Williams boss Claire Williams says it is « critical » her team races this year, underlining the economic reality of the coronavirus crisis for Formula One’s small teams.
All 10 F1 teams receive revenue from the sport in the form of prize money and, in some cases, additional payments based on their historic standing or previous success in the sport. In a normal year, the majority of that prize money fund is generated by race-hosting fees and broadcasting rights — both of which are under threat as long as F1 is unable to race this season.
The most optimistic plans for the 2020 season could see a return to racing in July, but a start date is entirely dependent on governments lifting restrictions on movement and giving the events a green light. F1 has also warned that if it is not possible to go racing by October, the entire 2020 F1 season would likely be called off.
Speaking to Sky Sports, Williams said the situation raised serious questions for her team, which survives mainly on prize money revenue and sponsorship.
« It is incredibly worrying at the moment regarding what is going to happen, because the situation is so fluid, » Williams said. « We just can’t foresee into the future whether we will have 15 races, eight races or zero races. Clearly we hope it is more, rather than less. »
She admitted that it was critical to Williams’ business model that some racing takes place this year.
« It is an incredibly difficult environment that Formula One finds itself in right now, » she added. « But that’s shared by many businesses around the world due to this unprecedented situation.
« That is why we have spent so much time locked away in so many meetings to make sure we do everything we need to, to make sure all of us come out of this, at the end of this year, unscathed. A big part of that is when we are able go racing again, particularly for a team like ours — we are one of the few true independents left.
« We don’t have the backing that the majority of our competitors have up and down the grid. For us, going racing is actually critical this year, but as I have said, only when it’s safe to do so. »
Toro Rosso team principal Franz Tost said teams stand to lose as much as €1.5 million to €2m per cancelled race.
« 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, » he told Motorsport.com.
« 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. »
https://www.espn.com/f1/story/_/id/29075979/return-racing-year-critical-williams
