The Formula One Group has reportedly placed half of its 500 employees on leave in face of the coronavirus crisis, while chief executive Chase Carey has taken a 20 percent pay cut.
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The global pandemic has disrupted lives and economies around the world, with Formula 1 not immune to the crisis.
Brought to a standstill, the sport has seen its three revenue streams – race fees, television rights and sponsorship fees – potentially reduced to ashes for 2021 while FOM’s overhead and running costs, estimated at $381m last year, remain.
Williams puts employees on temporary leave amid COVID-19 crisis
F1 also has yet to disburse to the teams part of their earnings from last year which are paid out on a quarterly basis, an amount indicated at $1,012,000,000 for 2019.
The prospect of a shortened season would equate to significantly lower revenue and to a big hit to F1’s bottom line, a state of affairs which is clearly reflected in F1’s share price which has lost over 50% of its value over since the onslaught of COVID-19 in early February.