F1 | Formula 1 income is bouncing back as spectators are coming back to races
Last season has been wiped out by the pandemics, and the correlated incomes for F1 with it. The comeback of spectators to races in 2021, however, is reversing this trend
Fans are the fuel of Formula 1 and we all know that. However, the pandemic provided a financial and therefore numeric evidence of this fact. The first part of the 2020 season witnessed the outburst of the COVID’s pandemic and no race took place.
It means that no income has been generated, not only during the lockdown but in the whole season too, as fans weren’t allowed to take part at the events for safety reasons. Even though the data are much inferior of the last “normal” season, the 2019 one, 2021 is bouncing back to some income, thanking the possibility to let spectators crows on F1 benches again, even if not at their full-capacity yet.
Numbers tell us that in the last three months, from April to July, 2021 season generated seven Grands Prix plus an income of $501m against last year’s $24m. Even if the money arrived is still inferior to the expectations of a “normal” season, considering the same three-month period counting seven races in 2019, which provided $620m, it is clear than spectators are boosting the financial side of this sport.
In the end, 2021 currently faces a loss of 36m of dollars against the same three-month wage of $122m loss in 2020.
The same great difference is given if we look in the 10 teams’ pockets. In the second quarter of last year, firms were shut down so gained zero dollars, this year they shared an income of $308m between them, a great result even if it still quite far from 2019 one, presenting $335m.
These numbers are comforting but they are going to improve massively during the season, as even more fans are going to be allowed to attend at the races.
"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. Fan attendance continues to be assessed by relevant government authorities on a race-by-race basis. “– stated Liberty Media.
"A very limited number of fans were in attendance and there was no hospitality at races in the second quarter. – it continues - While final decisions are pending for most upcoming events, fan capacity increased beginning in the third quarter and the 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."
⚡️ FAN POWER RANKINGS ⚡️
— Formula 1 (@F1) August 6, 2021
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Liberty Media CEO Greg Maffei expressed that the company is very happy of the improvement made by F1 division.
"Formula 1 is delivering across the board, - he said. – On the track, for our fans, teams, partners and investors, and [it] has done an impressive job steering through the 2021 calendar."
