Ferrari CEO Louis Camilleri revealed that Ferrari expects to lose big money in the year 2020, especially as F1 will suffer a big loss of income due to the coronavirus and the impossibility of organising as many races as planned.
“F1 is without doubt the business that will affect our results in 2020 in the hardest way,” said Camilleri, “and also one of the most difficult to predict by far. The original calendar had 22 races.”
“The FIA and Formula One Group are now predicting a maximum of 18 races, many without spectators. This clearly means a drastic reduction in revenue generated by the commercial rights holders as well as sponsorship income, which are our two main sources of revenue.”
It can certainly be described as a crisis at Ferrari, with estimates that by end of year the manufacturer could lose over a staggering €1 billion in revenue.
To be specific, Ferrari has now revised its annual revenues downwards from an estimated €4.1 billion to €3.6 billion. Due to containment, the second half of the year is also expected to be very weak for Ferrari further decreasing revenue, with the only positive point being that the decline “is normally contained this year.”
The Scuderia is one of the teams reluctant to lower capped budgets, but these losses could convince the Italian team to accept the $145 million annual budget, which Ross Brawn has assured they are about to adopt.
“We hope that such a cap will make Formula One more economically sustainable for all its participants while ensuring that it remains the best championship in the world and a source of technical progress in motoring innovation and technology”.
A new chapter begins: today production restarts at #Ferrari headquarters. The health and safety of our employees and suppliers remains top of mind thanks to our Back on Track programme.
— Ferrari (@Ferrari) May 4, 2020
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