Formula 1 CEO and Executive Chairman, Chase Carey has disclosed a far-flung probability of no racing this year, though he added that the sport does have the resources to overcome that. He said that they’re in conversation with investors on how to handle the loss of income in case they’re not able to run a season this year. But he accentuated, “We are progressively confident, although there are no assurances that we will have a championship season in 2020.”
Carey, while on a conference call with shareholders said, “COVID-19 had had a substantial impact on Formula 1 and we are trying to adjust in copious ways”.
According to figures, released by Formula 1, income is shown to have fallen by 84% in the first four months of 2020; its revenue this year was USD 39 million compared to USD 246 million in the same period in 2019. These figures reveal the strain F1 is going through, with all of the sport’s cash flow facing interferences, including the lack of income from broadcasting rights.
The franchise is, however, looking towards hosting 2 races, void of any spectators in European circuits, this July. He said that he believed in the possibility of having a championship series of 15 to 18 European races, beginning in August and into September, before heading to Asia, the Middle East, and North America, concluding in December.
Carey said hopefully, “We expect the European races to be devoid of fans.” He supplemented further that he was weathering at getting teams into races without the risk of proliferating Coronavirus. He was hopeful at the notion of allowing enthusiasts to be present at F1 at the end of the year and that he was more and more optimistic about the number of locations that would want to host a race this year.
Liberty Media Group, the owner of F1 provided the sport an extra 1.4 billion US dollars in liquidity, through a series of internal transactions, to deal with the effects of the ongoing pandemic. F1 has made some maneuvers in the last few months to condense expenditures for teams, as COVID-19 emerged.
Formula One is the highest class of professional car racing in the single-seater category, which has been taking place in various road courses in the world. Automobile manufacturers compete in it with purpose-built racing cars as a means of marketing their brand to the masses, by winning in competitive racing.
Ever since its inauguration in 1950, there has been a championship season every year, but as with other sports, it has been affected by pandemics. 10 races in Australia and Bahrain have been canceled by this season since March this year.