Ever wondered who owns the pinnacle of motorsport, Formula 1? Well, the answer is Liberty Media, an American media conglomerate that also owns SiriusXM, and has stakes in Live Nation and the Atlanta Braves. F1 falls under Liberty Media’s subsidiary, the Formula One Group, which has controlled the commercial aspects of F1 since acquiring it in 2017.
What is Formula 1?
Formula 1 (F1) is the world’s premier motorsport championship, featuring the fastest cars, some of the most talented drivers, and some of the most cutting-edge technology in the automotive industry. The sport consists of a series of races called Grands Prix held across different countries and continents, attracting millions of fans to circuits and even more watching from home.
Each F1 season features 10 teams, also known as constructors, who design and build their own race cars. These teams include legendary names like Ferrari, Mercedes, Red Bull, and McLaren.
Each team fields two drivers, making up a 20-driver grid. They compete for the World Drivers' Championship (WDC) while earning points for their teams in the Constructors' Championship, which crowns the season’s top-performing team.
Even though IPL enjoys massive popularity in cricket-loving nations and a higher viewership, Formula 1 teams are nearly 25 times more valuable than IPL teams, according to Sportico and Statista data, demonstrating the financial muscle and global appeal of the motorsport.
Formula 1 Latest News
The F1 2025 season kicked off last weekend with McLaren’s Lando Norris winning the Australian Grand Prix to lead the World Drivers’ Championship. The coming weekend, the Chinese Grand Prix is scheduled to take place at the Shanghai International Circuit.
What Is Liberty Media?
Liberty Media is a publicly traded media and entertainment company that specializes in investing and managing businesses within the entertainment, sports, and communications industries. Its acquisition of Formula 1 from CVC Capital Partners for $4.4 billion marked a turning point for the sport.
Interestingly, Warren Buffett’s Berkshire Hathaway holds a stake in Liberty Media's F1 business, $630 million worth of shares as of December 30, 2024, according to the company’s Q4 13F filing.
How does Liberty Media make money from F1?
Owning Formula 1 is not just about prestige, it is a highly lucrative business. Liberty Media generates revenue from multiple streams, with its Formula One Group contributing a significant portion of its earnings. In FY24, Formula 1 generated a staggering $3.41 billion in revenue. Here’s a breakdown of how Liberty Media made money from F1:
1. Race Promotion Fees: Formula 1 charges promoters (governments, racetrack owners) hefty fees to host a Grand Prix. This is why F1 races often take place in wealthy cities and nations willing to pay millions to be part of the calendar.
2. Media Rights: The biggest chunk of F1’s earnings comes from selling broadcasting rights to TV networks and streaming platforms globally. As F1 expands into new markets, the company expects this revenue stream to continue growing.
3. Sponsorship Deals: Global brands pay top dollar to associate themselves with F1. From Louis Vuitton to Red Bull, companies leverage the sport’s elite image to reach a massive audience.
4. Other Revenue Streams: This includes revenue from hospitality, licensing, and digital platforms, contributing significantly to the sport’s overall profitability.
Over the past three years, Formula One Group has seen impressive growth, proving that Liberty Media’s management is steering the sport in the right direction. Since 2022, total revenue has jumped by 33%, driven by higher race promotion fees, media rights deals, and sponsorship growth. The biggest boost came from broadcasting, with media rights revenue up nearly 20%, as more streaming platforms and networks fight for F1’s global audience. Sponsorships have also grown by 46%, showing the sport’s increasing commercial appeal to major brands.
At the same time, Formula 1’s profitability has soared. Operating income has more than doubled in just two years, thanks to rising revenue and efficient cost management. Even though team payments have increased by about 10%, they are a key part of keeping F1 competitive and ensuring teams thrive under Liberty Media’s model. The sport’s operating margin remains strong at 23%.
What’s even more impressive is that F1 achieves all this without heavy reinvestment. Capital expenditures remain low, accounting for just about 2% of revenue, meaning most of the money generated flows back into the business and to shareholders. With record-breaking fan engagement, more races being added, and brands eager to be part of F1, the future looks promising for both Liberty Media and Formula 1.
The future of F1 under Liberty Media
Liberty Media has transformed F1 into a global entertainment powerhouse. Under its leadership, the sport has:
- Expanded to new markets (e.g., Miami and Las Vegas Grand Prix).
- Enhanced digital engagement through Drive to Survive on Netflix.
- Increased profitability, making it an attractive investment for shareholders.
With viewership growing and new revenue opportunities emerging, Liberty Media is hoping to steer Formula 1 into an even more commercially successful future. So next time you watch an F1 race, remember, you are witnessing one of the most valuable sports businesses in the world!
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