Motorsports is, without a doubt, one of the most expensive sports in the world, and the Formula 1 It is even more so. Maintaining a car that consumes more than 110 litres of petrol and that destroys up to two sets of four tyres per race is for only a few.
According to the criteria of
Liberty Media, Through Formula One Management (FOM), it is squeezing as much as possible the commercial rights of a category in which 24 Grand Prix are being run this year, something unthinkable a few years ago.
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The ‘Big Circus’ through this company, billed 3.2 billion dollars in 2023, which it distributed around 1.3 billion dollars to the 10 teams that make up the grid. Each team receives a different percentage, and each one manages to work with the money that there is.
However, as in most sports, there is always a limit; in football, for example, it is called financial fair play (although some teams are investigated for breaking it). The regulations allow for spending 135 million dollars on racing shares, but this does not include the salaries of drivers, marketing or the salaries of the three top executives.
“There is a regulatory limit of 135 million dollars that teams can spend on race actions. Marketing and the salaries of the drivers and the three top executives are not included. For now, Franco may have a stomach ache due to dehydration and the sugars contained in the drink he consumes during the race. If all goes well, a good amount of greenbacks will alleviate any symptoms,” explained Orlando Ríos in La Nación of Argentina.
Lando Norris
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“When the roar of the engines dies down or when work is going on at full speed in the workshops, most of them located in England, the world of money that moves F1 keeps going… It is a world that, like that of professional football at a high level, national or international, can leave the rookie (Franco Colapinto) speechless when he suddenly finds himself thrown onto the field. To play with the biggest sharks, whether they are established players or financial and advertising operators in a global environment. This also happens in Formula 1, although on a smaller scale than in football, where TV rights for a league like the English one are sold for more than 2 billion dollars a year,” he added.
Last year, Liberty Media raised 25 percent more money than in 2022 (just over $3.2 billion). “The business, based on a 24-race championship, wants to take off. Of that total, revenue from race promotion totaled $944 million; $1,044 million came from TV and $579 million from direct sponsors. The increases in revenue are mainly due to the interest of young Americans and Asian fans,” said Ríos.
“When F1’s previous owners decided to sell, Liberty Media, controlled by American TV billionaire John Malone, paid the equivalent of $4.4 billion in 2017. The FIA had handed over the commercial rights to Bernie Ecclestone and associates for 100 years in 2011. At the time, Ecclestone had been in charge of Formula 1 since 1974 and the company was worth around $1.2 billion. “Godfather” Bernie, as he was known in the paddock, referring to his unique and highly personal management style, was at odds with new communication technologies and was missing out on real opportunities to grow the sport,” he added.
Christian Horner and Max Verstappen
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Teams like Red Bull and Mercedes They spend more than the 135 million dollars per year that is stipulated by the regulations. Between the salaries of their pilots and marketing expenses, they can reach 200 million, money that is paid for with sponsorships, which are essential in this game.
“The commercial departments of the teams and the drivers’ managers are the ones who seek sponsorship. An unwritten rule says that you should only target companies whose annual sales are around 400 or 200 times higher than the value of the required sponsorship. That is why, for Oracle, Red Bull’s 100 million dollars only represent 0.19% of its estimated annual turnover of 53 billion dollars“, said Orlando Rios.
Motorsport is undoubtedly one of the most expensive sports in the world, and Formula 1 is even more so. Maintaining a car that consumes more than 110 litres of petrol per race is for only a few.
Max Verstappen and Lewis Hamilton
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