Potential liquidity problem Liberty Media: 'More than £200 million has to go back'

06-04-2020 19:21
by GPblog.com
F1 News
Potential liquidity problem Liberty Media: 'More than £200 million has to go back'

Liberty Media will have to return some £200 million in entry fees now that eight Grands Prix have been cancelled. The organizers and promoters of the GP's are entitled to this now that the Formula 1 circus has not (yet) travelled to their circuit.

All Grands Prix until halfway June have been cancelled at the moment and it is still uncertain if the king's class of motorsport will be able to start in Canada. Much points to the fact that Formula 1 will not be raced before Hungary (02 August).

Huge amounts of money

The average fee for organising an F1 event last year was £22.8 million. The fee for six of the races held in distant locations, such as Bahrain and Azerbaijan, is another 33 per cent higher. According to The Daily Mail, Liberty Media now has to return some £182 million to race promoters. In addition, the owner of the Formula 1 should also provide purchasers of special tickets, such as VIP packages, with a refund. The cost of this is estimated at £24 million. It should be noted that the Grands Prix may still be overtaken this year and that the fees will have to be paid by the promoters.

In February, CEO Chase Carey warned that if this kind of income is lost, Liberty Media may have to draw on its reserve for debt. The money has been invested in new projects for a long time and is not available on a bank account. Liberty has not responded to a request for comment on this report.

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