Liberty Media has confirmed that Formula 1 has raised $92 million [£68.7million] profit in 2021, rebounding from massive losses in 2020 following the start of the Covid-19 outbreak.
The sport lost nearly half of its revenue when the pandemic hit, with $1.145 billion raised in 2020 compared to $2.022 billion the previous year. As a result, its overall operating loss was $386 million in 2020, although Liberty CEO Greg Maffei insisted their finances were strong enough to deal with such a hit. the time.
Despite the loss, the sport still limited the damage of what could have been after a quickly arranged 17-race schedule was put in place that season, albeit mostly without fans.
But the return of crowds in 2021 has fueled a recovery in the sport’s finances, as well as a one-time payment the sport received after it canceled a contract to stage a race in Vietnam – which had been slated to debut on the schedule in 2020, but other factors helped the sport’s gross revenue hit $2.136 billion, with net income of $92 million coming even after paying team prizes.
“Fan attendance continued to be assessed by the relevant government authorities on a race-by-race basis throughout the year, with restrictions easing as the year progressed and fan attendance significantly higher from the third quarter of 2021 compared to the prior year,” Liberty said. The media wrote when confirming their financial results.
“Race promotion revenue increased due to five more events being held in 2021, including more non-European races, some of which saw the return of capacity crowds, while limitations on fan attendance the previous year led to occasional changes in the contractual terms of organized races.
“Full-year race promotion revenue also benefited from a one-time settlement recognized in the first quarter related to the cancellation of a race originally scheduled for 2020.
“Media rights revenue increased for the full year driven by higher broadcast fees due to improved terms of certain new and renewed broadcast agreements, other contractual rate increases, strong growth in F1 TV subscription revenue and the effect on the prior year of one-off changes in contract fees resulting from the pandemic and associated schedule disruptions.
“Sponsorship revenue increased due to revenue from new sponsors and the impact of more races held as well as pandemic-related reductions in sponsorship revenue recognized in the prior year.”
The continued gradual relaxation of Covid-19 rules around the world could allow fan attendance to increase even further in 2022 which, combined with a record schedule of 23 races on offer, could bring even more revenue to the sport. this season.