Today, Formula 1 is one of the most recognizable sports worldwide. Over time, it evolved from a pure racing series into a global business. With its increasing global audience, the sport has transformed into a money-making machine.
Although F1 was a well-established racing series long before him, Bernie Ecclestone played a crucial role in shaping its modern structure. Ecclestone, a businessman at heart, decided to centralize TV rights and commercialize the sport. This allowed teams to earn money from broadcasting deals, but it also made F1 increasingly business oriented. He focused on securing lucrative contracts with race promoters, expanded globally and reached new markets and audiences.
When Liberty Media acquired F1 in 2017, they had another vision. They aimed to make the sport more accessible to a wider audience, rather than catering solely to the petrolheads who were already invested in racing. The introduction of Netflix’s Drive to Survive played a key role in this. The series gave fans a behind-the-scenes look at the sport, focusing on drama, rivalries, and personalities rather than just racing itself.
This approach proved successful, attracting millions of new fans, particularly from younger demographics. Social media presence, merch sales, and collaborations with brands have become almost as important as on-track performance.
Last year, F1 generated a record-breaking $3.6 billion in revenue, primarily from media rights, race promotion fees, sponsorships, and other sources. The sport redistributes 61% of its earnings as prize money among the teams.
The distribution is not entirely equal: the top teams benefit the most. Five teams also receive bonuses for their achievements over the last ten years – estimated to about 25% of the total prize pool. Additionally, Ferrari receives a special historical bonus for being part of the sport since its inception – estimated to about 5-10% of the total prize pool.
F1 has also caught Hollywood’s attention. Stars like Ryan Reynolds and Michael B. Jordan invested €200 million in Alpine, securing a 24% stake in the team. Apple Studios are also working on F1 movie with Brad Pitt in the main role – a project that reportedly cost over $100 million, further proving that F1 is no longer just about racing.
F1’s financial success is undeniable. It has expanded into new markets, attracted millions of new fans, and become more profitable than ever.
For fellow fans and I alike, it raises a few questions though. Where do we draw the line of the entertainment being too much? When will the money get priority over the racing itself? How long will this model remain sustainable? And finally, when it all collapses, how will we go back to just racing?