Formula 1 Revenues – Covid-19 hit world of commercial sports is showing some signs of recovery globally. Formula which had reported revenues of just $39Mn in 1st Quarter of 2020 has announced revenues of $139Mn for 1st Quarter of year 2021. The season has started smoothly with 3 F1 races already completed and 4th Spanish Grand Prix currently in progress.
Liberty Media stated: “Primary F1 revenue increased [to $159m] in the first quarter with growth in race promotion, media rights and sponsorship fees. This was primarily due to the recognition of race specific and season-based income with one race [the Bahrain Grand Prix] held in the first quarter of 2021 compared to no races in the prior year period.
“In addition, race promotion revenue in the first quarter of 2021 included proceeds from a one-time settlement related to the cancellation of a race originally scheduled to commence in 2020. Media rights fees also benefited from growth in F1 TV subscription revenue.”
A total of $21m was generated from ‘Other F1’ revenues, largely derived from freight and hospitality revenues.
The Formula1 Season was completely disturbed by Covid-19 and that clearly showed in their financial performance. Formula 1 last year suffered huge losses. According to the results declared last year F1 suffered losses of $386 Million in FY20, in comparison to a $17m profit registered in 2019.
Formula 1’s overall revenues in 2020 dropped by 44 per cent to $1.145bn with just 17 races held. This included a marked fall in race promotion fees with that revenue stream accounting for just 12 per cent of primary revenues compared to 30 per cent in 2019.
The share of broadcast revenues rose from 38 per cent to 55 per cent of the total, but the revenues from media-rights deals were hit by rebates and fell overall. The revenue share from advertising and sponsorship was up narrowly to 17 per cent (from 15 per cent).
Formula 1 2021 Season: Lewis Hamilton leads the leaderboard
|2||Max Verstappen||Red Bull||1||61|
|6||Sergio Perez||Red Bull||0||22|
|8||Carlos Sainz Jr.||Ferrari||0||14|