---
title: "Formula 1 Teams Lose $2M for Every Race Axed"
description: "And that figure could be much, much higher for leading teams like Ferrari and Mercedes-AMG."
date: "2020-04-21"
modified: "2020-04-21"
authors:
  - name: "Jerry Perez"
    job_title: "Deputy Editor"
    link: "https://www.thedrive.com/authors/jerry-perez"
url: "https://www.thedrive.com/accelerator/33096/formula-1-teams-lose-2m-for-every-race-axed"
categories:
  - "F1"
  - "News"
  - "Racing"
---

# Formula 1 Teams Lose $2M for Every Race Axed

![](<https://www.thedrive.com/wp-content/uploads/images-by-url-td/content/2020/04/AP_19333366626583.jpg>)
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Despite the towering sums of money moved by the [grandiose Formula 1 circus](<https://www.thedrive.com/accelerator/32883/heres-how-formula-1-has-changed-its-rules-to-endure-the-coronavirus-shutdown>) during any given year, the pinnacle of motor racing is nothing but a fragile player in a humongous and complex organism called the world economy. This means that when things are good in the financial sector, F1 thrives, but when things are down—like right now due to the COVID-19 crisis—things get quite rough. How rough? About $2 million per race rough.

AlphaTauri team boss Franz Tost explained to [*Motorsport.com*](<https://www.motorsport.com/f1/news/cancelled-races-cost-teams-2m-tost/4783085/>) the fragility of a Formula 1 team that's been forced to sit on the sidelines for multiple races, further revealing the cost of missing a Grand Prix.

"If we don't drive a grand prix, it will cost one and a half to two million," Tost told the racing publication.

While most folks would think that staying put at HQ and not traveling to remote parts of the world—[even while having a considerable payroll](<https://www.thedrive.com/accelerator/22168/behind-the-shadowy-billion-dollar-payouts-of-f1-nascar-and-indycar>)—would generate great savings for the team, the reality is that sponsorship contracts don't award teams any considerable income unless they're out there racing and promoting the brands.

"The contracts are designed in such a way that we lose revenue proportionately if races are not run, because the agreed amount is then reduced," added Tost. "If nothing comes in at all year round, it will be a very critical matter. If you don't get any income at all, it's obviously a disaster economically."

The Italian squad formerly named Scuderia Toro Rosso is just one example of the toll that an unexpected health and financial crisis can have on a global sport like Formula 1. And while AlphaTauri is seeing up to $2 million in losses per Grand Prix missed, it's safe to assume that bigger teams with considerably bigger sponsorship contracts are losing out much more.

For example, [Scuderia Ferrari's funky and somewhat secret-ish contract with tobacco giant Phillip Morris](<https://www.thedrive.com/accelerator/22168/behind-the-shadowy-billion-dollar-payouts-of-f1-nascar-and-indycar>) was estimated to be $150 million per year. If that sum were to apply in 2020 and divided by 22 races, it could possibly mean that Ferrari is missing out on nearly $7 million per Grand Prix, and that's just from *one* sponsor.

"If we start racing in July, we'll get off with a black eye," Tost explained. "If that's not the case, things will get very critical.”

It's unclear when the series will get back to real racing, and holding events [without actual fans on the stands](<https://www.thedrive.com/accelerator/32953/formula-1-2020-season-could-start-in-europe-without-spectators-this-july>) has been one of the ideas proposed to get things jumpstarted sooner rather than later. But with COVID-19 still wreaking havoc worldwide and global travel not possible or seriously frowned-upon, chances are that we'll have to be [complacent with virtual racing on YouTube](<https://www.thedrive.com/accelerator/33075/indycars-pagenaud-storms-to-virtual-motegi-victory-byron-wins-second-straight-nascar-iracing-round>). As for the teams missing out on precious sponsorship dollars—who knows?

## Author
Jerry is responsible for upholding The Drive's ethos as an audience-first, enthusiast-driven car blog that serves up industry-leading news, reviews, culture, and motorsport coverage. Overseeing a staff of writers and editors from his home base in Indianapolis, he helps curate the site's daily rundown, as well as its medium- and long-term content strategies. Jerry joined The Drive in 2018 as a writer and worked as news editor and managing editor before becoming the deputy in 2023. As a lifelong car enthusiast and racing fan, Jerry believes that all cars are cool, but the people behind the machines are even cooler. This belief often gives The Drive a slightly different focus from most other car sites, where we explore the humanity behind the machines. When he's not obsessing over the day's biggest stories or hanging out at a race track, Jerry can be found behind the wheel of a car, most likely sharing a laugh with his teenage son or daughter.

### Author social links  
[Instagram](<https://www.instagram.com/drive_jerry/>)