Ferrari CEO Louis Camilleri has revealed that the team are taking a “big hit” financially with a lack of Formula 1 racing.
That will come as no surprise as all 10 teams will be feeling the continued pinch with no prospect of racing on the horizon until at least July.
But, Ferrari’s Q1 figures have given us all a closer look into how lockdown is having a specific impact. They have recorded a 30 per cent drop in commercial, sponsor and brand revenues compared to their Q1 figures in 2019.
“Formula 1 is undoubtedly the activity that will adversely affect our results in 2020 in the harshest manner and also the one that is by far the hardest to predict,” Camilleri said in a conference call with investors.
“This clearly implies a drastic reduction in the revenues that are generated by the commercial rights holder, as well as sponsorship fees, our two primary sources of revenue.
“The hit to revenue essentially goes down to the bottom line, with some minor offsets. It’s a big hit.
“The good news is it’s confined to this year, hopefully.”
Formula 1’s managing director, Ross Brawn, confirmed on Monday that an agreement had been reached to reduce the incoming budget cap further to $145m.
Ferrari were particularly resistant to a further drop, but Camilleri can see the potential benefit of a new, lower cap.
He added: “It remains our hope such a ceiling will render Formula 1 more economically sustainable for all participants while ensuring that it remains the premier racing championship globally and the source of significant advances in automotive innovation and technology.”