F1 organisation puts staff on furlough as bosses take pay cut

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.

F1 organisation puts staff on furlough as bosses take pay cut

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.

shares
comments
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
How Lotus uncovered, then squandered its last ‘unfair advantage’ Prime

How Lotus uncovered, then squandered its last ‘unfair advantage’

Cast in the mould of its founder Colin Chapman, Lotus was powerful and daring but flawed – as it proved through further soaring peaks and painful troughs into the 1980s. DAMIEN SMITH examines a game-changing era

Formula 1
Jul 27, 2021
The core problems Yas Marina’s long-awaited tweaks won't address Prime

The core problems Yas Marina’s long-awaited tweaks won't address

OPINION: Changes to the layout of Abu Dhabi’s circuit aim to reverse the trend of insipid Formula 1 races there - the promoter has even described one of the new corners as “iconic”. And that, argues STUART CODLING, is one of this venue’s abiding failings

Formula 1
Jul 26, 2021
How Ferrari offered Callum Ilott what Red Bull couldn't Prime

How Ferrari offered Callum Ilott what Red Bull couldn't

Last year's Formula 2 runner-up Callum Ilott could be on his way to becoming the first Briton to contest a grand prix in an Alfa Romeo since Reg Parnell in 1950. But, says Oleg Karpov, the Ferrari Driver Academy protege is having to temper his ambition at the moment – outwardly at least…

Formula 1
Jul 25, 2021
The signs that point to F1's rude health Prime

The signs that point to F1's rude health

OPINION: Formula 1's calendar might still be facing disruption as the pandemic affects travel but, says Mark Gallagher, the business itself is fundamentally strong thanks to the epic rivalry taking place on track and the consistent arrival of new sponsors.

Formula 1
Jul 24, 2021
The unexpected benefit of F1's sprint race repeat Prime

The unexpected benefit of F1's sprint race repeat

OPINION: Formula 1's sprint race trial at Silverstone drew mixed feedback on Saturday, but there remained the true test of how it would impact Sunday's Grand Prix. While fans were busy marvelling at Fernando Alonso's progress, a key lesson was being learned that would directly contribute to the dramatic lap-one clash at Copse the following day

Formula 1
Jul 22, 2021
The off-track considerations that led to Hamilton/Verstappen F1 shunt Prime

The off-track considerations that led to Hamilton/Verstappen F1 shunt

OPINION: Formula 1’s 2021 title fight turned ugly last weekend when Max Verstappen and Lewis Hamilton collided at the start of the British Grand Prix. Verstappen thankfully walked away unharmed, but this had been a clash long-since coming.

Formula 1
Jul 21, 2021
British Grand Prix Driver Ratings Prime

British Grand Prix Driver Ratings

The 2021 British Grand Prix will live long in the memory for the dramatic clash between Formula 1's two title protagonists, which opened the door for other drivers to capitalise. One did so in spectacular fashion, while others fluffed their lines

Formula 1
Jul 19, 2021
How Leclerc almost defied Hamilton after Silverstone clash Prime

How Leclerc almost defied Hamilton after Silverstone clash

A poor start for Valtteri Bottas and the lap one clash between Formula 1's 2021 title protagonists gave Charles Leclerc a surprise lead in the British Grand Prix that he almost held to the end. Here's how the Ferrari driver came close to a famous victory, ultimately denied by a recovering Lewis Hamilton three laps from home

Formula 1
Jul 19, 2021