F1 suffers financial LOSS with revenue impacted by disaster

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F1 suffers financial LOSS with revenue impacted by disaster

The cancellation of the Emilia Romagna Grand Prix hit the sport's coffers

Dan Davis

Sunday 6 August 2023 14:57

Formula 1's revenue for the second quarter fell to $141m (£110m), with their funds impacted by the cancellation of the Emilia Romagna Grand Prix.

The event was scheduled to take place at the end of May but severe flooding in the region in northern Italy saw the race postponed and then cancelled.

Due to the tragic landslips and loss of life, F1 officials were reluctant to place further strain on the emergency services, especially with thousands left homeless.

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On a recent earnings call, Brian Wendling, chief financial officer of Liberty Media, delved further into the financial results.

Stefano Domenicali insisted F1 is capitalising on "growth momentum"

Imola disruption

"Given Imola was cancelled on the Wednesday of race week, the majority of the race-related costs with regard to planning, logistics, and setup had already been incurred," he said.

"On a full-year basis, we estimate the impact to adjusted awaited up from the cancellation of Imola is modest at less than $20m."

The Chinese Grand Prix was also cancelled earlier this year due to the Covid-19 restrictions imposed in the country, leading the sport to hold just six of the eight scheduled races. In addition, they were also unable to provide replacements.

Income from freight and hospitality was hit as a result, though race promotion revenue was not affected.

Furthermore, a reduction in races lowered F1's media rights revenue but this was offset in part by new subscriptions to online service F1 TV.

Stefano Domenicali, F1's chief executive, said: "Formula 1 is capitalising on our growth momentum and our fans are engaging with the sport across traditional, digital and social media platforms.

"We congratulate Red Bull on their record-breaking performance season-to-date, and are thrilled to see the gaps closing across the rest of the grid to produce exciting rivalries on track."