F1 teams to lose money over coronavirus situation

MARCH 14, 2020

F1 teams to lose money over coronavirus situation

Gunther Steiner, Mexican GP 2019
© RV Press

F1 teams are expecting to take a financial hit from the unprecedented coronavirus situation.

While the big teams have eye-watering budgets, Claire Williams admitted she is worried about the financial impact not being able to race will have on her Oxfordshire based team.

That is because about half of the small teams' budgets comes from official F1 income, which is derived in significant part from race promoters' fees.

"If a grand prix pays more than $25 million,, we lose money," said Haas boss Gunther Steiner. "Below that, the loss is offset by the savings of not racing."

Racing Point team boss Otmar Szafnauer said: "We assume that the pot will be smaller."

Many believe the farcical delay in announcing the postponement of the Australian GP was essentially because of an argument about financial liability.

"The cancellation has many consequences, including financial," confirmed Paul Little, chairman of the Australian Grand Prix Corporation.

"There are many things to clear up with Formula One."

Prior to the cancellation, six-time world champion Lewis Hamilton rolled his eyes at the notion that "cash is king" in F1, even when health should be the priority.

F1 CEO Chase Carey denied that money considerations were behind the cancellation delay, but Austrian TV presenter Ernst Hausleitner applauded Hamilton for his courage in speaking out.

"That Hamilton dared to open his mouth shows the champion he is," the ORF presenter told Osterreich. "The others stood like lemmings, trusting in authorities who ultimately failed."

(GMM)

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