Confirmation that Sebastian Vettel is leaving Ferrari at the end of this season has cost Formula 1 $90 million.
Bought by Liberty Media in late 2016, the company decided to float Formula 1 on the stock exchange.
That left the sport vulnerable to fluctuations in the market with the shares taking a massive hit in March when the season did not begin, and falling even further in April as the hiatus and the world’s financial crisis continued.
But it seems that is not all that affects the ‘FWONK’ share prices.
Driver changes also have an impact.
On Tuesday Ferrari confirmed that Vettel would be leaving the team at the end of this season after the two parties realised they no longer had a “common desire” to continue working together.
According to FormulaMoney, who ‘specialise in covering the business of F1’, F1’s share price dropped 4.5%.
48 hours later Ferrari announced that Carlos Sainz would replace Vettel at the end of the year, signing a two-year deal to partner Charles Leclerc.
The share price rose 3.1%.
However, that was a massive $90m loss for Formula 1.
We Tweeted yesterday that #F1 should have never been floated because it is influenced by too many external factors. Here's more proof:
Vettel leaves Ferrari: $FWONK -4.5%
Sainz joins Ferrari: $FWONK +3.1%
Both prices from the same time. That's a net loss of 1.4% or $90 MILLION… pic.twitter.com/5M5trjZDbw
— Formula Money (@FormulaMoney) May 14, 2020
FormulaMoney added: “Can’t remember another year when so many F1 teams announced before the season began that their lead drivers are leaving.
“Looks like they think there will be no racing in 2020 as you don’t want to use drivers who are going to a rival.
“Not a good time to be a $FWONK stockholder!”