The COVID-19 pandemic has not only affected people from a medical perspective but a financial one as well. The Scuderia Ferrari F1 team is just one of many victims, but the Maranello outfit has been the worst hit.

As it turns out, their revenue loss will be in the “high tens of millions” due to the pandemic.

Between the months of April and June, Ferrari reported a net profit of €9million as compared to €184m last year. To make matters worse, the F1 hiatus was a major contributing factor to the gigantic revenue loss.

Since no races were conducted until July, no revenue came in during the first half of the year. As a result, Ferrari’s revenue took a huge hit during the first two quarterly financial reports.

So far, F1 has confirmed a 13-race calendar, though the aim is to have a minimum of 16 rounds. Of course, with the COVID-19 threat still looming, most races will take place in front of empty stands.

Naturally, teams are bracing for a huge financial blow as F1’s own revenues will be significantly affected in the process.

How bad is the situation at Ferrari?

“It’s clearly in the high tens of millions, in terms of the hit,” Ferrari CEO Louis Camilleri revealed in a conference call.

“In terms of next year, it should be better, because hopefully, by next year, we’ll be back to a full race schedule, and we will get the necessary revenues in terms of sponsorship and from the commercial rights.

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When the Q1 report was published, Ferrari revealed that F1’s “drastic” revenue loss had the worst impact on their situation. Furthermore, the numbers say that it witnessed a €48m decrease in sponsorship, commercial, and brand revenue.

Admittedly, the company expected this due to the forced suspension of its manufacturing activities when Italy was in lockdown.

The F1 season is extremely important from a financial standpoint, but the situation has worsened due to the team’s lack of competitiveness.

The team even revamped their technical department and brought in a familiar face. However, chairman John Elkann confessed that he does not think that they can claim any victories until at least 2022.

Big Name Returns to Ferrari F1 as Team Announces Major Organisational Changes

SOURCE- TheRace.com