The coronavirus flare-up has gouged the fortunes of F1 racing, maybe more than some other sports. Its races occur everywhere throughout the world and pulled in 4.2 million observers a year ago. So they rely upon open borders and governments permitting mass social events.
It clarifies why F1’s 2020 season still can’t seem to get the green light. The impact of this may be felt for quite a while to come.
F1 groups have gotten installments ahead of time to secure the game’s “ecosystem” during the coronavirus emergency.
Teams receive a part of F1’s income. It has endured a significant shot as an ever-increasing number of races are lost from the schedule.
Three income sources cover the high-octane expenses. Two have come to a standstill and the other is also drying.
The top groups have some guaranteed fees under arrangements haggled in the Bernie Ecclestone period. However, those further down the field depend exclusively on a portion of F1’s continuous profits.
Liberty Media has several backup plans for the 2020 season.
“We have scenarios for zero races, anywhere from 15-18 races, races that begin with no fans present and only the teams,” Greg Maffei said in a call with Wall Street analysts.
Liberty Media president and CEO Greg Maffei express that to help them through the present emergency, a few groups have gotten early installments.
F1 is attempting to design a beginning to the season, regardless of whether that implies races without observers, so as to ensure salary from TV organizations and its sponsors.
“We may be sufficiently capitalized to handle that for 2020, but there are teams which will incur costs, particularly those which don’t have minimum guarantees from F1, and one of the major if not their major source of revenue is their share of the profits of F1.”
“There’s a degree that we’re running profitable or not profitable races, but they still need to incur all their costs of running their terms. It’s a challenge.”
Maffei says that they have advanced money in advance to some teams.
“We have advanced money in advance of team payments for certain teams already. There are cases where we may do more of that. There are other things that we might do to bridge teams that might need help.
“We’re certainly not viewing this as an open chequebook. We want to make sure that teams are solvent because they are part of what we need to race successfully in 2020, 2021, and beyond.”