How does financing in Formula 1 work?

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It is an open secret that Formula 1 is one of the most expensive sports in the world. Both for the participants and the organizers, but in what ways does Formula 1 itself earn its living? We list the main sources of income.

Formula 1 is the fastest and one of the most innovative sports on the planet. To be able to keep up with that, of course, a large bag of money is needed. The royal class therefore works in a similar way to the participating teams themselves: a large part of the financing is collected through collaborations and sponsorships.

TV broadcasts

The vast and most important part of the revenue is generated by the TV broadcasting and commercial rights. Hundreds of millions of viewers worldwide follow the sport. You can imagine that television channels and streaming services are willing to dig deep into their pockets to get their hands on the broadcasting rights. Worldwide, Formula 1 has several television deals.

Race organizers

Racing on circuits all over the world also brings in a lot of money. In Formula 1, the organizers of a Grand Prix pay for the privilege of a visit from the sport. With Monaco being the only exception, all names on the race calendar sometimes pay a fair amount of money to be on the destination list.

Sponsors and collaborations

In addition, Formula 1 also has numerous commercial collaborations. Big companies that pay to link their name to Formula 1. Think of Heineken, DHL or Rolex. Those are just some of the biggest names, but in total there are almost too many to mention.

Others

Of course there are many other sources of income for Formula 1. Think of merchandise, games and so on. However, the above are the most prominent. Formula 1 also collects money through, for example, the starting money of the teams and the fines that are handed out. However, a large part of this is also put back into the sport, for example through the prize money.

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