Liberty Media’s Record-Breaking 2024 with F1
Is it possible to surpass this year’s record numbers in the future? After celebrating a 2024 revenue exceeding $3 billion, Liberty Media is convinced that the F1 product still has significant growth potential. This belief stems not only from the fact that the U.S. market has only recently embraced the GP paddock but also because the American entertainment multinational, which has held F1’s commercial rights since 2017, is exploring new partnerships to diversify revenue streams.
The Sponsorship Market
As reported by Michael Schmidt in *Auto Motor und Sport*, the first step appears to involve the sponsorship market. The recent agreement with LVMH (Moët Hennessy Louis Vuitton) is a significant milestone for Formula 1, with the French luxury giant signing a decade-long contract. Other long-standing paddock partners, such as DHL and American Express, have also recently renewed their expiring agreements.
Paddock Club: The Las Vegas Model
Speaking of luxury, another growing revenue source is the Paddock Club, a premium hospitality service at GPs offering various levels of exclusivity depending on the amount spent by wealthy fans or companies seeking to provide unique experiences for their clients within the F1 context. In this regard, the Las Vegas race has paved the way for new possibilities that could be replicated at other circuits. That weekend, the Paddock Club hosted 30,000 guests, with ticket prices ranging from $5,000 to $100,000.
Liberty Media Between Circuits, Calendar, and F1TV
Then there are the circuits: Liberty Media has recently signed contracts with seven tracks. Suzuka has renewed its deal until 2029, Shanghai until 2030, with Monza and Monte Carlo extended until 2031, and Silverstone committed long-term until at least 2034. Madrid will host the GP paddock from 2026 to 2035. In contrast, Zandvoort has extended its contract until 2026 but has already announced its exit from the F1 calendar upon the current agreement’s expiration. Additionally, countries like South Africa, Rwanda, and Thailand have shown interest in organizing a GP in the coming years.
However, the potential for growth in this area is limited: the Concorde Agreement specifies that there cannot be more than 25 GPs per season. With 24 races already on the calendar and a likely focus on increasing the number of Sprint Races in the near future (2025 will still feature six, as in 2024), further calendar expansion seems improbable given complaints from staff about the excessive workload placed on mechanics. Instead, while Stefano Domenicali has openly discussed introducing circuit rotations, *Auto Motor und Sport* suggests Liberty Media might focus on expanding its subscription-based F1TV channel (currently unavailable in Italy).
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