Colossal financial losses for F1 and Liberty Media in 2020

The pandemic is causing Liberty Media to lose a lot of money. Owner of the F1 World Championship since 2017, the American media company has released its financial report for the year 2020.

In detail, F1 revenues plunged: 44% less revenue generated between 2020 and 2019, a year in which Liberty Media had made a profit.

A disrupted calendar that brings in less

Main explanation for the losses, racing revenues have decreased, with a modified 2020 calendar, behind closed doors, except for three races: Russia, Eifel, and Portugal.

Not enough compensation in this context for Liberty Media, which also highlights the lower revenues generated by adding replacement races to the calendar. In short, going to Portimao or Imola did not bring in enough profit for F1 in 2020.

No compensation with broadcast rights

Fans stayed at home and it shows on the F1 financial statement: 55% of the revenue was generated by the broadcasting rights of Formula 1 races.

The sector is nonetheless in deficit: revenues from contracts with channels have decreased. Logically: channels such as TF1 have revised their contract. The first French channel did not broadcast its 4 races, contrary to what was planned.

She settled for 2 Grand Prix in 2020 (Portugal and Emilia-Romagna), compared to 4 in 2019 (Monaco, France, Italy, and the United States. The Liberty Media group even mentions in its report concessions made to broadcasting partners.

Also decreasing are advertising and sponsorship money. Sponsors who have not been able to commit as they did in 2019, with races behind closed doors, without hospitality in the paddock.

Despite everything, the CEO of Liberty Media is not worried about F1. According to Greg Maffei, the financial situation of F1 is very strong.

To recover, Liberty Media has aimed high for 2021 with 23 races on the calendar, still against the backdrop of a health crisis.