- Franz Tost speaks about the losses of money behind each missed race.
Due to COVID-19, the Formula 1 season has been temporarily suspended and the consequences are paid by the teams that are facing a decline in income regarding commercial rights.
This drop has frightened everyone including the team principal of the Italian team Alpha Tauri who has mobilized the accounting department to understand the amount of money lost due to each race suspended.
In an interview, Tost said: “The contracts are designed in such a way that we lose revenue proportionately if races are not run, because the agreed amount is then reduced. If we don’t drive a Grand Prix, it will cost one and a half to two million.”
Tost’s fear lies in the fact that this shortage of money can persist only in the short term and therefore if the season doesn’t restart in the summer, the teams could have serious income problems, so much to speak of economic disaster.
If we start racing in July, we’ll get off with a black eye. If that’s not the case, things will get very critical. If nothing comes in at all all year round, it will be a very critical matter. If you don’t get any income at all, it’s obviously a disaster economically.
“The FIA and Liberty are working to resolve this situation and Franz Tost explicit that the important thing to do is to change the F1 platform to find a long-term sustainable solution.”
“We cannot assume that we can continue everything normally at the present time. It’s impossible to keep spending at this level.”
In addition, concerns grow when it comes to business and sponsors. In fact Tost stated: “We need to see what races we do, what the revenue is going to be and what the sponsors are going to be be.
“Will they stay, will sponsors drop out? What is the whole economic situation like? Only then can we talk about a cost cap.” He concluded.