Formula 1 revenues higher than in 2023

After a lackluster 2023 season marked by Max Verstappen’s undisputed dominance, the 2024 Formula 1 season is attracting new fans. With its share of surprises and already 7 different winners this season, F1 is regaining its reputation following a complicated year. The program includes increasingly fierce competition at the front of the pack and renewed suspense that captivates fans’ attention.

Income that has increased significantly.

According to the figures published by Liberty Media last Thursday, Formula 1 alone generated $871 million (or 788 million euros) in revenue during the second quarter of 2024. This represents a 20% increase compared to the same period last year when $724 million was generated.

This growth is partly explained by an extended calendar put in place this year. Bringing the total number of Grand Prix to 24 during the season. Among these, eight took place in the second quarter of 2024, compared to six in 2023. Including the highly anticipated return of the Emilia-Romagna Grand Prix, (which could not take place last year due to floods) and the Shanghai race which returned to the calendar after a five-year absence due to Covid.

Formula 1 Director Stefano Domenicali also praised the renewed interest in Formula 1. It is attracting more and more enthusiasts, noting an 11% increase in the number of subscribers to the F1 TV platform. The peak reaches 16% in the United States, thereby increasing its revenues. The F1 season is marked by phenomenal races, with seven different winners in 14 races and tighter time gaps on the starting grid. In many ways, we have never had more competitive races. I expect the rest of the 2024 season to continue to offer great races to our fans. And in the future, the increasingly tight races offer very exciting prospects for 2025,” he commented.

The increase in the number of races per year has not only allowed an increase in revenue through race organization fees, but has also favored event diversity. This has helped maintain a constant interest throughout the season. Race promotion revenues remained relatively stable in the second quarter, as the revenues from additional races were offset by a different mix of events compared to the same period the previous year. Other Formula 1 revenues increased in the second quarter, mainly due to higher revenues from hospitality, freight, travel, technical services, and F2 and F3 races, said the former Ferrari executive.

Competition, a key factor in growth.

Outside the calendar, the intense struggle for the top positions is also a growth factor for this sport. Fans are increasingly present in the stands to follow the Grand Prix races, not really knowing who will come out on top. Uncertainty that inevitably triggers excitement. The incredible competition on the track leads to even stronger engagement as our diverse fan base continues to grow, tells Stefano Domenicali. We welcomed over 3.7 million spectators during the first 14 races of this season, with ten sold-out races, the Canadian Grand Prix recording a record attendance of 350,000 people and Silverstone matching its incredible 2023 record with a turnout of 480,000 people. Remarkable and very promising figures for the future of a discipline that was almost in decline in 2023.

The situation also benefits the Formula 1 paddock. The ten teams have seen their payments increase by 26% compared to 2023, going from $344 million (311 million euros) in the second quarter of 2023 to $435 million (394 million euros) in 2024. A figure that illustrates the current competitiveness. Teams received only $163 million (147 million euros) in the first quarter of the year, partly due to the dominance imposed by Red Bull.

However, the Italian is cautious, explaining that extending the calendar to 24 races carries risks, including an increase in costs borne by Formula 1. Other F1 revenue costs in the second quarter were also influenced by higher costs associated with the F1 Academy and the rental fees for the Las Vegas Grand Prix Plaza, which had not been incurred in the previous year. Sales, general, and administrative expenses increased due to rising personnel, IT, and real estate costs, as well as legal fees and other professional expenses,” he said.

At present, Stefano Domenicali does not plan to further increase the number of Grand Prix per season, especially as the regulations limit the races to a maximum of 24. He emphasizes the financial and sporting risks of an overload of work for the teams and the drivers. According to him, 24 races represent a strategic balance for the long term, although he remains open to new opportunities. For example, that of Rwanda, if it enhances revenue while maintaining calendar stability. The main challenge now is to prevent Formula 1 from becoming a victim of its own success.