Formula One Group is likely to provide the financial backing to enable the British Grand Prix to go ahead behind closed doors this year. F1 announced on Monday that the French GP had been cancelled and it would reschedule the start of the 2020 season for Austria on 5 July with the first few races, including Silverstone, not taking place in front of fans.

The Northamptonshire track relies upon the income from racegoers in order to pay for the race. Without it the track would be unable to meet either hosting fees or the expense of putting on the race if it is allowed to take place by the government.

However, F1 and Silverstone have publicly committed to attempting to hold at least one race and potentially two at the circuit this year. Although both declined to make any official comment on the financial arrangement they have reached, it is understood that the hosting fee is to be waived and that F1 will meet the costs incurred by the circuit, in effect renting it from its owners, the British Racing Drivers’ Club. Last week F1’s owners, Liberty Media, made financial arrangements to free up cash in order to cover expenses such as this over the forthcoming months.

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F1 and Silverstone are also considering hosting two races on consecutive weekends at the circuit as the sport attempts to make up for the 10 meetings that have been called off this year. Stuart Pringle, Silverstone’s managing director, said they were working closely with F1 and the department for Digital, Culture, Media and Sport to address how the grand prix, set for 19 July, could be held behind closed doors.

“Of course we want the race to happen,” he said. “The challenge is this is a situation that is unfolding and quite what the scale, the costs associated with that, the logistics, the complications … all of that is still being worked through.

“It’s not as simple as me giving a yes or no answer or a figure. It’s actually understanding the scale of the problem. We’re totally optimistic we can help Formula One with a decent season, and one that we can play a meaningful role.”

Silverstone renegotiated their contract with F1 in 2019, signing what they described as a “sustainable deal” for five years, having initiated a break clause two years earlier because of the level of hosting fees. The race is regularly the best attended of the season, with more than 140,000 fans present last year. Despite losing the income from spectators, there is clearly confidence that financially Silverstone will be able to weather the storm caused by the coronavirus outbreak.

“We were an early adopter of the furlough scheme because we had to close our business,” said Pringle. “We need to get back as a business but we can’t do it if it risks killing people. We are going to need support from our bank but there aren’t many businesses that won’t and they are supportive. We are very confident we can ride this out, it’s just going to set us back.”

Hosting fees are one of the three largest sources of income for the sport and losing them means it will have to absorb a major financial hit, especially if F1 has to extend the financial arrangements to other circuits such as Spa and Monza. Almost all European races rely to a great extent on the income from spectators. However, holding races, even behind closed doors, goes some way to meeting commitments to broadcasters and sponsors.

Facebook Twitter Pinterest Last year’s Austrian Grand Prix at the Red Bull Ring. Photograph: Lisi Niesner/Reuters

The French GP was set to take place on 28 June but its cancellation has been long-expected after the country’s president, Emmanuel Macron, banned mass gatherings until July. F1 has been in extensive planning and discussions to consider how and when the season may begin and Austria, where lockdown restrictions have already been relaxed, was expected to be the first meeting.

“We are now increasingly confident with the progress of our plans to begin our season this summer,” said Chase Carey, the chairman of the F1 Group. “We’re targeting a start to racing in Europe through July, August and beginning of September, with the first race taking place in Austria on the 3-5 July weekend.”

Carey also indicated that potential plans to extend the season into January 2021 had not been pursued. “September, October and November, would see us race in Eurasia, Asia and the Americas,” he said. “Finishing the season in the Gulf in December with Bahrain before the traditional finale in Abu Dhabi, having completed between 15 and 18 races. We will publish our finalised calendar as soon as we possibly can.”

Silverstone (@SilverstoneUK) ✍️An update from our Managing Director, Stuart Pringle about the Formula 1 Pirelli British Grand Prix 2020. pic.twitter.com/APIXq8F2OS

Austria is also in discussions about hosting two races in succession. Should the Red Bull Ring host two races on 5 and 12 July, a week off would likely be required if Silverstone were also to hold two, shifting the first British Grand Prix to the 26 July. The circuit has said it is willing to move the event. The Belgian Grand Prix, too, will almost certainly have to move from its proposed date of 30 August, because public gatherings are banned in the country until the end of that month. F1’s new calendar is expected to represent a complete rescheduling of the remaining events.