Formula 1
Formula 1
03 Jul
-
05 Jul
Event finished
10 Jul
-
12 Jul
FP3 in
15 Hours
:
48 Minutes
:
42 Seconds
17 Jul
-
19 Jul
FP1 in
6 days
31 Jul
-
02 Aug
FP1 in
20 days
R
70th Anniversary GP
07 Aug
-
09 Aug
FP1 in
27 days
R
Spanish GP
14 Aug
-
16 Aug
FP1 in
34 days
R
Italian GP
04 Sep
-
06 Sep
FP1 in
55 days
R
Tuscany GP
11 Sep
-
13 Sep
Next event in
62 days
R
Mexican GP
30 Oct
-
01 Nov
FP1 in
111 days
R
Brazilian GP
13 Nov
-
15 Nov
FP1 in
125 days
R
Abu Dhabi GP
27 Nov
-
29 Nov
FP1 in
139 days

F1 organisation puts staff on furlough as bosses take pay cut

shares
comments
F1 organisation puts staff on furlough as bosses take pay cut
By:
Apr 7, 2020, 6:25 AM

The Formula 1 organisation has followed the route taken by teams and placed around half of its staff on furlough as the COVID-19 crisis continues to have an impact on the sport.

In addition, senior staff are to take a 20% pay cut, with CEO Chase Carey likely to take more of a voluntary reduction.

F1 is facing a financial meltdown in 2020 – and the prospect of virtually no income should the season be lost completely.

It forfeits the hosting fees of cancelled races, and as the event total falls below 15 broadcasters will have to be refunded on a sliding scale.

However even with limited turnover it still has to pay the teams the money they earned last year, and which is deferred. In 2019 the 10 teams shared $1012m between them.

The company also has to continue to pay its running costs. In last year’s financial results F1 declared total costs of $381m (not including the payments to teams), of which $147m was listed as “selling, general and administrative expenses.”

Staff levels have risen dramatically since Liberty Media’s takeover at the start of 2017, with over 400 people located either at the head office in central London or at the Biggin Hill facility in Kent, where the TV operation is based.

F1 joins British-based teams McLaren, Williams and Racing Point in confirming that a proportion of its staff are on furlough.

Next article
Cost cap talks dominate F1 bosses and teams debate

Previous article

Cost cap talks dominate F1 bosses and teams debate

Next article

Norris: Reverse Silverstone layout would be cool but tricky

Norris: Reverse Silverstone layout would be cool but tricky
Load comments

About this article

Series Formula 1
Author Adam Cooper