Formula One puts some staff on furlough, executives take pay cuts

Ross Houston
April 9, 2020

Formula One decides to furlough almost half of its staff with chairman Chase Carey and senior management taking pay cuts until end of May.

In last year's financial results F1 declared total costs of $381m (not including the payments to teams), of which $147m was listed as "selling, general and administrative expenses".

"We are now discussing with F1, the FIA and all the teams a budget cap reduction, but we should not forget when doing that exercise somehow that we've got different structures, we've got different assets".

The motorsport has already had to cancel the first 8 Grands Prix of this season which could lead to a large shortfall in hosting, sponsorship and broadcast fees.

"F1 is certainly trying to organise the best season, maybe starting early July if that would be possible but we can not have any confirmation at the moment". I think there are still analyses that are required to make the right decisions.

"So I think when discussing a budget cap we should not forget that we've got different situations and it's important that we find a common ground somehow that is fitting to the different situations".

With no racing taking place, and no certainty over when the delayed 2020 season can begin, the organisation is reducing its people power.

"We know from the sporting regulations that to have a World Championship you need at least eight races, but everyone is trying to look for more than that", the Ferrari team principal said.

"I think we should avoid really being emotional at the moment", he said. I think we can not only act in the interests of a single team, in the interests of Ferrari, but really looking at the wider picture and wider situation.

It waives the organizing costs of terminated races, and also as the occasion complete drops listed below 15 broadcasters will certainly need to be reimbursed on a gliding range. "I think whatever it will be, it will be important to be flexible and make sure we can have good races for the fans".

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