Liberty Media CEO Greg Maffei says that Formula 1 has extended cash advances to several teams to help them deal with the sport's current economic downturn.
Formula 1's disrupted season, a direct effect of the global coronavirus pandemic, has put significant financial stress on several outfits which are facing the prospect of a massive collapse in revenue in 2021.
Teams rely on sponsorship revenue and income from FOM's prize fund, but both sources threaten to run dry depending on the number of races that shall take place this year.
"We're not encouraging using our cash in an unwise fashion, but we're trying to balance the operating business and its current results against the operating results of our partners in the form of the teams, who do incur large costs," Maffei explained in a conference call with Wall Street Analysts on Thursday.
"We have advanced money in advance of team payments for certain teams already. There are cases where we may do more of that. There are other things that we might do to bridge teams that might need help.
"We're certainly not viewing this as an open chequebook. We want to make sure that teams are solvent because they are part of what we need to race successfully in 2020, 2021, and beyond."
Maffei offered no insight into which teams had been the beneficiary of a cash influx, although it's likely that Haas and Williams were among the potential recipients.
Formula 1 is actively working on contingency plans for a re-build of its 2020 calendar. Maffei confirmed that starting the season behind closed doors was the most probable option.
"We really have a host of opportunities or challenges on all fronts. Chase [Carey] and his team are presented with multiple options – including until you know the timing how do you ask somebody to move an existing race in place of another race when you don't know when it's open?" he said.
"So we are watching how the opening of certain events is happening in Western Europe, in certain countries, and looking at options around that that maybe the start of the calendar.
"No guarantees yet, but that is certainly something that would be attempted."
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