Financial breathing space for Formula 1 after adjustment of the $3 billion loan

30-06-2020 08:16
by Editorial Team
F1 News
Financial breathing space for Formula 1 after adjustment of the $3 billion loan

Formula 1 has been given some breathing space now that a deal with Liberty Media has been postponed. The loan of about three billion dollars has been slightly adjusted in the conditions, so that F1 can survive these difficult times.

The loan and in addition a 500 million dollat credit which the F1 has at its disposal a specific amount of repayment. Normally the F1 must adhere to a certain leverage and a ratio of debt to profit. This has not been the case in recent years.

F1 provides an arrangement

Normally Formula 1 makes enough profit to meet all these requirements, but due to the corona crisis this is no longer the case. F1 therefore had to take action, in order to not be able to fulfill the agreement. It has now been agreed that the leverage and debt versus profit ratio will only take effect from the 1st of January 2022.

''This new flexibility with our partners, ensures a stronger balance sheet of the company and gives us more liquidity to survive this difficult period," says Chase Carey to Motorsport.com. F1 will have to invest a lot to get the sport back on track. Now that fans are not welcome, F1 doesn't get money from the circuits, but they have to pay to rent the circuit.

Check out the latest news

You will be logged out and redirected to the homepage