Formula 1’s management body has put staff into furlough and asked most of its senior figures to take pay cuts as the coronavirus crisis continues to hit the sport.

Almost half of the F1 organising body’s staff have been placed into furlough by using the United Kingdom’s government scheme which will pay staff 80% of its wages during the postponement period.

F1’s key management, including CEO Chase Carey and motorsports head Ross Brawn, have also take pay cuts of around 20% as the sport adjusts to the delay to the 2020 season with no revenue coming in through races or other events for the foreseeable future.

F1 has followed McLaren, Williams and Racing Point in using the British government’s furloughing options, with each driver and senior management from the three teams also taking pay cuts.

The sport is currently in its summer shutdown period, brought forward from August, which will last until the end of April but could be extended further amid the uncertainty on the start of the 2020 season due to the COVID-19 pandemic.

Currently, the new F1 season is provisionally set to start on June 14 at the Canadian Grand Prix but that date is looking unlikely due to travel restrictions, with a mid-July start rumoured to be favourable assuming the health crisis improves by then.

F1 bosses are facing huge financial losses with the prospect of cancelling races due to the loss in hosting fees, estimated to be around $20-25m per race, while its broadcasting rights revenue will also take a significant hit if the 2020 season drops below 15 races.

F1 chief Carey has already targeted 15-18 races this season and is eager to start the season during the summer as soon as it is safe to do so.

 

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