Formula 1 Revenue Hits Record High in 2024

Liberty Media, the company holding commercial rights to Formula 1, achieved a record-breaking revenue in 2024.

A Year of Financial Success

The total revenue for Formula 1 reached $3.65 billion in 2024, marking an impressive growth from the previous year.

Revenue Growth Continues

Compared to 2023, Formula 1 saw an overall increase in revenue of six percent, highlighting the sport's ongoing financial appeal.

Fourth Quarter Concerns

Despite the strong yearly growth, analysts pointed to a decline in revenue during the fourth quarter, raising questions about future stability.

Las Vegas Grand Prix Underperforms

One reason for the fourth-quarter dip was the Las Vegas Grand Prix. Debuting strongly in 2023, the event saw a significant drop in revenue in its second year.

New Events Often Face Challenges

The phenomenon seen with Las Vegas Grand Prix is not unusual. New motorsport events frequently attract initial excitement that can fade in subsequent years.

Unique Ownership Model

Las Vegas is notable as it’s the only race on the Formula 1 calendar fully owned and operated directly by Liberty Media, differing significantly from other races.

Financial Risks of Owning Events

Unlike other races where organizers pay Formula 1 a fixed hosting fee, Liberty Media assumes all financial risk with the Las Vegas Grand Prix, impacting profits.

Strategy Under Scrutiny

If revenue from the Las Vegas event continues declining, Liberty Media may need to reassess its strategy of hosting its own races.

Expansion Boosts Revenue

In 2024, Formula 1 expanded its calendar from 22 to 24 races, a move that positively contributed to overall financial performance.

Popular Returns to the Calendar

Returning races, particularly at Imola and the Shanghai International Circuit in China, provided a notable boost in revenues.

Revenue Breakdown

Formula 1’s revenue sources in 2024 included media rights (32.8%), race hosting fees (29.3%), and sponsorships (18.6%).

Dependency on TV Rights

The financial results indicate Formula 1 remains heavily dependent on media rights, suggesting a potential vulnerability if viewer interest declines.

Balancing Tradition and Innovation

Although the Las Vegas Grand Prix did not perform as expected, Formula 1’s financial outlook remains strong. However, maintaining interest in newer events compared to traditional favorites will be crucial moving forward.

It will be interesting to see how revenue develops in 2025. The new Formula 1 season kicks off this coming weekend with the drivers taking on the Australian Grand Prix.