Even Bernie Ecclestone can't win 'em all. As Pitpass has reported, F1 hit record revenues last year from fees paid by broadcasters and circuits. However, it was never going to be so easy to increase the amount spent on corporate hospitality.

The last thing that most companies wanted to be seen doing last year was guzzling champagne at the expense of their shareholders and, with tickets to F1's exclusive Paddock Club costing as much as £2,795, it's no surprise that takings were down.

According to a report in the Independent by Pitpass' business editor Chris Sylt, revenues of F1's corporate hospitality provider, Beta Holdings, crashed by 18% last year plummeting £20.5m to £93m. Duncan Llowarch, the company's chief financial officer, attributes the decline to "prevailing economic difficulties" and a reduction in the number of races on the F1 calendar from 18 to 17.

Beta Holdings makes 98% of its turnover from Allsport Management, the Swiss-based operator of the Paddock Club which treats guests to perks such as an open bar with champagne, a gourmet banquet, a masseur, beautician, hairdresser and driver appearances. Sponsors use the Paddock Club to entertain clients but several key Allsport customers slashed their hospitality budgets during the downturn.

One hospitality programme which reversed into the pits last year was that of the Royal Bank of Scotland (RBS), which has strong links with F1 as it is a sponsor of Williams and also provided F1's majority owner CVC with much of the £1.5bn of debt it used to buy the sport. RBS was one of the biggest spenders in 2008 when it entertained 400 people at the Singapore Grand Prix alone where entertainment included a cocktail party hosted by former F1 champion Sir Jackie Stewart.

Two former Allsport clients, ING and BMW, are also believed to have made significant reductions in their corporate hospitality spend before they both quit F1 altogether during 2009.

However, it wasn't all bad news for the company. Despite the drop in turnover, operating profit was up by 73% to £5.3m as costs were reigned in by £22.7m.

Lower attendance enabled a reduction in servicing costs and the drop in turnover meant that license fees to other companies in the F1 empire were also reduced. One area where money wasn't saved was wages. Beta Holdings' 21 employees were paid an average of £195,000, a boost of 8% on the previous year.