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After the end of the PANDEMIC: Will FORMULA 1 still be as we know it now?

The coronavirus pandemic has postponed this year's Formula 1 season indefinitely. This will have major financial consequences for the teams. Even for Formula 1 only, so we can rightly ask ourselves, will we still have such Formula 1 as we know it now in the future?

Photo: HB Press

A new coronavirus pandemic has grown into a real tragedy. Number deaths from day to day rising sharply, the peak of this pandemic is far from reached. The world has literally stopped. In view of this formula 1 understandably pushed into the background and it would be very unusual if at that time drama took care of more royal class of motorsport, which we adore and experience. In formula 1 at the same time he is not only on forced leave, moreover, he is fighting for own future. Will it this season sooner or later started, it is still unclear. How much will it be new calendar covered races, too. But here it is much more.

Formula 1 before the great financial crisis

Franz Tost, head of the AlphaTauri team, points out that the current coronavirus crisis is also about the survival of Formula 1 and not just teams.

Franz tost, team boss Alpha Tauri, is in an interview with colleagues from Motorspot-Magazin.com explained the whole the extent of the crisis, which rules in Italy. Although the team from Faenza is not one of the big ones, but so far they have not had to worry (financially) about their own future, because they have a big brother Red Bull. But this year it’s different. “If we don’t take any races this year, I’m sure all the teams will have financial problems. This is about survival. We need to see how Formula 1 can survive at all.”V of the past we were used to it smaller teams they always had to fight for survival, but this time it is different, because for survival they are they also fight big.

If the races are canceled, are also dropped fees organizers. One third of the total revenue of Formula 1 it comes from fees. The second third from money from television rights, where it also threatens big outageif this year less races, or in the worst case scenario none. The last third revenue, however, comes from sponsors, VIP tickets, own TV productions and both lower series Formula 2 in Formula 3. Of course, this source is also highly dependent on race cancellation. A little more than half of the total remuneration of Formula 1 is divided between the teams.

This time, not only the smaller teams are dealing with the consequences of the financial crisis, but also the big Formula 1 players are now turning every euro twice. - Photo: HB Press

The key of division is complicated because they exist here historical payments, performance bonuses and ranking design championship. It's a system very dishonest and deprives smaller ones private teams, which large corporations do not help with filling the coffers. For smaller teams, that means often more than half the money their budget comes from Liberty Media. We can only imagine what happens if v this pot majority owner of commercial rights no more money. This can only mean the funeral of small teams.

Will the concerns pull the emergency brake?

But at the moment they are not just smaller teamswho care about their own survival. Also big Formula 1 players they suddenly become very obedient. Aside from the fact that they are losing money from Liberty Media, manufacturers have in their own houses completely different problems. Concern Daimler is already before the crisis with coronavirus accepted savings packageswhich are heavy billion. Automotive industry is in serious crisis at the moment. Daimler, Renault in Red Bull, big players Formula 1, they have to look at every euro. Also Ferrari is not exempt here. Future manufacturers in Formula 1 is more uncertain than it has been for a long time. Because it expires at the end of this year Concorde agreement, would be the easiest for everyone take a decisionto get out of Formula 1. Already without a crisis coronavirus it was questionable if all the concerns would also be from the year 2021 further committed to the royal class of motorsport.

The probability that we will see Formula 1, as we know it, even after the end of the coronavirus crisis is not particularly high.               

Concerns such as Daimler (Mercedes) and Renault are having more important problems at the time than Formula 1. No one can rule out that the coronavirus crisis could lead to the step of large manufacturers stepping out of the royal class of motorsport - Photo: HB Press

Pri Mercedes in Renault they have now major problems such as Formula 1. Also at Red Bull they will probably ask themselves if they can stand up current economic situation still afford the luxury of funding two teams. Thus we come to the realization that some are shaking because they are depend on large manufacturers, others are shaking because they could have a current crisis took the financial basis. Chances are we will Formula 1, as we know it, also seen after end of the coronavirus crisis, is not exactly large. S by rescheduling the policy in freezing of certain parts the race car was made only a tiny step, which represents a drop of water on a hot stone.

Because of the coronavirus, not only has Formula 1 survived, in fact, almost the entire world has survived. And the consequences that will follow cannot be imagined today - Photo: HB Press

In doing so, we need to remember the words again Franza Tostastated at the beginning: "These measures only help if we still have 10 to 15 races this year. If there are fewer or none at all, then this is too little to recoup the costs incurred. Then the teams have to sit down at the table to agree on serious action. And then it won’t be about freezing some parts, but we need to see how Formula 1 can survive at all.“And it could have consequencesthat you still have today we cannot imagine.                        

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