Analysis of the category’s main revenue streams shows how Formula 1 has become a leading example of modern sports business and global commercial success.
In 2025, Formula 1 reached a record-breaking turnover of 3.87 billion dollars, marking a 14% increase compared to the previous year. This represents the fifth consecutive year of growth under Liberty Media’s ownership, which has transformed the championship into a high-value global sports asset.
The business model is built on three main pillars, supported by additional commercial activities, and clearly demonstrates how modern sport has evolved into a powerful economic engine capable of generating massive value worldwide.
Since 2017, when Liberty Media acquired Formula 1 for approximately 8 billion dollars, total revenues have more than doubled. The global fan base has grown to 827 million people, representing a 12% increase in just the last year alone. Meanwhile, the average valuation of Formula 1 teams has skyrocketed from 300–400 million dollars to around 3.4 billion dollars each.
This transformation is the result of a structured commercial strategy that has maximized media rights, live events, and global brand partnerships.
The three main pillars of Formula 1 revenue
Formula 1 revenue is primarily driven by three core sources, which together account for approximately 80% of total income.
Broadcasting rights
Broadcasting rights represent the largest revenue stream, accounting for 31.3% of total income. In 2025, they generated approximately 1.21 billion dollars.
These revenues come from global agreements with television networks and streaming platforms that bring Formula 1 into millions of homes worldwide. A recent example is the exclusive deal signed with Apple for United States broadcasting rights starting in 2026: a five-year contract worth over 140 million dollars per year, nearly double the previous agreement with ESPN.
Growth in this segment is also supported by rising subscriptions to F1 TV and premium content such as the Netflix series “Drive to Survive”, which continues to expand Formula 1’s global audience reach.
Race promotion rights
Race promotion fees account for approximately 26.7% of total revenue, valued at around 1.03 billion dollars.
Each host country or circuit pays a significant fee to enter or remain on the Formula 1 calendar. Many of these agreements are long-term contracts extending into the 2030s. These payments reflect the growing global demand from destinations seeking international visibility, tourism growth, and major economic impact through hosting a Grand Prix.
The number of races has increased, and contracts have been renewed in key locations such as Canada, Mexico, Miami, Austin, Azerbaijan, and Monaco.
Sponsorships and commercial partnerships
This segment accounts for around 21.7% of total revenue, generating approximately 840 million dollars in 2025.
Formula 1 attracts elite global brands thanks to its unique combination of technology, glamour, and a young, international audience. Recent partners include LVMH (with Louis Vuitton, Moët Hennessy, and Tag Heuer), PepsiCo, Disney, Barilla, Nestlé, Lenovo, Salesforce, and LEGO.
Growth in this area has been driven by new partnerships, improved contract renewals, and the expansion of digital advertising. For the first time, sponsorship revenue has surpassed 20% of total income, underlining Formula 1’s increasingly strong commercial appeal.
Other revenue streams and financial distribution
The remaining 20.3% of total revenue, approximately 786 million dollars, comes from a range of complementary business activities.
These include premium hospitality services such as the Paddock Club, licensing and merchandising packages, transport and logistics services, as well as income generated from fan experiences and associated events.
Hospitality, in particular, has evolved from a simple add-on service into a central component of brand engagement, transforming race weekends into full-scale experiential festivals for fans and partners alike.
A key element of the Formula 1 business model is revenue sharing with teams. In 2025, around 36% of total revenue—approximately 1.4 billion dollars—was redistributed to teams in the form of prize money.
This represents the highest distribution level in Formula 1 history. The system, regulated by the Concorde Agreement, ensures financial predictability for teams and directly links their growth to the overall success of the sport.
Each team knows exactly how much it can earn based on its position in the Constructors’ Championship, along with additional historical bonuses.
Outlook and strategic value
The evolution of Formula 1 under Liberty Media demonstrates how a traditional sporting competition can transform into a global media and entertainment business.
From approximately 1.8 billion dollars in revenue in 2017, the sport has grown to nearly 4 billion dollars today, with improving operating margins and increasing appeal for both traditional investors and big tech companies such as Apple.
This model is not only a financial success; it is also a clear example of how sport can generate widespread value through media rights, tourism, technological innovation, and global brand partnerships.
Formula 1 continues to expand with a packed calendar, a growing global audience, and an ecosystem that rewards both sporting excellence and commercial performance. The future appears strong, supported by long-term contracts and a unique position within the global sports and entertainment landscape.
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