Ferrari admits 2020 Formula 1 loss ‘in the high tens of millions’. F1 teams are set to receive less prize money.

Louis Camilleri, the CEO of Ferrari and chairman of Philip Morris International, admitted that the Italian company’s loss of revenue from Formula 1’s delayed and restructured 2020 championship will be “in the high tens of millions”, on a day in which Ferrari released its Q2 earnings.

Not surprisingly taking into consideration the COVID‑19 pandemic, Ferrari’s net revenue for the Q2 period in 2020, encompassing April through June, was €571m, down from €984m on the same spell 12 months ago.

Of that its ‘Sponsorship, Commercial and Brand revenues’, in which its Formula 1 activities are counted – as well as museum and in-store traffic – were down to €83m from a 2019 figure of €131m. Formula 1 teams are set to receive less prize money this year on account of fewer grands prix taking place and Louis Camilleri put a loose figure on the expected hit.

“Formula 1 is – this year will be, in terms of the P&L [Profit and Loss], the biggest hit we face because of the reduction in the revenues we receive from the commercial right holder as well as reductions in sponsorships given the reduction in races.” – the Ferrari CEO explained – “So it’s clearly in the high tens of millions in terms of the hit. We’ll see in terms of next year. It should be better because hopefully, by next year, we’ll be back to a full race schedule, and we will get the necessary revenues in terms of sponsorship and from the commercial rights. So it’s a bit difficult to compare 2020 to 2021. But definitely in 2020, it is a very sizeable hit as we had anticipated in early May.” – he added.

Louis Camilleri echoed recent comments made by Chairman John Elkann that Ferrari will have to wait until 2022 before regularly fighting for victories.Ferrari holds only fourth in the Constructors’ Championship after the opening four events of 2020.

“There’s no denying that we’re facing a very difficult season with a car that lacks performance on several levels. Our competitors and Mercedes, in particular, are incredibly strong and hats off to them. I can assure you that the team is working day and night to improve the car. I believe we have a very strong talent pool, which we will continue to strengthen. And I have every confidence in Mattia and his team going forward. As John Elkann said, it will take time, but the focus and determination to meet our ambitions remains intact.” – Louis Camilleri concluded.