Sharp drop in revenue for F1 in Q2 2020

While the 2020 season has restarted with a bang with already 5 Grands Prix in 6 weeks, Liberty Media has published the group's financial results F1 in the 2nd quarter of 2020. 

Unsurprisingly, the sport is seeing a sharp drop in revenue, with the current campaign only resuming on July 5 in Austria. 

While the F1 Group had generated 620 million dollars in revenue (527 million euros) in the same period last year, the amount of revenue only amounts to 24 million dollars (20 million euros ) this year, a net fall of 596 million dollars (507 million euros). 

F1 also recorded losses of 136 million dollars (116 million euros) where 14 million (12 million euros) in profits had been made at the same time last year. 

« No races having taken place during the 2nd quarter of 2020, revenues were limited, explains Liberty Media soberly. 

With all the events being held behind closed doors, the commercial rights holder was unable to receive the usual income from Paddock Club activities. 

In the absence of a race, no payments were made to the teams: an emergency situation which favored the adoption of a New F1 Deal at the end of May, symbolized by the lowering of the 2021 budget ceiling to 145 million dollars (123 million euros), compared to 175 million initially (148 million euros). 

Liberty Media is still aiming for between 15 and 18 dates this season, the minimum threshold to unlock the revenue associated with lucrative TV and digital broadcast contracts. The official calendar currently has 13 meetings, not counting the rounds planned in the Persian Gulf at the end of the year. Liberty is currently working on the program for the month of November, which could accommodate an Asian tour or extend F1's stay in Europe. 

Earlier this year, the American group reorganized its various assets to free up liquidity of 1,4 billion dollars for F1 (1,2 billion euros).