McLaren’s chief Zak Brown highlights that F1 is at a crisis point. If immediate action is not taken, as many as four teams could be lost due to lost income.
McLaren’s Chief, Zak Brown, has warned F1 that the coronavirus pandemic can result in a crisis for teams. He has cautioned F1 that four teams could be lost as a result of a loss of income. Race income will severely decrease as 9 races until June have been postponed or cancelled.
Highlights: Several Teams Face Financial Struggles with Loss of Income:
- Coronavirus Pandemic Leads F1 to a Financial Crisis.
- McLaren, Williams and Racing Point put Staff on Furlough.
- F1’s Financial Situation Assessed by Zak Brown.
Race Fees Crucial for Teams Survival
The coronavirus pandemic has taken the world by storm with cases rising day by day. As a result of increasing cases, the activity of sports is reducing. As a result, sporting events like F1 are not able to hold races.
Since race fee is the biggest percentage of income for most teams, it seems the smaller teams in particular are having financial struggles.
Putting Staff on Furlough and Pay Cuts Options to Cope with Financial Struggles
McLaren, ROKiT Williams and Racing Point are three such teams facing severe financial struggles. In order to cope with this struggle, they have put staff on furlough. Moreover, for Racing Point, both Lance Stroll and Sergio Perez are taking voluntary pay cuts to reduce the burden.
Zak Brown Highlights F1 Crisis
McLaren’s chief executive, Zak Brown, highlighted that F1’s current financial situation is at a crisis. Brown stated that as many as “four teams” could disappear if F1 does not handle this situation the correct way.
2021 Budget Cap A Concern
Zak Brown added that the loss of race incomes was not the only concern as next year’s budget cap adds to the stress on teams. While referencing to the 2021 budget cap of $175m, Brown said that “F1 is in a very fragile state.” Brown said,
“If we don’t make an aggressive enough budget cap and some people feel they have to top up this year and have no chance of getting it back, then they ask themselves: ‘Why are we in it?’”
The coronavirus pandemic no doubt has resulted in havoc across the world. As cases continue to rise, the stress only increases. F1 teams would hope that Formula One comes up with a feasible solution for their financial struggles as lesser teams will only be bad for the sport.
Furthermore, F1 as a whole could be in danger if some teams decide to quit the sport. Hence, F1 needs to come up with a plausible solution because if they do not, then that could lead to the death of F1.