Liberty Media has published its financial results for the third quarter of 2020, showing an overall loss of $104 million for the period.
F1’s finances have been significantly affected by the global coronavirus pandemic this season. Q1 saw the championship post revenue of just $40 million following the cancellation of the Australian Grand Prix and the start of significant calendar trouble. The biggest impact was felt in Q2, when revenues of just $24 million were recorded, as no events took place during the time.
Q3 saw the return to racing and the first 10 grands prix of the 2020 season, from which F1 has posted a dramatically improved $597 million revenue. However this still fell short of the $633 million generated during the third quarter of last year.
The disparity in terms of profit was greater still. F1 earned $44 million in the third quarter of 2019, but lost $104 million this year. The sport attributed this partly to changes in race earnings due to the inability to allow ticket sales to fans.
“Primary F1 revenue decreased mainly due to the limited race promotion revenue received since fans were prohibited at all but one race during the third quarter,” said F1 in a statement.
The lower earnings from fees paid by race promoters was somewhat mitigated by the increased number of races which were staged during the three-month period. This also secured income from broadcast rights and at-event sponsorship fees over the period.
But with only 17 races scheduled to take place in the disrupted 2020 season, rather than the 22 originally planned, the value of overall annual broadcasting and sponsorship contracts for the season will be lower.
“Both broadcasting and advertising-and-sponsorship revenues were lower than originally contracted,” the series acknowledged. “The altered schedule triggered lower broadcasting fees pursuant to the contractual terms within certain broadcasting agreements and also led to other one-time changes as certain broadcasting fees were renegotiated for the current year.”
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9 comments on “F1 posts $104 million loss in Q3 despite rise in revenue”
5th November 2020, 20:14
I fail to understand how F1 can lose money. What expenses do they have? Someone handling their social media and someone making the F1 Pro app, what else?
5th November 2020, 21:57
@paeschli let me sum up some of it:
1. paying the teams. Sure it is based on last years points/positions, but they do have to pay the teams something
2. cost for logistics – shipping stuff all over the world (starting with Australia, stuff was possibly on the way to Bahrain etc too. And off course the back and forth through Europe, to Russia etc).
3. Don’t forget that F1 has the production of the live feed in their own hands, so they have all the equipment and the team to do that on their pay list. And yeah, the cost for the timing app and the F1 Pro app too.
4. payments of interest on loans taken on will also go towards the cost.
The last chunk would be actually having to pay some tracks for hosting races this year.
5th November 2020, 20:53
Losing so much in Q3… Now I get it why they desperately want to change qualifying system!
5th November 2020, 21:58
And also why Saudi Arabia @huhhii!
5th November 2020, 23:03
Mmm nice little tax right off coming their way.
6th November 2020, 5:35
Must be all those masks! :-)
6th November 2020, 9:12
Better than expected, my stock has gone up.
6th November 2020, 9:54
Is it a loss or reduced revenue?
7th November 2020, 22:09
Both. Reduced revenue compared to same period last year and actual losses for the quarter.
And this year Q3 had three races than last year Q3 too, meaning less money coming I despite more races (from less ticket sales and reduced hosting fees.
Comments are closed.