on some of the most interesting topics in the financial and corporate sector. The best part is that you can win cash prizes by making it through the rounds of this quiz!

So, what are you waiting for? Register through the link given below and stand a chance to win attractive cash prizes by working out the answers of this one-of-a-kind quiz!

FIN-QUEST

We are elated to present VITFAM's new event, Among Us, which is an online multiplayer social deduction game.

Among Us is an online multiplayer social deduction game. With all the players divided into crew mates and imposters, the space-themed setting becomes a game of speed and tact. With imposters lurking to kill you, the goal of the crew mates is to finish all the assigned tasks across the map. On finding a dead comrade or smelling something fishy, a crew mate can also call for a meeting and eject a player they think to be the impostor. If luck smiles on you, you are already the winner but if not, the imposters can still sabotage the perfect setting, tilting the game in their favour. The final winner is decided if all the imposters are eliminated or if the crew mates complete their tasks without being killed. Let’s get our game faces on!

Among Us

We are happy to present the next VITFAM workshop session which will be on Stock Markets.

The Stock Market is an ambiguous topic and if an individual just starts out then they might be dumbfounded by all the jargon used by professionals. We have found the right person to help us gain a foothold in the world of the stock market!

VIT Finance and Management Club roped in a special speaker Madhuchanda Dey, Head of Research MoneyControl and Ex-vice president, Avendus Capital, to talk and educate students about the fundamentals of the stock market.

Let's Talk Stocks

We are elated to present VITFAM's new event, Grand Thrift Auto, which is an Auto-Expo Budgeting event.

Car geek or budgeting expert? All you need to play is a little strategy, quick choices and a pocket full of  enthusiasm in you and your cars.

We'll give you tempting choices with the coolest of cars from the very vintage ones to the recent beasts. Think before you leap onto your favorites as budgeting is a major part of it all!

Grand Thrift Auto

We are happy to present the first VITFAM workshop session which will be on Financial Planning.

Our speaker for the session specializes in business strategy, strategic financial planning, capital markets and mutual funds.
The best part of this workshop? It is absolutely FREE. So, take your first step towards financial planning along with us this Thursday, the 12th of November, 2020 at 11AM.

Financial Planning

VIT Finance and Management held an Orientation Program to inaugurate the club and introduce it to the students and faculties of VIT Chennai. Ms. Rishita Tiwari presented her warm welcome to address the gathering. Following which, Mr. Enock Anand and Mr. Shirsharun Dey spoke about the club and its future goals. Mr. Shuaib Ahmed spoke about the objective and the fore coming events of the club.Dr. Gopinathan N, the faculty coordinator of the club addressed the attendees. Ms. Gauri spoke about the recruitment procedure. Further, there was a brief queries session, the attendees cleared their doubts regarding the club, then Mr. Rohan Nandy presented his Vote of Thanks. There was a small fun session, where everyone interacted and a few intellectual games were conducted.

VITFAM Club Orientation

The VIT Finance and Management Club was launched on Instagram live on the theme “The College Diaries”. VITFAM partnered with various clubs for the launch. The Instagram session comprised members of VITFAM who interacted with club heads and asked questions and tips on their college experience and how the current situation has impacted our lives. We hoped to and had successfully spread a light hearted message to the freshers and the senior VIT Chennai students. We earned knowledge on various details involved in club operations and got insights about how they function. It was an enriching and extremely impactful session where we learnt about practical issues. The session was recorded and has been uploaded on our Instagram account. The clubs involved were VITeach (VIT Chennai), FEC (IIT Guwahati), FYI (VIT Chennai), Voice IT (VIT Chennai), Shrey Arora, Enactus (VIT Chennai), IAESTE LC (MIT Manipal) and Dream Merchants (VIT Vellore).

VITFAM Club Launch

Dr. Gopinathan N.

Shirsharun Dey

Rishita Tiwari

Rohan Nandy

Gauri Madan

CARNIVAL 2022

Team

Finance Fest 2023

VITFAM

Formula One is the highest level of international racing for single-seater open-wheel formula cars sanctioned by the Fédération Internationale de l'Automobile (FIA). Featuring more than 20 Grand Prix across six continents, it is truly a global sport. It is a remarkable sight to watch the fastest cars in the world race against each other.

F1 was bought by Liberty Media in 2016, and it has grown tremendously since then. There is a driver's championship, a constructor's championship (team championship) and hundreds of millions in prize money at stake.

Let's examine the finances that drive this machine.

Chapter 1: Organization Structure of F1 and how they make money

The biggest deal Formula 1 makes is the selling of the broadcasting rights to television channels. Rather than letting individual broadcasters shoot the event on their own, F1 creates its own broadcast to maintain uniformity and quality. The complexity and innovation behind the creation of this broadcast feed is a topic of its own.

Sky Sports pays a lot of money to be the only channel broadcasting in the United Kingdom. From 2019 to 2024, it is reported that Sky Sports paid a whopping 1 billion pounds to exclusively broadcast F1 in the UK. When we consider all of the broadcasters in different countries around the world, the money quickly accumulates.

Formula 1 circuits that feature on the calendar have to pay extreme amounts of money in order for the likes of Lewis Hamilton and Sebastian Vettel to take to the track. On average, an F1 circuit pays roughly £24 million for hosting a Grand Prix and it is their job to get their money back and make a profit.

F1's bank balance is largely financed by sponsors as well. Companies like Heineken, DHL, and Rolex have made deals with the circuits to advertise their brands. Most of this money goes directly into making the sport possible. The F1 show is very expensive to run, from all the logistics to paying the F1 teams.

Chapter 2: How F1 venues (tracks) make money

To host an F1 Grand Prix, a track must be FIA grade 1 certified. To appear on the calendar, tracks must meet this criterion and pay a heavy fee. These fees are usually subsidized by the government since events of this magnitude promote tourism. Ticket sales are the primary source of revenue for the venues. Other revenue sources include hospitality packages, merchandise, etc. There aren't just F1 races at the tracks. There are also other events that add to the revenue.

Tracks like Spa Francorchamps (Belgium), Silverstone (UK), and Monza (Italy) are some of the most well-known circuits on the calendar. But perhaps the most famous, the most coveted race of the year in Monaco, where the streets of the tiny city are converted into a 3.3km race track right by the ocean.

There is also dissatisfaction among fans that there are so many middle eastern races on the calendar at the expense of losing legacy tracks just because they pay a hefty fee to be included. Some of the locations (Saudi Arabia, China etc) are also known for not having the best track record with human rights. Fans do not like that F1 has slogans like “We Race as One” to show support for human rights issues, but then disregard all that for money.

A popular entity's most common source of revenue is sponsorships. Entities can take the form of products, sports, or even people. Obviously, this is the major source of revenue for formula one's speedy and premium sports business. Petronas, HP, DHL, Red Bull are some of the most common brands that we see constantly in these leagues.

In Formula One, teams have partnered with players or teammates, which means each team can host about 25 sponsors. Depending upon their sponsorship category, sponsors pay a fee to sponsor an event. Title sponsorship is the most expensive sponsorship or is considered the most effective of all sponsorships, thus, it has the highest fees. Red Bull has signed a deal with Oracle for 100 million USD a year, and one for 50 million USD a year with Bybit, the cryptocurrency trading platform.

It is the land of technology partners that follows the pitch for sponsorship partners. Throughout a sports event, these are the companies that provide essentials to the teams. Among the examples in this domain are Pirelli, which is the official tyre supplier, and DHL, which is the official logistics partner.

However, these companies are called sponsors and provide the essentials.

In a sporting event, you can often spot corporate partners working on the sidelines. Some notable sponsors include HP Enterprises, Monster Energy, IWC Watches, AMD, and Tommy Hilfiger. Mercedes has 12 sponsors, for instance. There are times when corporate partners are involved with a team event, a product launch, a party, or a charitable event.

As a fan of this sport, you must have seen Lewis clicking with his IWC watch. It may seem that he likes the brand, but the truth is that he has signed a contract with the watchmaker.

FOM payments, often known as Formula One management, are an element of the income distribution and management process. In Formula One management, there are primarily five payment departments.

Every team in the First Division receives 36 million dollars over the course of two seasons. Every team in the division receives the division one money.

The prize money depending on the team's finishing position is the second level of payouts. For example, Mercedes got 61 million dollars for winning the championship, but Williams received just thirteen million dollars for placing last. This seems natural and comfortable, yet there's more to it.

The third division is awarded to the squad that has been around for a long time. It is named for the team that has been around the longest, and the division name is linked with Ferrari. As a result, the section is also known as the Ferrari budget, because they always receive it. The whole amount is $68,000,000.00.

Then there's the constructor's championship prize, which is worth 35 million dollars to Ferrari, Mercedes, Red Bull, and McLaren for winning various "miscellaneous" championships. Finally, there are payments made to Williams ($10 million), Ferrari ($35 million), and Red Bull ($35 million) for being the first to sign the Concord Agreement.

Some teams with a lower budget will often compromise/give up control of one of their seats for monetary gains. This can be in the form of a deal with their engine supplier such that the team supplying the engine gets control over the seat or it can be in the form of a pay driver where the driver directly, or indirectly through a sponsor pays a huge sum of money to race for the team.

Merchandise lends quite well to the earnings of an F1 team. Sales of merchandise are staggering. As the official signature products of an entity, merchandise can be described as the products that represent them. Despite this, we know how fans of a certain brand or sport can go to places to buy merchandise of their favourite athletes.

Ferrari was reported to have generated around £8 million in 2006, according to a report. With the use of a simple website, reaching out to everyone has become much easier. Some tiny teams have tents built specifically for selling these products during racing events. These events draw large crowds, providing a large market for the team's products. Merchandise sales, on the other hand, are exclusively determined by the popularity of teams among supporters, with popularity having a direct correlation to sales income.

Building a car from scratch costs the F1 teams well over 14 million dollars and this only covers the expense of the main components of the average Formula One car as it is very difficult to account for the cost of the engineering and design that goes into the production of these components

The FIA, for example, has set a $15 million limit on the cost of an F1 vehicle engine. The car's engine, however, is more than just the engine block. There are five more auxiliary parts to it. A power unit is a name given to the collection of components. Only the cost of the engine block is revealed by constructors.

The process of research and development is never-ending. Engineers will be working on vehicles for the 2022 Formula 1 season while the cars compete in the 2021 Formula 1 season.

Road automobile manufacturers also do research and development. However, they sell tens of thousands of automobiles of the same model. An F1 team, on the other hand, is limited to just two vehicles every season.

Only one element determines whether the money spent can be recovered: the performance of the team's Formula One vehicle. Even the best drivers will not be able to gain points in a Grand Prix if the car's performance is inadequate.

The FIA has also made revisions to the rules controlling the teams' expenditures. The rules, which were supposed to go into effect in 2021 (before Covid-19), are intended to considerably lower the price of producing an F1 vehicle starting in 2022, in order to help level the playing field amongst manufacturers. All racing team managers joining the Concorde Agreement will assist smaller teams to compete with their wealthier competitors

The new F1 cost cap aims to bring the team’s performance closer together. Previously, the top teams had a budget 4 times higher than the smaller teams. But with the cost cap in place, teams are restricted to an annual budget (145 million USD this year) to level the playing field. This budget does not include the salary of the drivers and the top three management personnel in the team.

An F1 driver's salary is enormous. A rookie can earn up to a million euros per year, while a pro can make up to tens of millions of euros per year. They are the ones steering the ship. Each team has two drivers who must not only drive to the limit at every race but also maintain the brand of the team they represent.

However, no two drivers earn the same salary. Their pay is heavily influenced by bonuses. Performance-based bonuses are often part of drivers' contracts. The sum might be based on a driver winning a race, scoring a certain number of points, or finishing above a certain position in the race. During contract negotiations between the drivers and the teams, there are many politics and mind games at play. In the 'silly season,' the teams invest in either keeping their current driver or obtaining a new driver for the following season, either a rookie or a driver from another team.

According to rumours, Mercedes' Lewis Hamilton was reported to have earned $40 million at the end of the 2021 season, followed by Red Bull's Max Verstappen who was reported to have earned $30 million. It is also speculated that Max’s new contract with Red Bull is worth $55 million a year.

Personal sponsors and advertising deals are other major sources of income for drivers.

Chapter 5: Moves by Liberty Media to improve viewership

Formula One has been one of the most popular sports in the world for decades, with millions of fans making up a diverse and passionate group. This has been aided in recent years by social media, which is a fantastic method for F1 fans to discuss the sport, read the latest news, and interact with drivers.

One of the most dramatic, dynamic, and exciting sports in the world filled with thrill delivers a taste of the action and is extremely shareable, with fans commenting and guessing race winners. It also has simply incredible sights translated to excellent video content as well, whether in the form of highlight reels or fast cuts of footage.

Formula One has a massive presence on Twitter, Instagram, and other social media platforms. It also uploads race highlights and other F1-related content on YouTube for everyone to watch. These attempts strengthen the wide international fanbase and also bring in heaps of new fans.

It makes the sport more accessible to individuals and integrates it into their life in a way that no other method can. Despite its flaws, social media can effectively bring people together and form communities, a reality that Formula One is utilizing to the utmost.

The official Formula One Twitter account, as well as the various other profiles and accounts of its teams and racers, all contribute to the development of a tens of millions-strong international following, as well as a robust network of die-hard fans and casual spectators.

The Netflix series “Drive to Survive” has played a major role in bringing in new fans to the sport. It shows the drama and behind the scenes of each F1 season, although sometimes, the exaggerated version.

Liberty Media has also taken massive steps to popularize F1 in the US. After a recent announcement, there are now three US Grand Prix on the F1 calendar. One of them is a street circuit in Las Vegas, where the cars will drive down the iconic Vegas Strip. The television rights deal for broadcasting in the US is also up for auction and is rumoured to go from the current $5 million a year to $75 million a year.

Chapter 6: Why do teams race in F1 even though there is no direct profit?

The basis of making money through marketing is successful storytelling. The narratives that the sponsor brands create are responsible for selling their product/service. You tend to associate the brands with racing and winning. This leads to the most important step of marketing where the narrative is brought forward in front of probable customers to gain exposure. F1 provides a huge and targeted customer base (fans) for all the brands involved in sponsorships and logistics thereby generating revenue.

F1 spearheaded innovations in safety, sustainability and performance. Innovations like fan-powered cars, active suspension, tuned Mass damper, ground effect pioneer etc., were created for the purpose of F1 racing which was then made available to road cars. Every year, new inventions like these are revealed during the season which keeps the F1 drivers and their fans on their toes.

Apart from monetary compensation, the love and support for the sport is yet another factor that makes F1 stand unwithered. The love for racing, the controversies associated with it, and the rising rivalries prove that F1 is the pinnacle of motorsport.

Finances of F1

A Brief Narrative of the Taliban Insurgency

The story of the Taliban insurgency in Afghanistan has been a hot topic amongst all news circles this year. The limelight was set on all aspects of the nation and its governance across various sectors. But the story doesn’t just start here. Afghanistan was already facing severe obstacles with its economy and development before the collapse of the government. A rapidly worsening security system, a deadly third wave of COVID-19, severe droughts, and a final blow with the Taliban takeover, brought the Afghan economy to its knees. Prices started shooting up since the beginning of 2021. Basic household supplies, food, and fuel started selling at a higher cost. This is due to the Taliban capturing border posts and key transit hubs, thus disrupting supply chains.

Government revenues fell short of budgeted levels throughout 2021. Budget execution faltered in the context of deteriorating security conditions for project implementation. Since mid-July, revenue worsened as the Taliban captured major border crossings. Budget execution started failing due to worsened security conditions. By early August, the Taliban had gained control of customs points of around 57 percent of total customs collections, equivalent to roughly 27 percent of total government revenue collection. This was a decisive blow to the government and its management. Inflation further accelerated following the Taliban takeover, reflecting depreciation, hoarding, and disruptions to international trade. But this was just the start of what seemed to be the rockiest roller coaster ride for the nation of Afghanistan.

In response to the Taliban’s takeover, the US froze $9.5 billion in foreign reserves, Germany halted $300 million in aid, and the International Monetary Fund (IMF) halted $440 million in special drawing rights (SDR) allocation. This foreign help accounted for 40% of Afghanistan's gross domestic product (GDP). To make matters worse, the new government has and will continue to have to navigate a sea of pre-existing sanctions linked to the Taliban that have been in place since 2001.

As a result of lower government revenue, aggregate income will almost certainly fall. Previously, overseas grants covered 75% of government spending. Government services would undoubtedly be curtailed, public employees will be laid off, and wages will decline when this help is rescinded. While illegal mining and opium cultivation provided funding for the Taliban's struggle, these sources of cash are insufficient to run a fully functional administration. The new Taliban government must swiftly identify additional financial sources to avoid the problem.

How the Taliban restricted the Afghan governments control over Finances by taking physical control of the supply points

Taliban strategically took control over key supply points in Afghanistan, thereby increasing its stronghold over the country and decreasing the Afghan government’s stronghold over the economy.

In July, the Taliban took control of the main border crossing with Pakistan in southern Kandahar. It also took control over one of the main crossings with Iran where food and oil enter the country. The Afghanistan Chamber of Commerce and Industry said the Taliban had taken control over seven dry ports in total.

Afghan forces protecting the dry ports put up little resistance. In most instances, the Afghan security forces and customs officials abandoned their posts and fled across the border.

The Afghan government said that the fall of these key dry ports had disrupted trade and was negatively impacting the economy. The companies involved with trade and commerce in Afghanistan also raised concerns about now having to pay taxes to the Afghan government as well as the Taliban. This resulted in higher prices and a lower volume of trade.

The Taliban also took over cities across Afghanistan. This meant that the government was no longer receiving money from these cities. Any key points of trade inside the city would also come under their control.

The Taliban are thought to have made tens of millions of dollars annually from taxing truckers supplying international forces stationed in various parts of the country. They also taxed development and infrastructure projects - including roads, schools, and clinics.

World's financial support before and after the Taliban came to power

By the end of August 2021, the Taliban had taken control of the most influential cities in Afghanistan, including its capital Kabul. The group’s sudden attack occurred as a reaction to the retrieval of US troops from Afghanistan. Most of the economic impact before the takeover was through state security. (update)

Similar to the previous Afghan government, the Taliban will also be facing a loss of revenue because of the troops’ withdrawal. Moreover, the presence of powerful tyrants and discontented opposition also means that the avoided and vulnerable Afghan administration is facing anarchy. This indicates that the Afghan governments’ resources, revenues, and power would fiercely be split amongst multiple tyrants. Previously, the Taliban made $100 million through their drug trade, while the Afghan government made approximately $3 billion through their trade. The government also made a return of a billion dollars through their mines. Now due to the change in administration this trade may be cut off from the world financials and be utilized by the group.

UN estimates the group's annual income from 2011 onwards at around $400 million (£290 million).

By the end of 2018, it may have risen to as much as $1.5 billion a year, according to BBC investigations.

It is alleged that certain countries, such as Pakistan, Iran, and Russia, provide financial assistance to the Taliban. This is a practice they frequently deny.

Among the largest individual contributors (private citizens) are Pakistanis, Saudi Arabians, United Arab Emirates citizens, and Qataris.

Experts estimate that the cost might reach $500 million a year.

The Taliban is estimated to earn between $100m and $400m a year from the illicit drug economy.

Approximately 60% of the Taliban's revenue comes from drug sales

With the Afghan government ousted, the Taliban now control all major trade routes and border crossings, creating more income opportunities from imports and exports.

In 2018, Afghanistan's Electricity Company's head told the BBC that the Taliban were billing electricity consumers in different areas of the country for more than $2m a year.

The mining industry in Afghanistan is worth an estimated $1bn annually, according to Afghan government officials.

Until their takeover, the Taliban primarily earned revenue through criminal activities, including opium poppy cultivation, drug trafficking, extortion of local businesses, and kidnapping, according to the UN monitoring group. Estimates of their annual income range from $300 million to $1.6 billion. According to one estimate, they earned around $460 million from opium poppy cultivation in 2020. Despite strict UN sanctions, they have also supplemented their income with illicit mining and overseas donations. Under the new regime, it is not clear how the Taliban's revenue sources will change.

In an attempt to counter India's influence in Afghanistan, the Pakistani security establishment continues to provide financial and logistical support to the Taliban.

On 15 August, Afghanistan's internal banking system froze up when the militant group seized power. The economy was already extremely fragile, heavily dependent on aid. When it became clear that the Taliban would gain control of Kabul, western powers, including the US and Germany, suspended foreign aid to the country. Both the World Bank and the International Monetary Fund (IMF) have halted payments since then.

The foreign reserves of Da Afghanistan Bank (DAB), the central bank, have also been frozen. DAB has reserves of roughly $9bn (£6.5bn), most of which is held in the US.

Thus, civilians cannot access hard currency - the banks are mostly closed, and people cannot withdraw dollars. In light of the volatile political situation, the afghani currency-which had already suffered a decline in value-has now declined even further.

The story of the Taliban insurgency in Afghanistan has been a hot topic amongst all news circles this year. The limelight was set on all aspects of the nation and its governance across various sectors. But the story doesn’t just start here. Afghanistan was already facing severe obstacles with its economy and development before the collapse of the government. A rapidly worsening security system, a deadly third wave of COVID-19, severe droughts, and a final blow with the Taliban takeover, brought the Afghan economy to its knees. Prices started shooting up since the beginning of 2021. Basic household supplies, food, and fuel started selling at a higher cost. This is due to the Taliban capturing border posts and key transit hubs, thus disrupting supply chains. 

The Taliban Economy

CHAPTER 1: What is the Evergrande situation?

Evergrande is one of the fortune 500 companies. It is China's most prominent real estate developer. Since its founding in 1996 by Hui Ka Yan, it has accumulated more than $330 billion in debt, making it the world's most indebted developer. Right now, 800 projects of Evergrande are unfinished, and 1 million people are waiting to move to their new homes. The company used to build 600,000 homes on an average annually. To meet its capital expenses, the company had to borrow regularly. In the last decade, the company's debt has grown by 56 times. Its shares drastically fell by 81%. Lately, the company has been trying to raise money by selling its assets.

China's growth has been fueled by debt, especially in the real estate sector. In the initial months of 2020, more than 200k companies went bankrupt. This debt is now so enormous that it can affect its economy. Previously in 2008, the Lehman Brothers collapsed in America. It held a debt of more than $600 billion and set off the global financial crisis of 2008. The working class lost jobs, and companies were shut down. The US government had to step in to save the banks. With the potential to export a global crisis singlehandedly, Evergrande could create a similar financial pandemic if the economic spillover isn't contained promptly.

Does a Chinese real estate/ property area problem have broader implications on different economies around the world?

Metals, including steel, have been big winners in the Indian portfolio since the third quarter of 2020. Fearing that the US may try to curb commodity inflation by strengthening the dollar, India had started trimming these a few months ago.

China plays a vital role in determining global commodity prices, including that of metals. The country's real estate sector is a significant consumer of steel, so lower demand from the sector could send steel prices stumbling. Shares of Indian steelmakers such as Tata Steel, Steel Authority of India (SAIL), Jindal Steel and Power, and JSW have declined in recent sessions following Evergrande's default on debt. But India's metal players potentially have several factors working in their favor. In recent months, a steady recovery in India's domestic economy, fuelled by the government's policies toward public infrastructure projects and ease of Covid lockdowns, ensured that manufacturing and construction activities picked up quickly.

Commodity exporting companies in India will face the axe if China faces an economic slowdown. In case the Yuan depreciates during a Chinese recession, exports become cheaper. Eventually, India will face intense competition from Chinese companies in exports. In the near term, India might witness fund outflows, but in the long run, it might turn out to be good for India as more global manufacturers are looking for alternatives to China.

Factors hurting the sentiment of investors:

The inflation rate in China is 0.8 percent as of August 2021, down from 5.4 percent in January 2021, which could go up to as high as 2.5 percent annual average.

The crisis has arrived at an inopportune moment when half the world faces the third wave of Covid infections due to delta variant resulting in a surge of Covid cases.

China's federal reserve has planned to taper monetary policy to regulate the market cash flow better.

Many signs of weakness in the world's economy and movements show revival can take longer than experts had anticipated.

CHAPTER 3: What are its possible ways out?

At the present moment, Evergrande has been selling off its stakes in local banks in China to raise some much-needed cash. Doing so has allowed the authorities to stall any significant decision about the company's future. Following this, Evergrande has hired financial advisors and experts to assess its finances and draw out a restructuring plan. But a humongous debt of 330 billion US dollars has made the authorities realize that they can only delay the inevitable.

The outcomes expected following the company's failure to pay within the consequent grace period of 30 days include:

The Chinese government has tried to alleviate the situation to some extent. The People's Bank of China has pooled cash into the financial sector to keep the liquidity going, and state-backed firms have agreed to buy Evergrande's assets as per the government's request. Authorities have also assigned financial regulators to encourage banks to relax loans for homebuyers around the country. Fearing economic stagnation under the weight of an enormous debt, the Chinese government could completely take command and bail out the company. However, such a bailout is fraught with risks. Firstly, it will require generating a fresh supply of capital, eventually debasing the currency's value. Secondly, China has been trying to keep a tight rein on excessive borrowings by developers ever since the real estate market started blooming. A bailout would dilute their efforts to discipline companies in their finances.

 Although a restructuring process is currently underway to keep the real estate operations running, the absence of a direct bailout by the government would lead to a complete liquidation of the company. Then the company would have to wind up its operations and sell its assets to pay off its investors. An unsystematic liquidation would result in the collapse that everyone has been dreading, a shortfall in China's property sector. Ultimately this could lead to an enormous spillover of effects in various financial assets and foreign markets.

CHAPTER 4: How similar and different is it from the 2008 Lehman's crisis?

The Global Financial Crisis of 2008 is widely regarded as the worst financial catastrophe since the 1930s Great Depression. It started in 2007 with the subprime mortgage crisis in the United States. Later, the collapse of the major investment bank Lehman Brothers in September 2008 developed into a full-fledged international banking crisis. At its peak, Lehman had a market value of nearly $46 billion, which was wiped out in the months leading to its bankruptcy.

Analysts say that Property developer China Evergrande's debt woes are not likely to cause the same fallout as the US investment bank Lehman Brothers collapse in 2008. Evergrande holds land, while Lehman held financial assets. Evergrande is not a hedge fund with massive leveraged positions or a bank whose financial asset prices are hurtling towards zero. Instead, it's a property development firm. If Evergrande can get some cash flow into its physical assets, the company can finish its development projects, sell them and start paying down debt.

Another critical difference in Evergrande's case is the greater degree of government control and involvement in China's real estate industry. The government can control even non-state financials to an extent rarely seen outside China. The US government ultimately allowed Lehman to fail while bailing out other financial institutions. In China's case, Beijing has tried to enable the market to play a more significant role in the economy by letting more state-owned enterprises' loans default. With an annual profit of 1.9 trillion yuan, China's banking system would be able to absorb the loss from Evergrande. But does that mean the state would tolerate risky growth models, unrestrained borrowing, and corruption? And take the blame for jeopardizing the country's economic progress?

Our Newsletter

finances of f1

the taliban economy

evergrande’s road to ruin

personal finance: take control of your money

lgbtq+ & pride month

impact of covid-19 on business and finance industry

technological advancement digitization, the rise of ai/ml

brisk walk along dalal street

predatory pricing: everything you need to know

the scam