Formula 1 reports a $115 million loss this quarter due to races without fans. They hosted 13 of 17 planned races this season but 12 of those happened without the fans which resulted in such a heavy loss.
The loss was for a three-month period which ended on September 30 despite record quarterly revenues of $597 million.
The global motorsport series’ third-quarter income saw a US$36 million drop from the US$633 million during the same period in 2019. The operating loss compares to a US$32 million profit last year.
Absence of fans and other reasons for the heavy loss!
Revenue from media rights, advertising, and sponsorship sales rose on a per-race basis. The revenue decline was down to the fact that fans were only able to attend one Formula One Grand Prix.
In addition to the absence of fans, Formula 1 said its earnings were impacted by the location of races and the timing of its revised calendar, which got underway in July after been suspended in March. The series also paid $441 to teams due to an increased number of races, up from US$335 million in 2019.
Liberty Media said: “Results in the third quarter of 2020 were impacted by the absence of fans, the location of races as well as the timing of the revised race calendar and pro-rata recognition of certain revenue streams.”
It noted: “Primary F1 revenue decreased mainly due to the limited race promotion revenue received since fans were prohibited at all but one race during the third quarter. “This was partially offset by growth in broadcasting and advertising and sponsorship fees due to the impact of higher proportionate recognition of season-based income with three additional races during the current period, as well as the impact of recognizing revenue over fewer races in 2020.”
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