Formula 1 sponsorship exceeds $2 billion for the first time
According to a recent SponsorUnited report, F1 teams collectively generated $2.04 billion in sponsorship revenue in 2024, closing the gap on the undisputed leader, the NFL.
Formula 1 has become a true giant of sponsorship in recent years, and new independent research shows that more than $2 billion were generated in 2024, making F1 the second most lucrative championship behind the NFL.
2 billion dollars
A report from SponsorUnited reveals that F1 and its teams earned $2.04 billion last year — a figure higher than that of many historically dominant American sports leagues in terms of sponsorship.
The NBA, MLB, and NHL all reported less, with only the NFL retaining the top spot with 2.5 billion. However, the methods of achieving these revenues differ radically between the two disciplines.
The report indicates that F1 teams generated on average more than $6 million each, which is eight times more than the average per partnership in the NFL. A few years ago, people said the world was going crazy when the Dallas Cowboys were valued at $4 billion, recently stated Toto Wolff, Mercedes director, to the Financial Times.
Today, they are worth 10 billion and everyone exclaims: it's crazy! If the teams succeed, the sport prospers, the results follow, and a higher valuation is justified. In F1, it is justified by comparable valuations, revenue multiples, EBITDA multiples, sustainable growth, and predictable revenues.
« Sponsorship contracts generally last between three and ten years. TV rights too. You have great stability, which is not always found in traditional business. The appeal of F1 changed when Liberty Media bought the sport. Bernie [Ecclestone] ran it for over 40 years and made it huge. But when the hand changed, the new owners took it to a whole different level — the American way, with a vision of the sport as entertainment. »
Unsurprisingly, Mercedes, Ferrari, Red Bull, and McLaren are among the most lucrative teams in terms of sponsorship. The report also details the most active sectors in F1, with the technology sector alone accounting for over 500 million dollars in revenue.
Finally, the report indicates that the most expensive advertising assets on a car—such as the airbox or the sidepods—can exceed 5 million dollars for the major teams.
