Formula 1

Drivers Take Pay Cut In A Bid To Save Costs

 

The coronavirus pandemic has put a halt to all planned races of the year. As at the time of this writing, no race has been held for this season, and there is no indication that any could be held anytime soon. This means that the teams are not making any money but are losing.

In a move to prevent further money loss, drivers of various teams have opted for pay cuts to allow their teams to save money. The first team to start this was McLaren after they forced some portion of their staff to take an enforced leave while the others who stayed would have their salary cut.

The drivers, Lando Norris and Carlos Sainz, volunteered to have their salary cut. Although McLaren did not reveal the number of people they sent on leave, they announced that the move was part of their plan to protect jobs “in the short term”. It would also allow them to save during this period. The plan would allow them to have all employees back when the economy recovers.

Team Williams stated on Monday that some of their staff would be going on enforced leave till the end of May. This is after their drivers, George Russel and Nicholas Lafiti have taken a 20% cut in their salary since the 1st of April, following the move by McLaren.

Members of senior management also followed suit. Racing Point made a similar move, forcing some staff on leave and the drivers asking for a slash in their salary.

All these are efforts to reduce the economic hardship the sport could suffer as a result of the pandemic. Teams are spending their reserves as no money is coming in at this time.

Maintaining a high number of workers, most of whom are doing nothing at this point is not economically sound at this moment. Slashing salaries and sending some workers on leave would allow these teams to save some money, no matter how small.

Already, teams are discussing if the proposed budget for 2021, at $175m, could be reduced to $150m or even lower. No one knows when the pandemic would end, and teams are trying all they can to make sure they recover quickly.

 

 

Written by: Leon Osamor

About the Author


Written by DafaNews

DafaNews brings you the most highlighted news in the world of Sports. It serves you up-to-date matches, scores, live streams, fantasy games and quizzes. Our news covers prestigious leagues and events – Premier League, Champions League, World Cup and many more.

Related Post
Share
Published by
DafaNews

Recent Posts

Valencia pleads with La Liga for postponement of game against Real Madrid

Valencia have pleaded with the La Liga authorities to postpone its match with Real Madrid… Read More

October 31, 2024

Dubois gets permission to face new challenger

Daniel Dubois has been given the go-ahead from the International Boxing Federation (IBF) to fight… Read More

October 31, 2024

Manchester United faces a brick wall ahead of Amorim’s appointment

Manchester United has seen their attempt to appoint Rúben Amorim as Erik ten Hag's successor… Read More

October 31, 2024

Randal Kolo Muani set to leave PSG

Reports have emanated from France that Randal Kolo Muani could leave Paris Saint-Germain for as… Read More

October 31, 2024

Dortmund chief Sebastian Kehl drums support for Nuri Sahin despite early season woes

Nuri Sahin has come under fire after Borussia Dortmund's start this term, but has received… Read More

October 31, 2024

Chet Holmgren Shines as Thunder Defeat Spurs, Besting Rival Victor Wembanyama

In an early showdown between two of the NBA’s most promising young big men, Chet… Read More

October 31, 2024