Banking on Speed: The Money Machine Powering the World’s Most Expensive Sport.

When we think of Formula One, we usually think of the intense rivalries, the fast cars, the celebrity-studded paddocks. Something much bigger is happening in the shadows. While Lando is fighting Verstappen, turning F1 from the least-engaged major sport in 2017 into a sport with movies being made about it in 2025. The money told the same story: revenue for F1 grew from $1.8 billion in 2017 to $3.4 billion in 2024, while operating income reached $492 million.

The fate of Formula One changed when it was acquired by Liberty Media in 2017, as CVC partners sold their stake due to a lack of appeal among young audiences, which sounds ironic today. Liberty Media focused on growing the audience and viewership by introducing new circuits, such as Miami and Vegas. They also launched a new D2C platform to stream races (F1TV). The major driver of F1’s popularity was none other than… you guessed it—DRIVE TO SURVIVE, the Netflix docuseries that transformed the sport into a global phenomenon

So let’s dive deeper into what changed and how a major sporting brand like Formula One actually makes money.

First, let's talk about the largest source of revenue, and the most obvious one, the sale of media rights. With the sport’s growing popularity, more broadcasters are willing to pay higher sums to show George Russel and Max Verstappen crash into each other.

Next comes race promotion fees, where circuits and even governments pay Formula One to host a grand prix in their country. When we read Instagram posts like The Belgian Grand Prix has been extended to 2031, it indirectly says that the Belgian government, the Belgian racing circuit (Circuit of Spa-Francorchamps), and the Formula One group have finalised a deal where the circuit and the government have agreed to pay an annual fee to F1 to host a grand prix at their venue.

Sponsorships are the next significant source of revenue. Various luxury brands like Rolex, LVMH, and Moet & Chandon pay considerable sums to be associated with F1 and be visible during, before, and after races.

Next comes the “others” classification in the revenue Formula One. This includes revenue from hospitality, like the F1 paddock pass. Additionally, subscription revenue from F1TV is also included under this stream. Merchandising and licensing, for example, Puma annually pays F1 to be its official merchandising partner. Additional revenue comes from freight services, which involve transporting teams' equipment and cars.

Here is the revenue breakup for Formula One in 2024:

·      Streaming rights: 32.8%

·      Sponsorship Deals: 18.6%

·      Race Promotion fees: 29.3%

·      Others: 19.3%

No matter who wins the 2025 World Drivers’ Championship, Liberty Media and the F1 group are going to be the real winners.

Authored by: Laksh Karrn Ranglani