What do racers of Formula-1 do with their income?
To reduce risks, today businessmen try to follow steps of celebrities. The majority of billionaires started their career in turbulent 50s – 80s. Today the competition has increased, laws got stringent and opportunities are totally different. How to control your funds today? We offer to learn how racers of famous Formula–1 gain their income and on what do they spend their funds on.
It`s not so easy to make a lot of money, but it`s much more complicated to spend them in a reasonable way. This is a question of high priority for Formula–1 racers. Racers` payments are constantly increasing together with balance figures on banking accounts. Young Formula 1 stars often lose their head after getting their first payments and spend money on yachts, cars, apartments in penthouses of the best places in the world. However, in a course of time it becomes clear that they won`t stay in each apartment for more than a week, sail on 10 yachts at the same time, and it`s not exciting to take the wheel of ordinary autos. Thus, in 2004 Janson Button was selling luxury real estate in London which was bought during first years of his career. The investment turned out to be unpractical and unnecessary. Irrelevant capital investment often result in particular waste of accumulated savings and even loss of money. It`s really important to make a plan for investment, diversify own investment both in various investment types and different geographical regions. The best way, for sure, is to turn to experts who will make such plan for you, provide you with statistics, estimate risks and start working with your investment in order to gain revenue and avoid losses. This is the way the famous Formula 1 racers act now, having experienced purchasing of useless crazy things and received their 2nd or 3rd large payment.
As a matter of fact, celebrities can make such younger years mistakes. As an example, recent payments of Formula 1 racers:
|Racer||Team||Salary in 2015||Salary in 2014||Salary in 2013|
|L.Hamilton||Mercedes||€ 25 mln.||€ 16 mln.||€ 16 mln.|
|F.Alonso||McLaren||€ 23 mln.||€ 22 mln.||€ 20 mln.|
|S.Fettel||Ferrari||€ 22 mln.||€ 22 mln.||€ 12 mln.|
|N.Rosberg||Mercedes||€ 20 mln.||€ 12 mln.||€ 11 mln.|
|K.Reikonnen||Ferrari||€ 18 mln.||€ 22 mln.||€ 3 mln.|
|J.Button||McLaren||€ 12 mln.||€ 16 mln.||€ 16 mln.|
|F.Massa||Williams||€ 5 mln.||€ 4 mln.||€ 6 mln.|
Creating business projects, racers usually pay their attention to area, which they know best – car racing. Third time world champion and young racer Nelson Pike owns an autodrome in Brazil. Jacques Villeneuve together with his coach, Ervin Herbel, opened fitness centers chain in Switzerland and France, which qualifies new racers for specific load of “older” competitions.
Rubens Barrichellos` company Barrichello Racing deals with carrying out racing competitions in San-Paulo. Other Brazilian, Pedro Diniz, after finishing of his career worked as a manager in Prost Grand Prix. When he returned to motherland, he started to organize championships in his country and some younger “Formula” classes.
But still, not all racers try to commit themselves to racing and start looking for business ideas which are completely different to previous activities. Gerhard Berger, for instance, felt quiet at home in business. When in late 90s his father died in flight accident, he quickly got their family trucking company off the ground. But the four-time world champion, French racer Alen Prost, whose funds are estimated in 70 million dollars, poured his money down the drain in his commercial shady business. His transport company project of late 90s just collapsed. But if you use a reasonable approach to business, the result may turn out to be totally different.
Schumacher Brothers built ultramodern carting center with excellent race courses and developed infrastructure, which hosts various championships, including Europe Championship and World FIFA championship. Their racing school also teaches thousands of boys and girls the art of kart driving. The wealth of seven time champion Michael Schumacher is estimated in 780 million dollars. Michael also has the entire souvenir business producing everything, from simple T-shirts and baseball caps to glazed tile and furniture with his portraits.
Michael Schumacher takes their name reputation very serious and in 2004 he didn`t allow his younger brother, Ralph Schumacher; invest about 1 million euro on the territory of Slovenia.
Eddie Irvine, the main partner of Michael Schumacher from Ireland is not just a womanizer, but successful stock broker on the Royal Exchange. His wealth is estimated in 180 million dollars. The former racer is well versed in all laws and tricks of bond markets. Eddie is a great broker; he sees favorable deals from far off. His income from market speculations often exceed his racer`s payments!
True born businessmen never confined him to market speculations. In the end of 90s Eddie invested about 10 million euro in building of new plant and shopping centre of well-known baking company Cuisine de France in Ireland. Investment was more than profitable, considering that this company is the largest and most successful bread and pastry producer on Green Island, with large chain of 4500 shops in Ireland.
When coming out for Jaguar, Irvine established his own property company in Miami, which was quiet successful. After leaving racing Eddie finally moved to the USA, where he started to sell luxury villas and mansions.
Irvaine is also known as a heart breaker of the most beautiful women in the world, including Pamela Anderson and Kylie Minogue. Today Eddie has an apartment in New-York, house in Dublin and villa not far from Milan. He also owns the yacht on his berth on Eskuma Island and private jet in the airport. He deals with the real estate in the USA, manipulates on Royal Exchange, and part of his funds is also invested in business taxi in Ireland.
David Coulthard, the old friend of Eddie Irvine, invests in the real estate as well. The Scotsman became a part-owner of hotel in Monaco, having invested 10 million dollars in the year 2000 in restoration of Columbus hotel with a view on Mediterranean Sea. Columbus has all the things needed – 180 hotel rooms decorated in style, bars and restaurants with excellent cuisine and excellent service. 3 star hotel is attended by many Formula 1 stars, you can easily find there Mika Hakkinen and Janson Button. Columbus hotel chain is expanding around the world, while the wealth of 70 million dollars continues to grow.
The Italian Jarno Trulli used to stop by in Columbus bar, but he couldn`t stand the big cities and social life, that`s why he left Monte Carlo. Apart from racer`s career, Jarno is a successful businessmen and a wine-grower.
Up to 1999 his interest to wine growing was unprofessional, no more than hobby. Trulli and Cavuto families have bought out broken after the second world war Podere Castorani property, located not far from Abruzzo, Jarno`s native hilly village. On 30 hectares in the central Italy on the 250 meters above sea level famous local breed of grapes – Montepulciano d’Abruzzo.
The old winery and cellars wound with cobweb started to operate again. It took almost 4 years to restore the business, and the large amount of money was spent. The wine-growing company, which was named after the estate Podere Castorani, filled the first wine into bottles in 2003 only. “I was really enthusiastic about wine-making, – says Jarno Trulli. – This business gives me a feeling of inner satisfaction. We are working with the sun, earth, water, and all these elements give us totally new wine. I always lived in a village and felt the naturality, so this new hobby made my life steady and harmonious”.
What is written on every bottle of wine, produced under the brand of Podere Castorani?
“Our historical farm was well-known even in 1793, under the name of Casino Castorani. Today the property occupies 30 hectares and here Montepulciano D’Abruzzo breed is grown. Grape wine of middle age, 25 years, grows on fertile ground, free of agricultural chemicals. Only true experts keep a check on the wine-making process, including more than 40-days maceration. Before bottling, this wine was aged in a small oak cast, without using preservatives or filters, which retains its unique natural properties. I always look for the excellence in everything, whatever I do – race a bolide, where every split second is important, or make wine, where hard work and delicate care may guarantee the quality of wine and its unique character”. Jarno Trulli.
Another racer, the German Heinz-Harald Frentzen, is a co-owner of the winery in the province of Alicante, in eastern Spain. He is also interested in carpet weaving. For many years, Frentzen creates design for carpet collections and successfully sells his production. Now Frentzen already has a small workshop where the carpets are woven according to his designs, but sometimes he embodies his ideas, sitting at the weaving loom and creating new items.
The racer career is not everlasting. Racers make attempts to establish themselves as businessmen. And many of them manage to do it. The majority of racers consider investment in the real estate and stock exchanges to be the most profitable option. The real estate generates monthly revenue on a regular basis if invested rationally. Do you want to invest as experienced Formula-1 stars – invest with OLIESERVE! After the research of the property, our professionals selected the most advantageous options. This list includes innovative projects of the real estate market in Dubai and Cyprus. You can learn the details HERE.
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