Paris -
Despite discussions to start Formula One activities in June being already advanced, F1 president Chase Carey warned this Friday that there is still "a remote possibility of not racing in 2020."
The first 10 races of the season have been postponed or cancelled due to the COVID-19 pandemic, resulting in a huge financial loss. The iconic Monaco Grand Prix was cancelled for the first time in 66 years.
Figures released by Liberty Media, the company that owns F1, showed revenues of $39 million for the first quarter of the year, compared to $246 million for the same period last year. F1 has a debt of $2.9 billion, which has been offset by the production of extra liquidity through internal transactions.
The economic impact increased due to the cancellation of the Australian and Bahrain GPs that were scheduled for March, which meant giving up ticket sales and broadcasting rights.
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"We are actively engaged with financial institutions around a credit," Carey said during a conference call with investors on Thursday. "They have been very understanding as we work together to identify potential changes... that allow us to reach potential scenarios, including the remote possibility of not racing in 2020."
Carey indicated that F1 has placed 50% of its workforce on unpaid leave, while the teams work together to further reduce the F1 budget cap, cut for the 2021 teams to $175 million.
"We now expect to move forward with a much lower cap" for next year, Carey said.
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Several reports set that figure at $145 million, but the teams have not yet reached an agreement. McLaren is pushing for a lower amount, but Ferrari has expressed concern that reducing the cap to $145 million will have a strong impact on its staff.
"The goal is to launch our season for the weekend of July 4 and 5 in Austria and it is likely that we will also compete in Austria on the weekend of July 11 and 12," Carey explained.
"We are well advanced in the creation of additional races in Europe for early September," he added. All of this in case the season takes place. (D)