F1 News: Ferrari hopeful revenue loss from delayed season to be "short-lived"

Ferrari is hopeful the loss in revenue from its Formula 1 team will be "short-lived" through 2020 as it braces for a drop in prize money and sponsorship income

F1 News: Ferrari hopeful revenue loss from delayed season to be "short-lived"

All 10 F1 teams are anticipating a fall in revenue racing activities this year due to the impact of the COVID-19 pandemic.

The opening 10 races of the 2020 season have already been called off, and while F1 bosses remain hopeful of staging as many as 18 races this year, a significant reduction in hosting fees is anticipated.

The hosting fees fund much of the prize money given to teams, who themselves are set to face falls in sponsorship income due to the suspension of on-track racing.

Ferrari CEO Louis Camilleri told investors that F1 was the one activity that would affect the company's financial results "in the harshest manner" this year, as well as being "by far the hardest to predict".

But Camilleri said he was optimistic the dip in F1 revenue would only last through 2020 and not stretch into next year.

"While the Formula 1 hit to revenues and earnings is not an easy matter to digest, the good news is that the significant losses incurred should be short-lived and contained to 2020," Camilleri said.

"Our current thinking in terms of revenues, although it's somewhat unpredictable, in 2021 they should come back certainly in terms of the races, which is a big part of it, and obviously also in terms of sponsoring.

"We know that the Formula 1 Group has worked a lot in terms of trying to attract new sponsors.

"Obviously the situation has delayed certain things, but hopefully by 2021 that will have come back.

"At this stage, we don't really foresee a continued reduction in the commercial rights holder revenues in terms of Formula 1 for next year, all things being equal."

F1 has confirmed the existing 2020 cars will be carried over to next year to reduce development costs for teams, while a reduced budget cap of $145 million is also planned for 2021.

Camilleri hailed the "substantial progress" teams had made to cut costs going forward, but said there was no way to completely offset the financial impact of 2020.

"There is no way we can offset through cost reductions," Camilleri said.

"Although we have reduced costs in Formula 1, there is no way we can offset the hit to the revenues on sponsorship fees, and especially on the revenues that are generated by the commercial rights holder.

"The hit to revenue essentially goes down to the bottom line, with some minor offsets.

"But it's a big hit, and as I said, the good news is that it's confined to this year hopefully."

shares
comments
Why Gasly needs more of Leclerc's steel
Previous article

Why Gasly needs more of Leclerc's steel

Next article

Racing Point: We are still F1's smallest team even with Stroll cash

Racing Point: We are still F1's smallest team even with Stroll cash
Load comments
Why Ferrari is sure its long-term Leclerc investment will be vindicated Plus

Why Ferrari is sure its long-term Leclerc investment will be vindicated

Humble yet blisteringly quick, Charles Leclerc is the driver Ferrari sees as its next
 world champion, and a rightful heir to the greats of Ferrari’s past – even though, by the team’s own admission, he’s not the finished article yet. Here's why it is confident that the 24-year-old can be the man to end a drought stretching back to 2008

The downside to F1's show and tell proposal Plus

The downside to F1's show and tell proposal

Technology lies at the heart of the F1 story and it fascinates fans, which is why the commercial rights holder plans to compel teams to show more of their ‘secrets’. STUART CODLING fears this will encourage techno-quackery…

Formula 1
Nov 29, 2021
How getting sacked gave Mercedes F1’s tech wizard lasting benefits Plus

How getting sacked gave Mercedes F1’s tech wizard lasting benefits

He’s had a hand in world championship-winning Formula 1 cars for Benetton, Renault and Mercedes, and was also a cog in the Schumacher-Ferrari axis. Having recently ‘moved upstairs’ as Mercedes chief technical officer, James Allison tells STUART CODLING about his career path and why being axed by Benetton was one of the best things that ever happened to him

Formula 1
Nov 28, 2021
The remarkable qualities that propelled Kubica’s F1 comeback Plus

The remarkable qualities that propelled Kubica’s F1 comeback

It’s easy to look at
 Robert Kubica’s second Formula 1 career and feel a sense of sadness that he didn’t reach the heights for which he seemed destined. But as BEN ANDERSON discovered, performance and results are almost meaningless in this context – something more fundamental and incredible happened…

Formula 1
Nov 27, 2021
The humbling changes Ricciardo made to deliver the goods for McLaren  Plus

The humbling changes Ricciardo made to deliver the goods for McLaren 

From being lapped by his own team-mate in Monaco to winning at Monza, it’s been a tumultuous first season at McLaren for Daniel Ricciardo. But, as he tells STUART CODLING, there’s more to the story of his turnaround than having a lovely summer holiday during Formula 1's summer break...

Formula 1
Nov 26, 2021
The potential benefits of losing the F1 constructors' title Plus

The potential benefits of losing the F1 constructors' title

As the battle continues to rage over the F1 2021 drivers' championship, teams up and down the grid are turning their attentions to the prize money attributed to each position in the constructors' standings. But F1's sliding scale rules governing windtunnel and CFD use will soften the blow for those who miss out on the top places

Formula 1
Nov 25, 2021
The invisible enemy that’s made Hamilton’s title charge tougher Plus

The invisible enemy that’s made Hamilton’s title charge tougher

After winning his past few Formula 1 titles at a canter, Lewis Hamilton currently trails Max Verstappen by eight points heading into the final double-header of 2021. Although Red Bull has been his biggest on-track challenge, Hamilton feels that he has just as much to grapple with away from the circuit

Formula 1
Nov 24, 2021
Why F1’s inconvenient penalties have to stay Plus

Why F1’s inconvenient penalties have to stay

OPINION: Quibbles over the length of time taken by Formula 1's stewards over decisions are entirely valid. But however inconvenient it is, there can be no questioning the importance of having clearly defined rules that everyone understands and can stick to. Recent events have shown that ambiguity could have big consequences

Formula 1
Nov 23, 2021