In the midst of overwhelming economic losses caused by the COVID-19 pandemic, seriously affecting competitions and sports teams, Formula E has been able to circumvent this situation and improved its 2020 numbers compared to previous courses.
The electric series was very close to reaching profitability, and unlike 2019, where the red numbers stood at 10.5 million euros, they only lost 62 thousand euros last year despite difficulties generated by the virus.
With a significant spending adjustment of 7%, Formula E managed to mitigate the drop in revenues from 161.5 million to 142.8 million. In addition, a 50% reduction in the surcharge agreed with the promoter group’s parent company has also been reached, from 100.5 million to 67.1 million euros in the last year.
Due to severe damage caused by the coronavirus, which forced the competition promoted by Spanish businessman Alejandro Agag to complete the season in August, with the last races in Berlin, the competition decided to extend the closing date for the last fiscal year from July 31 to September 30.
Formula E detailed on its balance sheet that the expenditure reduction was achieved with adjustments between staff and administrative commitments. In 2020, the tournament had 97 people on its structure, with a total expenditure of 14.6% more compared to the previous year. This item includes fees for the company’s executive directors.
Revenues and Sponsorship
This was the least variable area within the accountability revealed by the electric category. Regarding racing and service provision, it fell by only 1.3%, accounting for 56 million euros. The item for other miscellaneous income, on the other hand, plummeted by 66%, from almost six million to two million euros.
Among the outstanding news at the end of the period, Formula E was able to maintain loyal sponsors, among them Swiss industrial group ABB, included in the name of the race; and other important partners, such as Allianz, Bosch, Antofagasta Minerals, DHL, Enel, Heineken, Hugo Boss, Julius Baer, Michelin, Modis, Moët & Chandon, Saudia and Tag Heuer.
Written by I Jhonattan González