Changes to £2.3bn loan will help F1 survive “difficult time” – Carey

Formula 1 chairman and CEO Chase Carey says revisions to the terms of a £2.3 billion ($2.9 billion) loan will give the sport greater flexibility to withstand the financial trauma of the Covid-19 pandemic.

Last month F1’s commercial rights holder Liberty Media announced its revenue for the first quarter of 2020, which included two cancelled races, had fallen by $200 million. A steeper fall is expected for the second quarter in which eight races should have taken place, all of which were called off.

The sport’s owners have therefore secured changes to the financial covenant relating to a $2.9bn loan plus a £406 million ($500 million) credit facility of the subsidiary which holds its interests in Formula 1, Delta Topco Limited. “The amendment provides that, subject to compliance by Formula 1 with certain additional conditions, the net leverage financial covenant shall not apply until 1 January 2022,” said Liberty Media in a statement.

“Formula 1 remains the pinnacle of motorsport as it celebrates its 70th anniversary,” said Carey. “This new flexibility in our debt covenants, along with a strong balance sheet and ample liquidity, will enable us to weather this difficult time and we are excited to start the season in Austria on 3-5 July.”

Sunday’s Austrian Grand Prix will begin a run of eight races in 10 weeks. Further races are expected to be announced in the near future. “We return to the track with added purpose and determination with our new ‘#WeRaceAsOne’ initiative,” Carey added.

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