How Formula 1 Makes Money

Formula 1 is more than just a race—it's a spectacle. But what about the business machine behind it? Let's talk F1 Economics.

Discover the secret sauce behind its rise in popularity and the business model that fuels this high-speed phenomenon. Buckle up!

In this video, we cover:

🏁 The F1 Ecosystem
💰 How Formula 1 Group Makes Money
📺 The Netflix Effect
📈 The Liberty Media Era

Key Points:

🏎️ The role of FIA, Formula One Group, Teams, Sponsors, Broadcasters, and Race Promoters.
🌍 Expansion of the sport with a record-breaking 24 races.
💼 Revenue breakdown: Race promotions, Media Rights, Sponsorships, and more.
🎥 The impact of Netflix's "Drive to Survive" on F1's popularity.
📊 Financial insights and prize money distribution.
🎬 Hollywood's investment in F1 and upcoming projects.
📈 Liberty Media's strategic transformation of F1.

Join App Economy Insights founder Bertrand Seguin as he dissects Formula One Group's financials, business highlights, and future prospects.

🔔 Hit the subscribe button and notification bell to make sure you don't miss our next deep dive into the world's most fascinating businesses!

💬 Join the conversation & stay up to date

📝 Resources
▪ More charts and analysis from App Economy Insights:

* Please note any statements made here reflect Bertrand's opinions and not any other organization.

[Metier]

These videos as well as substack articles are fantastic. Please keep making more!

[afitpacklife]

Interesting. Does F1 also fund F2 - F4 teams? Or are they self sustainable?

[tumirantao]

Does Formula 1 also fund feeder series, including F1 Academy? How would this affect the income statement

[Tacko]

So the cost cap is what, 150 million? I didn’t keep up. And RBR gets 140 million. They basically spend 10m on racing, not counting Max’ or Adrian’s salary. Checo pays his own way through merch. Nice setup.
Haas is doomed in this picture. They spend more by default so they can’t get the car to that level, ever. Unless they get a golden sponsor, which they won’t get cause of poor performance. It’s basically an Elon Musk economy: start off rich and you’ll get even richer. Start off poor and you’ll stay poor.