Why F1 net worth sits at a staggering $2.1 billion
- Formula One is unrivalled when it comes to glitzy sports
- It is the track’s version of horse racing
- Deep pockets are behind the glitz and glamour of every Grand Prix
What is F1 net worth considering that it’s the most lucrative sport in the world?
Formula One is unrivalled when it comes to glitzy sports. This is the sport of bling, with its ostentatious sponsorship deals, velvet rope parties, and absurdly expensive technology.
It is the track’s version of horse racing said to be sport of kings. In every respect, the race itself is the best of its kind.
Deep pockets are behind the glitz and glamour of every Grand Prix on the circuit. That’s what inflates the F1 net worth running into billions.
WHAT’S THE MOST EXPENSIVE SPORT TO PLAY?
F1 ranks top among the most expensive sports to play. It has an estimated $2.1 billion in earnings going by 2021 revenues.
A formula one Grand Prix, according to a marketing study, is the most profitable sporting event in the world. It’s a conclusion reached by Formula Money, an annual financial and business guide to Formula One, and the experts at Deloitte Sport Business.
Most of the racers get funding in some way by major corporations in the automotive industry. They have put their top engineers to work on developing the fastest cars possible.
All of these resources help Formula One develop a high-end reputation, attracting affluent fans, and making it an elite event. Proficient hybrid propulsion systems are another reason why F1 is such an expensive sport.
Frame made of lightweight carbon fiber, excellent aerodynamics make these automobiles undeniably some of the quickest and most expensive autos in the world. The materials used in the cars, the personnel of the racing teams, and the logistics involved in hosting each Grand Prix raise F1 net worth.
HOW MUCH MONEY DOES F1 MAKE?
The budgets of Formula One teams pegs on these four factors.
- Pay Drivers
- Payments from Formula 1
Formula One teams rely heavily on these payments, making them the second-highest revenue generator for the sport. As a reward for participating in the championship, each team receives about $36 million USD in prize money.
These funds come from TV rights and circuit sponsorship which ramp up F1 net worth.
Further, Formula 1 drivers and car manufacturers earn mainly through sponsorship. Each Grand Prix brings in around $230 million, making it approximately ten times more profitable than the American NFL football games.
Due to its status as the pinnacle of motorsport, Formula One is able to recruit the most talented drivers, managers, and engineers in the business.
Major players Red Bull and Mercedes made between $10 and $20 million in 2021 alone.
IS F1 THE RICHEST SPORT?
The materials used in each car, the personnel of each racing team, and the logistics of each Grand Prix count for so much. They contribute significantly to making Formula 1 the most expensive sport in the world.
Sponsorship remains the biggest earner in F1. The amount of money contributed by Formula One sponsors each season may range anywhere from €500k ($499,425) to €50M ($50 million).
Teams can increase their sponsorship requests proportionally to their level of success. But only if they are financially stable enough to compete at the front of the pack.
To sponsor an F1 team, starts from €500k ($499,425) annually without having your company’s name on the car or driver.
You can put your company’s brand on a midfield car for a cool €1M ($1 million) per year. Alternatively or you can pay €3M-5M ($3 – 5 million) per year to have it on a Ferrari, Mercedes, or Red Bull.
Title sponsorship typically costs between €20 million ($20 million) and €50 million ($50 million per year. This depends on the team’s prestige and competitiveness.
So, Mercedes can take into account they obtained nearly 20% of all TV coverage for the 2021 F1 season when determining their fees.
Further, Cognizant paid €35 million ($35 million) for their connection with Aston Martin. Petronas contributed €42 million ($42 million) for their alliance with Mercedes.
Recent sponsorship between Oracle and Red Bull Racing is worth around $300 million in a five-year-dea. With such figures, you can tell why F1 net worth is over the roof.
WHO IS F1 OWNED BY?
F1’s ownership goes to Liberty Media Corporation. John C. Malone is the owner of this multi-media behemoth with different connections to organized sports.
Hence, he is the owner in a formal sense. Bernie Ecclestone and CVC Capital Partners are previous owners of F1.