The financial health of the Great Circus was hanging in the balance after the pandemic hit the global economy. Following the controversial Australian Grand Prix that never took place in March 2020, Formula 1 was finally able to create a calendar with 17 events, but without spectators in the stands.
Total revenue plummeted from 2,022 million dollars (about 1,800 million euros) in 2019, to only 1,145 million (just over 1,000 million euros) in 2020.
However, in 2021, despite the still persistent impact of COVID-19, a total of 22 grands prix could be held, and in many of them fans returned to the stands, for which Formula 1 managed to enter 2,136 million dollars (more than 1,900 million euros).
This figure also grew due to the one-time payment related to the cancellation of the Vietnam Grand Prix , an event that should have been held for the first time in 2020.
The disastrous $386 million loss turned into a $92 million profit in 2021 after paying all ten Grand Circus gridiron teams.
In this way, the total payments to the teams staged an impressive recovery, from 1,012 million dollars in 2019 (about 900 million euros), to 711 million in 2022 (633 million euros), while in 2021 the figure was 1,068 million dollars (more than 950 million euros).
Explaining the increase in revenue, Liberty Media made it clear that the return of fans was the main factor driving the economy last season: “Fan attendance continued to be assessed by relevant government authorities on a race-by-race basis, with restrictions being eased as the year progressed, and a larger influx beginning in the third quarter of 2021.”
“Revenue for race promoters grew as five more events were held, including non-European races, some of which saw the return of crowds, while limitations on fan attendance in the previous year led to to specific changes in the contractual terms of the grand prizes held,” the statement continued.
While Liberty Media didn’t say anything about Vietnam, it did note: “Racing revenue for the full year benefited from a one-off deal in the first quarter related to the cancellation of a race originally scheduled for 2020.”
The company that owns Formula 1 stressed that as well as earning more from event deals, revenue from broadcasts and sponsors also increased.
“Media rights revenues grew over the course from increased rebroadcasting fees, due to improved terms on new and renewed broadcast deals,” they said.
“Other contract fee increases, strong growth in F1 TV subscription revenue and the effect on fees affected by the pandemic and calendar disruptions were other factors.”
“Sponsorship income increased due to the increase in sponsors and the impact of a greater number of races held,” they settled in the statement.
