How Formula 1 Teams Make Money

CNBC’s Sara Eisen goes inside Formula 1, finding out how the racing league’s most prominent team principals manage their billion-dollar businesses, woo sponsors, and keep advancing their high-tech cars under a recently created cost cap.  Watch the video to find out what it takes to run a cutting-edge race car over the months-long Formula 1 season.

Chapters:
1:29 Chapter 1 - Leading an F1 team
3:39 Chapter 2 - At the starting line
4:48 Chapter 3 - The cost of an F1 team
6:09 Chapter 4 - Raising cash
10:37 Chapter 5 - The cost cap comes in
12:18 Chapter 6 - Racing ahead

Correspondent: Sara Eisen
Produced By: Kathy Liu
Additional Reporting: Christie Gripenburg, Meghan Lisson, Amanda Winograd, Erin Andrews
Edited By: Rich Korn, Candice Goldman
Executive Producer: Wally Griffith

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How Formula 1 Teams Make Money

[CNBC]

Note: This video is only available for viewers in the U.S.

[toastman]

Honeslty the cost cap is such a great thing to be introduced. Makes the teams think harder about designs etc rather than just making it constantly and wasting money

[matthoward]

Simple questions. Allowed them to talk uninterrupted. Great segment for people interested finances and newbies to the sport overall.

[patrickbateman-cugf]

Very well done documentary. Great questions, no interruptions, and very engaging. Props to CNBC.

[allareasindex]

This is the clearest, most accurate, and concise explanation I’ve ever seen.

[commonsense]

Almost every single advancement in modern cars comes from F1 cars. Brakes, fuel efficiency, they are vital to the car industry as a whole

[paskowitz]

You can just tell Horner loves that Ferrari gets a free check from F1 LMAO

[victors]

I love her as an interviewer she always goes straight to the point with great questions

[TheBigdutchster]

Good report. F1 is experiencing excellent growth the last few years, but in some ways, F1 is not a racing league, it's a money-making machine that is finely tuned.

[versatile.mindset]

"They'll be back like the Terminator" great humor 😂😂😂

[firstonegaming]

F1 is the pinnacle of any car racing. The technology put to the cars, the engineering etc.

[dhruvbhartiya]

00:10 Formula 1 teams are valued at over $15 billion
02:04 Formula 1 team CEOs have multiple roles, with creating a thriving performance framework as their priority.
03:48 Formula 1 teams have high operating costs, including marketing, mechanics, and driver salaries.
05:27 Formula 1 teams make money through sponsor contracts, prize money, and historical benefits.
07:10 Formula 1's global reach connects MoneyGram with its target market.
08:41 Partnerships with sponsors are crucial for the success of Formula 1 teams
10:26 Formula 1 teams are benefiting from improved income and cost caps.
12:01 Formula 1 teams aim to be profitable and increase team values.

[jorgemiguelmilano]

13:33. Toto Wolff saying "I'll be back" would be golden.

[chookity]

I never really thought about how the cost cap makes every team more sustainable in F1, and subsequently more attractive as investment opportunities due to improved profitability. Lovely video!

[tinto]

F1: We need money!
Australia: Alright guys keep your shirt on, I'll send Daniel Ricciardo and Hollywood.
F1 Stonk: 📈$$$$

[STORMSHADOW]

I've been an F1 fan since the early 90s and seen the sport transform under Liberty Media's ownership. Just a few years ago, if I mentioned F1, most everyone here in America had no clue about it and couldn't name 1 driver. Now, we have 3 races here and an explosion of new fans! Credit Netflix Drive to Survive for 90% of creating the popularity. Its nuts! I like that the sport has grown but also not because the cost of admission has skyrocketed.

[reversal]

Fantastic documentation of the sport I love so much! There’s many awful explanations and videos created but this was superb! Glad you guys got to sit down with the team principles and ask some solid questions, would love to see a follow-up featuring other topics in F1!

[OneDullMan]

I appreciate the candor and openness from these business insiders. Very refreshing and quite different from most in the corporate world. Then again, their technical secrets are locked down quite strongly.

[ltdada]

It’s by far the most complete competition there is. F1 is a competition not only around drivers, but mainly between companies, personalities, countries, factories, engineers, logistics, development programs and especially since the cost cap finance. No other competition comes close.

And it’s all decided on the race track ❤

[bemoremad]

CNBC really has been on a roll with these short documentaries. Very well done.