Postponement of F1 racing causes big loss for many countries

Postponement of Grand Prix races in Australia, Bahrain, Vietnam and China is creating financial burden for stakeholders.

With more than US $ 150 million invested in broadcasting rights, Liberty Media is in big trouble. Shares of this company fell more than 50% since January 20. Liberty Media shares are down more than half since the end of January.

For racing teams, the risk of financial loss is present when the sponsor for each stage faces cost pressures. Big teams lose money, and small teams may fall into a situation where they cannot repay their debts.

The financial situation deteriorated to the point where 9 out of 10 F1 teams agreed to leave the adjustment rules for the 2021 season to 2022 amid concerns about operating costs.

According to the German newspaper, during the online meeting earlier this week, all the team except Scuderia Ferrari agreed to push the adjustment of F1 until 2022. Only Scuderia Ferrari asked for a review of all the details of this delay before considering support. However, the latest information of Motorsport said Scuderia Ferrari agreed with the proposed change after meeting with the team Thursday morning (March 19).

F1 2021 season will race with old cars

In order to reduce costs during the transition period, Motorsport said race team leaders proposed to blockade the development of complex and expensive parts such as chassis and gearbox, developing only aerodynamics only until the end of the year 2021.

Stopping the development of the chassis also means that the 2021 season will only run cars that have been developed by 2020, instead of using entirely new vehicles.

F1 was delayed, causing a headache for stakeholders

Meanwhile, F1’s $ 175 million annual budget will be used for next year’s event. This is very popular with the rich and promising racing team in the context of their budget is affected. All leaders of 10 racing teams will meet again to unify the proposed change made on March 19. Regardless of the decision, this year’s F1 race was beaten by the corona virus.