When Liberty Media purchased Formula 1 in 2016, growing pains were expected as a new company took over and established its plan for the future.
It was recently revealed that the prize pool for F1 dropped $43 million in the last quarter alone, and Red Bull’s Christian Horner said it might face two years of decreasing prize pool money before it stabilizes.
However, Horner said he isn’t concerned and thinks F1 can overcome the growing pains.
“You have to invest in the business to accumulate and I think Liberty has had a big learning year,” Horner said via Motorsport.
“They have done a season now, they have applied the right specialists in the right areas, and they are forming their game plan for 2021.”
F1 CEO Chase Carey said the sport needs a more exciting product than what was on display in the season finale at Abu Dhabi. Horner agreed, and he said the only way to attract new sponsors is to have a more entertaining race.
“To attract sponsorship you’ve got to have an attractive product, and unless you have got an attractive product sponsors don’t come,” Horner said. “There is a lot of cars out there.
“We have been able to attract great brands because of what we do off track as well as on track and I think F1 is not in anywhere near as rude health as it was 20 years ago when teams were making profits. There were some great brands on the cars.”
While it’s understandable that the sport is having growing pains, it’s hard to imagine it can continue if its losing money at that rate.
Carey and Liberty Media are having to spend more to attract new fans and sponsors, and while it’s hurting the sport now, he’s hoping it will be beneficial in the long run. And for Formula 1’s sake, he better be right.