Forbes: 'Formula 1 lends money to ailing teams to save sports'
F1 News
- GPblog.com
Formula 1 has its hands in its hair because of the coronavirus. The whole season is flat and with that there is no income for the teams that are about to fall over. However, Formula 1 has found a solution.
The business magazine Forbes reports that the Formula One Group wants to help teams to survive in the coming period. Credit rating agency Moody's already scaled Formula 1 from positive to negative, now that the races had been cancelled, but Forbes now writes that there is a lot of money open at the umbrella organization.
F1 is going to lend money
For example, the FOG would have no less than $400 million in cash and over $500 million in undrawn credit outstanding. Moody's gave Formula 1 a big chance to survive and Forbes expects F1 to use this money to bail out the ailing teams.
If Formula 1 doesn't do this, the teams will be in big trouble. The bigger teams will be able to survive longer, but the teams with less reserves will miss out on prize money and TV revenues enormously. To compensate for this, F1 wants to lend money to those teams, in order to prevent further problems for the sport.