Formula 1 owners Liberty Media have revealed the severity of 2020 by announcing an $877million drop in revenue for last year.
The Formula 1 Group business was heavily impacted by the Covid-19 pandemic which led to the cancellation or postponement of the first 10 grands prix.
The season finally managed to get going in early July, and F1 managed to produce a 17-race calendar across 24 weekends over the second half of the year.
But the overwhelming majority of those races were behind closed doors, while those that were able to welcome spectators did so on a limited basis.
It has resulted in Liberty Media posting a stark set of figures that includes the revenue drop, leading to an operating loss of $386m compared to being $17m in credit in 2019.
Revenues in 2019 were $2,022m but fell to $1,145m in 2020, with primary revenue falling by $700m from $1,664m to $964m.
Primary F1 revenue represents the majority of the sport’s revenue and is derived from race promotion fees, broadcasting fees and advertising and sponsorship fees.
Last year, the three revenue streams comprised 12 per cent, 55 per cent and 17 per cent respectively - totalling 84 per cent - of all F1 revenue.
This led to a dramatic decrease in team payments which fell from $1,012m in 2019 to $711m last year, a drop of 30 per cent.
Explaining the dramatic figures, a Liberty Media financial statement read: "Primary F1 revenue declined in the full year.
"Race promotion revenue decreased as fans were prohibited from attending all but three races, which led to one-time changes in the contractual terms of the originally scheduled races that remained on the 2020 calendar and limited revenue generated from the replacement races that were added.
"Broadcast revenue decreased as the altered schedule triggered lower fees pursuant to the contractual terms of certain broadcast agreements, as well as other one-time contract negotiations that took place in 2020.
"Advertising and sponsorship revenue declined as F1 was prevented from delivering all elements of a typical sponsorship offering due to the cancellation of certain events to which contracted sponsorship inventory-related and the limited activities available at the races, including hospitality.
"This led to a number of one-time changes in sponsorship fees for 2020, and in some cases the deferral of revenue related to undelivered sponsorship contract rights into future years."
With regard to the team payments, Liberty added: "Team payments decreased in the full year driven by the contraction in F1 revenue and the associated impact on the calculation of variable elements of team payments.
"Team payments in 2020 included one-time fees paid to teams upon signing the 2021 Concorde Agreement."