Forbes: F1 Team Prize Income May Drop 93%April 28, 2020
The Forbes business publication has calculated how much Formula 1 will cost the race in 2020 without spectators. The figure was impressive …
While discussing the option of holding the first Grand Prix of the season behind closed doors. What will happen next is still unknown – everything will depend on the epidemiological situation in a particular country. MotoGP promoters, for example, believe that racing with spectators will only be possible after the creation of the Covid-19 vaccine, which may only appear next year.
According to Forbes, most authorities give the organizers money to collect the FOM in exchange for the economic effect – the income of restaurants and hotels from the public coming to the Grand Prix. There will be no income, there will be no payment for the conduct. Last year, F1 earned 602 million from 2 billion of total profit through annual contributions.
Plus, F1 will have to compensate the organizers for the loss of money from ticket sales. The total revenue from ticket sales for the year in 2019 amounted to $ 673 million.
If we take last year’s F1 income as the basis, then less than 800 million will remain without promoter fees and after paying compensation to the promoters. Another 100 million Formula 1 risks not being credited due to the lack of VIP guests at the Grand Prix. At the same time, ordinary items of expenditure will not go anywhere, such as broadcast costs, which last year amounted to 528 million.
Thus, the total F1 income for 2020 will be only 100 million. Of course, the teams that receive 68% of the income will suffer the most. Their prize pool will decrease from 1 billion in 2019 to 68 million, i.e. by 93%.
Last week, Liberty Media, after a complex restructuring of its assets, allocated 1.4 billion financial assistance to Formula 1, including for the payment of prize money for 2019. According to Forbes estimates, this amount is enough for a year. The question is when the crisis will end …
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