• English
  • Italiano
FOCUS
focus arrow
F1 Mercedes, Hamilton: «Continuando così ci vorrà fortuna» How Formula 1 teams coped with Canadian Grand Prix brake demands Sebastian Vettel gets Austrian Grand Prix grid penalty for impeding Ferrari F1 customers Haas and Sauber take second engines of 2018 F1 Monaco, Libere 3: Ricciardo è super, Vettel 3° F1 Ferrari, Raikkonen: «Non credo che i tempi contino molto» The other men behind the Stroll-led Force India F1 team buyout Kimi Raikkonen lucky to finish after hitting wall 'at full speed' F1 2019 front wing designs make on-track debut in Hungary testing Carlos Sainz Jr not yet on the limit with 2018 Renault F1 car FIA explains how Canadian Grand Prix chequered flag error happened Ferrari F1 reserve Giovinazzi keen to prove he's not just sim driver Why Formula 1 should replace mirrors with cameras - Motorsport Show F1 Azerbaijan, Vettel: «Non siamo i favoriti, i dettagli faranno la differenza» Why Mercedes' Austrian GP F1 update is its boldest 2018 step so far F1 Ungheria, Arrivabene: «Restiamo sereni, il mondiale è lungo» Gallery MotoGP. Il GP di Spagna 2018 Exhausted Lewis Hamilton was 'struggling to stand' after British GP F1 Canada, Bottas: «A Montecarlo abbiamo limitato i danni» Andrea Dovizioso: l'elogio di essere sé stessi

PALCO23 SHINES THE LIGHT ON THE FINANCIAL ACCOUNT OF DORNA


Economy

STARTED LENDING OPERATION FOR 200 MILION OF EURO TO DEVELOP NEW PROJECT

To “Palco23” knowledge (the most popular website on sport’s economy in Spanish), Dorna Sport S.L. (The MotoGP rights-holders) after a loss of 6 million of Euro in 2016, has chosen to take out a new loan of around 200 million of Euro, which increased that amount to 900 milions loans the accounts payable.

The data have been confirmed by Enrique Aldama in an article on the present / future of Dorna

Aldama is Chief Operating & Financial Officer of Dorna S.L. and for many years he worked for the Corporación Industrial y Financiera Banesto (Banesto’s industrial holding) as a Senior Asset Director, and was responsible for the investment portfolio which Dorna was part of.

The Iberian Chief said: “It was decided to increase the debt, also not needing money”, because the preceding year was closed with 112,51 million of Euro of the liquidity and stand-by liquidity (thanks to the earnings in the earlier years).

The debt exposure for banking sector would mainly has increased because the biggest shareholder of Dorna, the Bridgestone Venture Capital (the same that sold the Infront Group to Chinese colossus Wanda for over 1.05 billion of Euro few years ago), would have decided to raise some 180 million of Euro under the voice “debit exposure” (devolución de aportaciones), that is a special dividend transaction.

Aldama has also advanced that the business of Dorna is growing with positive results, although less than the expectation (the consolidated group revenue expected to reach 300 million of Euro). This after the last fiscal year (2016) is closed, and about it “Palco23” is plain-spoken and talk of “trouble with the IRS” which would turn to producing a loss of six million of Euro, compared to the net profit of 9,56 million in 2015.

To deal this question, Dorna would have decide to make the necessary allocations to reserves for such situation and in this way is also admitted that the company has ongoing problems with the revenue.

According with Dorna’s managment, this great amount of money has been applied while undergoing inspection in 2010 and in 2011, to the tune of 5.03 million of euro, and also due “for the expenditure produced by the write-off of some deferred tax assets in connection with the d financial charges which isn’t deducible from income taxes in previous years”.

In March 2016, the Court’s Administrative of the Supreme Court (TS) has confirmed in a judgment that the manager of the MotoGP and two of his executives would have "simulated", in 2003 and 2004, a insider trading. The reason was to get fiscal advantages and a distribution dividends not scheduled and for this the TS has ruled that the penalty should be lieved for over 30 million of Euro.

“Palco23” reports that two Iberian judges are not inclined to agree with prosecution of insider trading, and others, and a third judge has not believed that the breach was really serious and the hypothesis of hiding was applicable. This is to show that the case is a bear.

It will be very interesting to understand if this new credit line financially will improve effort day-to-day MotoGP management, that is increasingly tilted towards of market of the Far East, or will be needing for the launching of new projects which, in the medium to longer term, could make to increase, eventually, the turnover of Dorna S.L. Usually the growth of borrowing can be justified on range of investments, that  in the next week we will analyzed in our wenside. (first part)

 

*THE ITALIAN ARTICLE OF MARCEL VULPIS IS BEEN TRANSLATED  BY EDITORIAL SKEETGP.COM STAFF