Vettel's departure from Ferrari cost $90m to Formula 1
The departure of Sebastian Vettel, who will no longer wear Ferrari colors at the end of the 2020 season, led to a massive loss of money for Formula 1.
As previously announced, Ferrari will not restart with Sebastian Vettel at the start of the 2021 Formula 1 season. An important fact is the massive cost that involved his exit from the team, in fact Formula 1 lost $ 90 million.
Formula 1 was purchased by the Liberty Media company at the end of 2016 that decided to keep it on the stock exchange. This led F1 to be exposed to market fluctuations with shares which, due to the lack of start to the season, suffered a severe hit in March and April. Although this has not entirely influenced the "FWONK" shares. In fact, the driver market also has suffered a strong shock.
This Tuesday, Ferrari announced that the agreement with Vettel for the following season was not successful and that the German driver will no longer race for the Maranello team.
As stated by FormulaMoney, which specializes in covering the Formula 1 business, the price of the latter's shares decreased by 4.5%.
We also know who will be the replacement chosen to replace Sebastian Vettel. On Thursday the team announced that Carlos Sainz Jr will be the new Ferrari driver. The Spaniard, in fact, has signed a two-year contract alongside Charles Leclerc who will be his new teammate.
After the news, the market share price increased by 3.1%.
We Tweeted yesterday that #F1 should have never been floated because it is influenced by too many external factors. Here's more proof:
— Formula Money (@FormulaMoney) May 14, 2020
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
In addition, FormulaMoney expressed itself regarding the situation of the drivers market that is proceeding: “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!”
So the net money loss is 1.4% or $90 million for Formula 1.
