Things are going well on paper, but now it turns out that even teams that seemed relatively safe request advances from Liberty Media to cover their earnings downturn. These are Renault, AlphaTauri and Racing Point. It is striking that these teams in particular are going through some trouble.
AMuS published a list of teams eligible for emergency aid. Those are (in addition to the unnamed Williams) Haas, Alfa Romeo, Racing Point, AlphaTauri and Renault. The last three names are particularly striking. With their sponsorships and shown dedication to Formula 1, these teams did not seem to be a problem so far.
Renault is highly ranked in the championship and would have enough factory support from France, while AlphaTauri is under the wing of Red Bull and Dietrich Mateschitz. Racing Point is backed by billionaire Lawrence Stroll, who even recently bought Aston Martin, boosting Racing Point’s availability of funds by about 200 million dollars. It is special that these teams are calling in financial aid.
Liberty Media has 2.5 billion in cash
Normally, the 2019 prize money would not be paid out until the end of this year. The chimney must continue to smoke, but the teams are currently unable to drive. Liberty Media therefore offered the teams advances. These unusually early advances are only distributed in April, at the start of the second quarter.
This comes from 2.5 billion dollar pot of money that was made available to deal quickly with problems and get rid of bills. These provisions already include 1 billion dollars from Formula 1 itself.
Liberty Media is hit hard by the corona crisis
And that is still not enough: people are looking for more money. As of May, the publicly traded company goes around with the cap to raise 750 million dollars. Then new investors can sign up to “pay off the internal group loan to the Formula 1 group.”
Liberty Media recently released its first quarter operating results, which were not very bright. Net profit before taxes and other charges fell from a 59 million profit to a loss of 42 million dollars.
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