COVID-19 has hit all the sectors financially. Sports are also a part of it. Previously we have seen the revenue drops in Football, Cricket, and some other sports. Now Formula 1 also joins the list.
Formula 1’s revenues took an $877 million debt last year due to the COVID-19 pandemic. On Friday, Liberty Media reported that there was a 43% of revenue drop as a result of the COVID-19 pandemic.
In 2019, a total of 21 races took place, and 22 had been planned for 2020, with 23 scheduled for 2021. But because of the Corona Virus outbreak, only 17 races took place last year, mostly without spectators. The events of Monaco and Singapore were cancelled. In the previous year, there was a total revenue of $2.022 billion. But in 2020, it drops down to $1.145 billion.
It was also reported that an annual operating loss of $386 million, compared to a previous profit of $17 million, and the 10 teams shared $711 million. It is $301 million less than the previous year and a drop of 30%.
Formula 1’s primary revenues are mostly come from race promotion fees, broadcasting deals and advertising and sponsorship. It also provides a significant part of the budget for smaller teams.
New chief executive Stefano Domenicali of Formula 1 said, “Due to the reduced number of races, the duration of the season and almost no fan attendance, unsurprisingly primary revenue declined.”
He also assured to make up the deficit this year as the race will be taking place in their scheduled time.