How do Formula 1 Teams Make Money?

Money rules Formula 1. And the teams must need A LOT of it to have success. But how do Formula 1 teams make money? And do they even make a profit at all? And is the whole financial format of F1 going to change with the budget cap? Stick around as I dive into all the various costs and incomes of an F1 team and look at whether Formula 1 teams actually make money...

0:00 Money in Formula 1
2:11 Costs of an F1 team
3:50 Revenues of an F1 team
8:10 How much did Mercedes make in 2019?
8:55 How does each team stack up?
9:48 The effect of the budget cap
10:45 Conclusion

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Creative Commons — Attribution 3.0 Unported — CC BY 3.0

Creative Commons — Attribution 3.0 Unported — CC BY 3.0
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Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. There are certain scenes from the Formula 1 calendar where race footage is used. All rights are property of FOM. Other photos and news elements are used solely for the purpose of assisting the original content in becoming more engaging or informative. This video is not intended to cause offence and is solely for entertainment purposes. Using this video without giving credit to the original source is an offence.

#Money #Formula1 #F1

[bobdevreeze]

There has been a saying i remember from my childhood some 60 years ago. " How do you make a small fortune racing? Answer: Start with a large fortune.

[sindhusojan]

I think Ferrari spends their money on finding new ways to mess up.

[drew]

Mercedes: Spends over $145 million
FiA: Fines Mercedes for spending to much
Mercedes: Pays the fine and continues to over budget
FiA: *suprised pikachu*

[Kub]

you get on average 15-20 sponsors:

Haas 2021: *crying cat thumbs up*

[Jaxymann]

"if a team or driver has a terrible reputation, sponsors won't go near them."
*Shows Mazepin on screen*
Perfect XD

[samyooel]

Honestly I’m really doubting if Mercedes can maintain their dominance with only $145m, it’s been so long since they haven’t had a near unlimited budget

[servingcant]

I read the title as ‘How F1 fans make money’ that’s how broke I am.

[thkiwi]

Most of teams don't care if they make loss, because their biggest gain is making the brand stronger to the consumer, very classic indirect profit 👍

[mojo-hand]

The FIA is so concerned with bringing about greater parity through spending caps and technical limitations. However those FOM payments look like the most egregious factor in ensuring that parity is not possible.

[lucasgillbergkling]

"every team has around 15 to 20 sponsors", Haas: are you sure about that?

[docgaming]

The things Force India/Racing Point/Aston Martin have been able to do with a comparatively small budget is incredible

[nilmarkacain]

The budget cap is one of the good move by FIA to have a fair competition

[Shaown]

When you look at Alpha Tauri, you also have to consider that main engine R&D and the costs associated with it is also shared with Red Bull cause of the Honda engine and Alpha’s status as a Red Bull junior team

[alexgreen]

Normal F1 teams: sponsors and entering races
Racing point: Daddy’s cash will help

[JC-kzut]

The last point about the translation between F1 and road cars was spot on. You can see this in the priorities of certain car markets relative to F1 interest. In the UK, France, Germany, and Italy (and sometimes Japan), the consumer car market for performance cars mainly revolves around the engineering of the car (balance, handling, 0-60). In the US, the biggest performance car consumer market (and generally, the car market) are more focused on safety features, longevity of the engine, fancy interior, idiotic design that was put through a wind tunnel upside down, and embarrassing turbo noises.
F1 interest in the US must be top priority for the FIA if the future of performance cars is to be secure (look at how BMW has already cracked under US consumer demands to embarrassing enormous grill designs).

[SleepEnjoyerJ]

I think f1 might be the hardest sport to compete as an owner. I mean, there are some team in the past that join but ultimately fail. I wonder if teams such as monaco or panthera that wanted to join F1, how long does it take to reach the level of top teams or midfield teams

[jopsball-turret]

Basically like NASCAR. “Win on Sunday, sell on Monday.” It’s gonna be hard to top how exciting this year has been in F1, but I’m looking forward to the new regs. Plus nascar is going to new composite bodies to lower cost and even competition. These are all great things for race fans. Super video, thanks!

[thelaymaneveryman]

The problem is when the entry level is to expensive the talent pool becomes smaller. It becomes "we are not competing against the best in the world but the best who could afford it." I am of course referring to drivers. How can anyone claim to be the best at something if the sport they are in has a lower and lower talent pool every year.

[edoardonuvolone]

I'm Italian and this video came out on my home page by chance. Mamma mia how much quality is this video, I don't believe you have so few subscribers, keep it up and you will grow a lot. You are very good, a greeting from Italy (and always forza Ferrari)💪💪🔝

[adarshsaraf]

Man I really respect you for responding to almost all comments