F1 suffers substantial losses in 2020

The 2020 report drawn up by Liberty Media indeed reports a turnover down by 877 million dollars (723 million euros), from 2,022 billion to 1,145 billion dollars (1,668 billion to 944,3 million euros), compared to the previous campaign. A significant, but predictable, drop of 43%. 

While the 2020 calendar was initially supposed to have 22 events, many events were canceled due to the health situation. The majority of organized races took place behind closed doors and without a Paddock Club. A shortfall for promoters, who were unable to honor the sums they usually pay to the commercial rights holder each year.  

Liberty specifies that the health crisis led to an exceptional change in the contractual terms for the events that were able to take place, while the fallback solutions (Mugello, Nürburgring, Imola, Portimão, and Istanbul) only offered limited contributions. 

TV rights, which are also a major source of revenue in Formula 1, were also renegotiated downwards with official broadcasters. 

Finally, the amounts associated with advertising and sponsorship followed a similar negative trend, as commercial operations were made almost impossible. 

As a direct result, the sums paid to the 10 teams increased from 1,012 billion dollars to 711 million dollars (834 million to 586 million euros), representing a shortfall of 301 million dollars (248 million) for the teams. 

If Liberty Media had managed last year to generate a profit of 17 million dollars (14 million euros), the losses amounted to 2020 million dollars (386 million euros) at the end of 318 in terms of profit. exploitation.