How Much Money Does Formula 1 Generate?
Formula 1 (F1) has solidified its position as a premier global motorsport, captivating audiences worldwide and generating substantial revenue annually. This article delves into F1's annual earnings, per-race revenue, primary income sources, and the wealthiest teams as of 2025.
RELATED: Top 5 Richest Formula 1 Drivers in 2025.
Annual Revenue of Formula 1
In 2024, Formula 1 reported total revenues of $3.22 billion, marking a consistent upward trajectory in the sport's financial performance. This growth is attributed to strategic expansions, enhanced media rights deals, and a surge in global fan engagement.
RELATED: The Top 5 Richest Formula 1 Teams in 2025.
The revenue streams for 2024 were categorized as follows:
- Media Rights Fees: 32.8%
- Race Promotion Revenue: 29.3%
- Sponsorship Fees: 18.6%
These figures underscore the diversified nature of F1's income sources, with media rights and race promotions leading the charge.
Revenue Per Race
With a calendar featuring 24 Grands Prix in the 2024 season, Formula 1's average revenue per race stands at approximately $134 million. This estimation is derived by dividing the total annual revenue by the number of races, highlighting the significant financial impact each event contributes to the overall earnings.
Primary Revenue Streams
Formula 1's robust financial health is maintained through multiple revenue channels:
1. Media Rights Fees
Accounting for 32.8% of total revenue in 2024, media rights fees are a cornerstone of F1's income. The sport's global appeal has led to lucrative broadcasting agreements with major networks, ensuring widespread coverage and substantial financial returns.
2. Race Promotion Revenue
Comprising 29.3% of the annual revenue, race promotion fees are paid by host venues for the privilege of organizing a Grand Prix. These fees vary based on location and market dynamics, reflecting the event's prestige and expected economic impact.
3. Sponsorship Fees
Sponsorships contributed 18.6% to F1's revenue in 2024. Collaborations with global brands not only provide financial support but also enhance the sport's visibility and marketability. Notably, in 2024, luxury conglomerate LVMH entered a decade-long partnership with Formula 1, infusing $1 billion into the sport. This alliance introduced LVMH's brands prominently into F1 events, with Moët & Chandon replacing Ferrari Trento as the official podium champagne, Louis Vuitton crafting bespoke trophy cases, and TAG Heuer assuming the role of official timekeeper.
4. Merchandising and Licensing
Revenue from merchandise sales and licensing agreements, including official team apparel, memorabilia, and video games, adds a significant sum to F1's income, though specific percentages are not detailed in the available data.
5. Hospitality and VIP Packages
Premium experiences, such as the Paddock Club, offer exclusive access and services to attendees, contributing additional revenue. While exact figures are not specified, these packages are a notable aspect of F1's diversified income.
Richest Formula 1 Teams in 2025
The financial landscape of Formula 1 teams has seen remarkable growth. As of 2024, the average team valuation soared by 44%, reaching $2.31 billion. This surge reflects the sport's increasing popularity and the successful financial strategies employed by the teams.
Here are the top five most valuable F1 teams:
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Ferrari: Valued at $4.78 billion, Ferrari remains the most iconic and financially robust team in Formula 1.
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Mercedes: With a valuation of $3.94 billion, Mercedes continues to be a dominant force both on and off the track.
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Red Bull Racing: Valued at $3.5 billion, Red Bull Racing has solidified its position as a top contender in the sport.
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McLaren: With a valuation of $2.65 billion, McLaren's resurgence in performance has been matched by its financial growth.
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Aston Martin: Valued at $2.07 billion, Aston Martin's strategic investments and partnerships have elevated its status in the F1 hierarchy.
These valuations are influenced by factors such as historical performance, brand value, sponsorship deals, and on-track success.
Conclusion
As of 2025, Formula 1 continues to exemplify a successful fusion of sport and business, generating substantial revenue through diversified streams and witnessing significant growth in team valuations. The sport's strategic partnerships, global expansion, and unwavering fan engagement ensure its position at the pinnacle of motorsport entertainment.
