20 million less in revenue for Formula 1 after the cancellation of Imola
The Liberty Media Group, owner of Formula 1, recently released its quarterly figures for the second quarter of the year. These figures show that F1 revenues have dropped by $20 million compared to the same period last year.
The main cause of this decrease in income is obviously the last-minute cancellation of the Imola Grand Prix in May. As a reminder, the Emilia-Romagna GP, planned to be the sixth on the calendar this season, was canceled after a deadly episode of severe flooding that hit the Bologna region.
Therefore, only six Grand Prix races took place in the second quarter of 2023, compared to seven in 2022. It is this one less event that the Formula One Group is attributing this decrease to, according to Liberty Media. As explained in the document, « primary revenues for F1 make up the majority of F1’s revenues and come from race promotion, media rights, and sponsorship », but « the growth in race promotion and sponsorship is being offset by a decline in media revenues ».
From 744 to 724 million dollars
To translate into numbers, these primary revenues were $628 million in the second quarter of 2022 and only $618 million in the second quarter of 2023.
In addition to this, other Formula 1 revenues decreased from 116 to 106 million dollars during the same period, bringing the total revenues to 724 million dollars in the second quarter of 2023, compared to 744 million last year.
Also, the report specifies that « the expenses related to the planning of the Las Vegas Grand Prix, amounting to 7 million dollars, have been included in the selling, general and administrative expenses. »
This GP, which returns to Sin City after 41 years, is organized directly by Liberty Media, which has invested no less than 500 million dollars in it.
Normally, promoters pay an entry fee to Formula 1 for the organization of a Grand Prix. For example, Monaco offers 13 million euros, while countries like Saudi Arabia or Azerbaijan spend around 60 million. These payments represent 25 to 30% of total revenues for F1.
