Formula 1 is now costing Liberty clutches of money

A Mercedes F1 Wagen on one of the test days earlier this year

We could have predicted that Formula 1 would cost a lot of money. Now we know how bad it is.

A paltry $ 24 million. Which was Formula 1 sales in the past quarter. To put it in perspective: a year earlier, Formula 1 yielded 620 million dollars. A gigantic difference, which of course has only one reason, namely the corona virus.

Formula 1 mainly gets its money from three sources. The promotion fees, broadcasting rights and advertising and sponsorship money. Because of corona there were no races, so no promotion fees, no broadcasting rights and no advertising money. The only income came from annual sponsorships, which are not linked to races.

If you have little turnover, then it is logical that you have less profit, right? Well, that’s right, although not as bad as you might think. In the past quarter, the Formula 1 organization calculated a loss of 136 million dollars. Formula 1 now costs a lot of money, although it is not too bad. Last year there was a profit of ‘only’ 14 million dollars. That while they generated nearly $ 600 million more turnover at the time.

What causes this difference? Simple, they have been cutting costs nicely. They made the biggest profit on the payouts to teams. The Formula 1 teams receive money per race. In the second quarter of 2019, there were 7 F1 races, so the organization paid $ 335 million. There was no race in the second quarter of 2020, so the organization did not pay anything at all.

There were also fewer organizational costs due to the lack of races, there was less need to advertise and the personnel costs were lower. Some countries, such as the UK, supported companies in paying workers. In this way, Formula 1 managed to avoid bigger financial problems.

Although the numbers are now anything but rosy, F1 does use positive words. They have new sponsorship deals and of course there is now racing again. They hope to be able to drive 15 to 18 races, with all the income that entails. Whether Formula 1 will still be in the black this year? That is not yet clear, as there are still hardly any fans present at the Grand Prix. But Formula 1 is still hopeful.


Recent Articles

New nose for Buick Enclave

Buick shows a revised version of the Enclave. In particular, the nose of the hefty SUV is undergoing a major overhaul. At Buick news...

Jenson Button is returning to Williams after twenty years

Jenson Button began his career with the Williams F1 team more than 20 years ago, now he returns in a different role. Back to where...

Legendary stuntman Rémy Julienne passed away

Rémy Julienne passed away at the age of 90. Julienne was the man behind countless stunts and car chases in films and TV...

Volvo XC40 T2 driving test

In the series Wouter goes out with the slip-on. Today the Volvo XC40. How to like 129 hp in the Volvo XC40...

Volkswagen saw profits halve in 2020

The Volkswagen Group saw its profit halve last year. This was partly because the company had to close factories due to the outbreak...

Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here

Stay on op - Ge the daily news in your inbox