The coronavirus pandemic (COVID-19) It affected all the countries of the world in various ways. Health and the economy were the sectors hardest hit during the different times of the year. However, the Formula 1 reported that losses recorded in 2020 were one of the biggest drops in the history of the category.
Revenue generated by Formula 1 plummeted. The absence of fans in the stands was decisive when it came to calculating the balance sheets for this season. According Liberty Media, the organizing company of Formula 1, the losses are close to 30 million euros. This is an unprecedented figure for entrepreneurs.
As confirmed to the American media ‘Motorsport.com’, Liberty Media confirmed that the teams were provided 373 million euros. This means a quite considerable budget reduction, since in 2019 it was 536 million euros. This occurred immediately after the signing of the new ‘Pact of Concord‘, Some months ago.
From the organization they confirmed that the losses were due to health measures taken by leaders and governments. “Third quarter 2020 results were affected by the absence of fans, the location of the races, as well as the revised race schedule and the prorated recognition of certain revenue streams,” they said from Liberty Media.
However, the company assures that the consequences of the pandemic could have been worse. “It was partially offset by the growth in broadcasting, advertising, and sponsorship rates due to the impact of more proportional recognition of season-based revenue with three additional races, as well as the impact of revenue recognition of fewer races in 2020 ”, they commented.