Formula 1 posted more promising financial figures for the second quarter of 2021 compared to 2020, but there remains work to do.
Income alone was far improved for Formula 1 from April-June, with $501m generated across a period when seven races took place, although a loss of $36m has been recorded.
But at this stage in 2020, Formula 1 brought in a mere $24m with no racing action due to the global pandemic with a loss of $122m posted, representing good financial progress for the series as it continues to recover from the pandemic.
A total of $308m was distributed between the 10 teams in the 2021 second quarter, one year on from when the teams received no revenue due to the Covid-enforced delay to the season.
There is still $119m to find before Formula 1 is back at the revenue levels seen in the second quarter of 2019 before the pandemic hit. But while Formula 1 is not yet back to full strength financially, it is certainly on the road to recovery.
“There were seven races held in the second quarter of 2021, compared to no races held in the second quarter of 2020 due to the COVID-19 pandemic,” said Liberty Media.
“Fan attendance continues to be assessed by relevant government authorities on a race-by-race basis.
“A very limited number of fans were in attendance and there was no hospitality at races in the second quarter.
“While final decisions are pending for most upcoming events, fan capacity increased beginning in the third quarter and hospitality resumed operations beginning with the Austrian Grand Prix on July 4.
“Primary F1 revenue increased in the second quarter with growth in race promotion, media rights and sponsorship fees.
“This was due to the recognition of race-specific and season-based income with seven races held in the second quarter of 2021 compared to no races in the prior year period. Media rights fees also benefited from growth in F1 TV subscription revenue.”
“Formula 1 is delivering across the board – on the track, for our fans, teams, partners and investors, and has done an impressive job steering through the 2021 calendar,” added Greg Maffei, Liberty Media president and CEO.
Formula 1 CEO Stefano Domenicali is also delighted with the progress Formula 1 is making, citing the capacity crowd at Silverstone and the first ever sprint qualifying as examples.
Formula 1 continues to adapt to ensure the 2021 season runs smoothly and further major hurdles may be around the corner.
Several events scheduled for the second half of the campaign, such as the Turkish, Japanese and Brazilian GPs, remain under threat.
“Formula 1 is having an incredible season and the drama on the track is resonating with fans worldwide,” said Domenicali.
“The battle for the Championship is intense and very close, evoking memories of some of the sport’s greatest rivalries of the past.
“We are seeing increasing numbers of fans tune in at home and it is great to see the fans returning to the races, with a sell-out crowd at Silverstone of 356,000 across the weekend marking one of the largest fan events in the world since COVID.
“We were very pleased with the first sprint event and look forward to the next one in Monza, and we continue to prove, despite the challenges presented by the pandemic, that we can adapt and find solutions for the remainder of the season.”