William’s F1 future may be in doubt as a result of the worsening of the coronavirus crisis. This crisis is causing a financial burden on Williams as less races means less revenue for the team.
Just as the excitement was at its peak for the new F1 season to begin, there came the news of the cancellation of the Australian Grand Prix followed by
Since the highest percentage of incomes comes from race participation for smaller teams, they are likely to be hit the worst. These teams do not earn much from sponsors. Claire Williams believes the future of Williams Racing in F1 may be a doubt due to the increasing financial burden that the coronavirus crisis is causing.
Highlights: Is William’s F1 Future in Doubt as a Result of the Coronavirus Crisis
- Impact of Grand Prix Cancellations Due to Coronavirus
- Can Smaller Teams Like Williams Bear the Financial Burden?
Jean Todt Explains How Coronavirus Affects Future of 2020 F1 Season
The positive testing of a McLaren team member this morning caused the cancellation of the Australian Grand Prix. To take precaution, 14 other McLaren team members were placed in quarantine. The worsening of the coronavirus situation day by day has resulted in the Bahrain and Vietnamese Grand Prix to be postponed as well.
The fluidity of the coronavirus situation resulted in several critical authority members of F1 being questioned about the rest of the scheduled races. FIA President, Jean Todt, explained his take on the coronavirus situation. He told the media that with advice from the World
“Protecting people first. Together with Formula 1, the Bahrain Motor Federation, the Vietnamese Motorsports Association, and the local
promoters,postponing both the Bahrain and Vietnam Grand Prix, as with the Australian Grand Prix, was the only possible decision given all of the information currently available to us.”
William’s F1 Future in Doubt Due to Coronavirus Crisis
Such statements are not good news for smaller teams like Williams who receive most of their revenue from races. William’s deputy team principal, Claire Williams, raised her concerns over the issue. She said that if events are cancelled, then Formula 1 will not keep the hosting fees, which is shared by teams and Liberty. Consequently, other income streams could also be hit if other races are cancelled. Although she said it was the right call to cancel the race, she also said that the race cancellation will result in a financial burden on her team. Williams said,
“There’s also the consideration around if we don’t go to races, then what happens with prize fund money? Does that then decrease, which obviously would be incredibly difficult to manage? And I suppose at the moment, we’re just hoping that that is not the case. And obviously, we’re having conversations about insurance if it is the case, but it’s not an easy situation to manage.”
In conclusion, as the coronavirus situation gets worse day by day, financial management becomes increasingly difficult. The primary reason is that all teams receive a high amount of revenue from race participation. However, it is important to note that small teams like Williams will face a far greater financial burden. This is because the highest percentage of income for smaller teams comes from race participation. Williams’ future could be in doubt if the situation continues to worsen.