Miserable! F1 lost $136 million in the second quarter, with revenue plummeting 96percent year on year in 2019

category:Sports
 Miserable! F1 lost $136 million in the second quarter, with revenue plummeting 96percent year on year in 2019


The new championship epidemic is rampant all over the world, and the F1 season is naturally affected. The original Grand Prix races including Australia, Shanghai, China, the Netherlands, Monaco, Azerbaijan, France, Singapore and Japan were forced to cancel, and the new season began in Austria in July. In other words, it is equivalent to that there was no race at all in the second quarter, which naturally affected the income.

According to the financial report, as there is no race event held in the second quarter of 2020, F1s revenue will be greatly affected, and there will be no event related publicity and advertising expenses. The revenue from events related to paddock and TV media activities will also be, and the teams expenses will not be recorded, because such payment is also determined according to the proportion of events.

Due to the inability to run the race, F1 implemented some cost cutting measures in the second quarter, including canceling or delaying unnecessary expenses, reducing salary and bonus to maintain low consumption operation. During the period from April 3 to June 30, the team took advantage of the subsidy from the British government to let about 50% of its employees take leave to achieve the purpose of reducing expenses.

Nevertheless, F1s loss in the second quarter of 2020 is still as high as 136 million US dollars. Compared with the revenue of 620 million US dollars in the same period of last year, the revenue from April to June of this year was only 24 million US dollars, a decrease of 96% compared with the same period of last year. This figure indicates that F1 has been severely damaged during the epidemic period.

However, with the restart of the game in July, the economy is expected to return to a relatively normal level in the third quarter. F1 chief executive chase Carey said, I am very happy to welcome the return of the race in July. Now there are five races. We expect this will be a season of 15 to 18 races. Thanks to the FIA, the teams, the sponsors, our staff and other partners, we can make our race return. In fact, chase Carey did not directly talk about the loss of F1, but talked about the future prospects of the sport. The return of the race has brought vitality to the F1 world. Currently, there are 13 races on the F1 schedule this season, all of which are concentrated in Europe. This weekend, F1 will move to Spain for the sixth leg of the season. Source: Netease sports Author: Leon, editor in charge: Wang Chengcheng_ NB12651

However, with the restart of the game in July, the economy is expected to return to a relatively normal level in the third quarter. F1 chief executive chase Carey said, I am very happy to welcome the return of the race in July. Now there are five races. We expect this will be a season of 15 to 18 races. Thanks to the FIA, the teams, the sponsors, our staff and other partners, we can make our race return.

In fact, chase Carey did not directly talk about the loss of F1, but talked about the future prospects of the sport. The return of the race has brought vitality to the F1 world. Currently, there are 13 races on the F1 schedule this season, all of which are concentrated in Europe. This weekend, F1 will move to Spain for the sixth leg of the season.