Formula 1’s revenues crashed by 96 per cent year-on-year during the 2020 Q2 period, according to figures released by owner Liberty Media on Monday.
Due to the Covid-19 pandemic no Formula 1 events were held through the months of April, May or June compared to the seven that took place in the same period in 2019.
Revenue during that period was just $24m, compared to the $620m accrued in 2019, while after recording a $14m profit in Q2 2019 that figure tumbled to a $136m loss in 2020.
Formula 1’s main revenue streams come from race promotion fees, broadcasting deals, as well as advertising and sponsorship fees.
As there were no events held during Q2 2020 there was only limited revenue, mainly consisting of “elements of sponsorship contracts associated non-race related rights.”
No race promotion fees, nor broadcasting fees, were recognised, while other Formula 1 revenue plummeted due to zero income from aspects such as hospitality.
No team payments were made, compared to $335m in the three-month period during the previous year, on account of the absence of grands prix.
Formula 1 added that it deferred “non-critical expenses” and “implemented certain cost cutting measures in the second quarter, including the elimination or deferral of non-essential expenditures, salary reductions and lower bonus accruals.”
Approximately 50 per cent of its UK-based personnel were also put on furlough, as per the government’s scheme, during the lockdown period.
“We were excited to return to the track in July and have now completed five races of what we expect will be a 15 to 18 race season,” said Chase Carey, Chairman and CEO of Formula 1.
“During the break we continued to move the business forward with a reduced cost cap for the 2021 season, and announced new broadcast and sponsorship deals.
“We are thankful to the FIA, teams, promoters, our employees and other key partners that made this return to racing possible.”