The news of the Formula One cash bailout was trending on social media as American conglomerate Liberty Media provided substantial financial support to the F1 in a time of crisis. According to reports, the Formula One cash bailout amounts to a staggering $1.42 billion as financial aid for teams and race promoters that have been deeply affected by the coronavirus outbreak. The coronavirus pandemic has wreaked havoc on sporting events all across the globe causing massive Formula One financial losses in the process.
Formula One announced the suspension of the season at least until the summer. However, with the cancellation of F1 races, teams have furloughed hundreds of staff members due to the cash flow drying up. Despite no F1 races, Formula One would still have to pay off their loans, fund teams as well as race promoters to keep the sport at bay from a total collapse. Due to the lack of revenue from F1 races the Formula One financial losses were stretched to a maximum.
The $1.42 billion injection of cash termed as the 'Formula One cash bailout' comes as a massive boost for F1 to save the future and teams of the sport. The monetary aid comes from multi-business industry Liberty Media, who also own F1. It is reported by the Daily Mirror that Liberty Media transferred one of their businesses away from the Formula One Group into a different stock to provide the Formula One cash bailout. The $1.42 billion Formula One cash bailout could go a long way in mitigating the Formula one financial losses and also restore faith in the future of the sport.
The coronavirus pandemic has halted nearly all sports across the globe and almost laid waste to Formula One entirely until the inflow of cash from Liberty Media. Liberty chief Greg Maffei revealed that the company had planned for the event of no F1 races during the entire year despite F1 chief Chase Carey working towards 15 and 18 races as an optimistic figure. Even if F1 action does take place later this year, Formula One is likely to host the events behind closed doors to prevent a second wave of the outbreak.