'Formula 1 gets negative rating, but can recover after the crisis'

The coronavirus affects not only the health of people, but also that of companies. Because the entertainment industry is completely at its mercy, Formula 1 is also experiencing the financial consequences of this. Credit rating agency Moody's has therefore adjusted FOM's rating.

Due to the postponement and cancellation of Grands Prix, there is currently no money coming into the management of Formula 1. Moody's has therefore adjusted the financial future prospects of the sport from 'positive' to 'negative'.

This crisis is going to cost the sport money, which should come as no surprise. However, the reviewer also thinks that Formula 1 should be able to absorb this blow, even if this season falls completely into the water. The sport is also expected to be able to become healthy again after the crisis. Their conclusion on this is as follows:

"Moody's considers that Formula One is relatively well placed to recover post coronavirus crisis, underpinned by its contracted revenue nature, strong franchise, large fan base and high cash conversion. The company might face some revenue challenge in 2021 due to the timing of TV contract renewals, as well as a weak macroeconomic backdrop. However the strength and attractiveness of the Formula One franchise provides some protection in the context of wider broadcasting market challenges."