Ferrari hopeful F1 losses will 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.

Ferrari hopeful F1 losses will be "short-lived"

All 10 F1 teams are anticipating a fall in revenue from 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 Lous 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.”

Read Also:

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
F1 must aim for IndyCar levels of competitiveness, says Brown

Previous article

F1 must aim for IndyCar levels of competitiveness, says Brown

Next article

Alonso claims 2021 plans are "more or less" set

Alonso claims 2021 plans are "more or less" set
Load comments
The details that boosted Verstappen and held back Hamilton in Austin Prime

The details that boosted Verstappen and held back Hamilton in Austin

As the 2021 Formula 1 title battle winds towards its climax, the United States GP added another thrilling act in the Lewis Hamilton-Max Verstappen battle. Although Hamilton aced the start, Verstappen and Red Bull took the initiative with strategy and were richly rewarded, despite Mercedes' best efforts as the race went down to the wire

Formula 1
Oct 25, 2021
US Grand Prix Driver Ratings Prime

US Grand Prix Driver Ratings

On a baking hot afternoon in Texas, Formula 1 drivers were tested to their limits. As the pressure on the title contending squads reaches an ever-greater level of intensity, the foremost challengers again showed their class, but were outshone by a standout drive from the upper midfield

Formula 1
Oct 25, 2021
The 10 greatest drives of lost legend Jo Siffert Prime

The 10 greatest drives of lost legend Jo Siffert

It's 50 years since Jo Siffert was killed in his prime at Brands Hatch. The Swiss scored just two world championship wins in a Formula 1 career spent largely with privateer teams, but showed on numerous occasions in single-seaters and in sportscars with Porsche that he could beat any of the best drivers of his era given the right equipment.

Formula 1
Oct 24, 2021
Why a misunderstood Kimi Raikkonen will thrive in retirement Prime

Why a misunderstood Kimi Raikkonen will thrive in retirement

Three years on from Kimi Raikkonen's last Grand Prix victory at Austin, he is now six races away from ending the longest Formula 1 career in history. His friend and former Ice1 Racing rally team PR man Anthony Peacock explains why there’s nobody quite like the 2007 world champion and why F1 will miss him (but he won’t miss it).

Formula 1
Oct 24, 2021
How Verstappen has become F1 champion material Prime

How Verstappen has become F1 champion material

As Red Bull and Honda go all-out for victory in the Japanese engine manufacturer’s last season of its latest Formula 1 dalliance, Max Verstappen finds himself thrust into a compelling title fight with Lewis Hamilton. He told OLEG KARPOV about his evolution into a world championship contender and why Red Bull's no compromise ethos suits him down to the ground

Formula 1
Oct 23, 2021
Why long-run times should please Red Bull in Austin F1 battle Prime

Why long-run times should please Red Bull in Austin F1 battle

Mercedes has been on a roll of late in the ultra-tight fight to win the 2021 Formula 1 world championship. It started off well in practice at Austin for this weekend’s US Grand Prix, but Red Bull got closer as Friday unfolded and even seemed to find an edge in one critical area of what seems set to be set to be another close contest.

Formula 1
Oct 23, 2021
The six critical factors that could hand F1 2021 glory to Hamilton or Verstappen Prime

The six critical factors that could hand F1 2021 glory to Hamilton or Verstappen

The 2021 Formula 1 title battle is finely poised with six races remaining, as just six points separate championship leader Max Verstappen from seven-time champion Lewis Hamilton. In such a closely-fought season, the outcome could hinge on several small factors playing the way of Red Bull or Mercedes

Formula 1
Oct 22, 2021
Can Whitmarsh appointment help Aston succeed where its F1 rivals failed? Prime

Can Whitmarsh appointment help Aston succeed where its F1 rivals failed?

Aston Martin owner Lawrence Stroll is determined to make the group a billion-dollar business. MARK GALLAGHER analyses his latest play – bringing former McLaren team principal Martin Whitmarsh into the fold

Formula 1
Oct 22, 2021