Formula 1 earnings fell significantly

Formula 1 earnings fell significantly

May 8, 2020 0 By autotimesnews

Liberty Media, which owns a controlling stake in Formula 1, published financial results for the first quarter of 2020.

For January-March 2020, the revenue of Formula One Group amounted to $ 39 million against $ 246 million for the same period last year. Thus, the decline in income was 84%. At the same time, the group’s total losses increased by 162% – from $ 58 million in the first quarter of last year to $ 152 million in the first quarter of 2020.

Commenting on the published figures, Liberty Media noted that the main income consists of three sources – promoter contributions, deductions of television companies and sponsorship payments. Since there were no races in the first quarter of 2020, the main income was derived from non-racing sponsorship contributions on the dates stipulated by previously concluded contracts. The company noted that in the second quarter of 2020, racing is not planned, which will also affect the level of income.

In the report, Liberty Media reiterated its intention to hold from 15 to 18 races from July to December, but at the moment it is not known at what stage the fans will be able to attend the stands.

Chase Carey, head of Formula 1: “We thank the FIA, promoters, our employees and key partners for their support and efforts during this difficult period. We are moving forward in the implementation of our plans for 2020, and at the same time we are working to strengthen the long-term future of Formula 1 through new technical, sports and financial regulations. These steps will increase competition and struggle on the highway, making the business more profitable for all parties. “