Formula 1 suffered a $90 million hit to its share price this week as news emerged that Ferrari and Sebastian Vettel were to part ways, reports suggest.
As reported by Formula Money, a specialist in the business of Formula 1, the share price plummeted by 4.5%. This was counteracted by a lesser 3.1% rise following the announcement that Carlos Sainz would be filling the vacancy.
However, this still equated to a net $90 million loss, at a time when the sport has already taken damage due to the pandemic.
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
As the world faces a financial crisis, the decision to float Formula 1 on the stock exchange after Liberty Media's acquisition looks even more risky with the latest developments.
The sport is looking to get back racing in July with multiple venues setting up for events behind closed doors, with a fully-attended Grand Prix some way off at the moment.