Formula 1 has seen a 24 per cent year-over-year increase in revenue, to the tune of $887 million in the third quarter of 2023.
A series of factors impacting the three-month period ending September 30 ensured that the sport’s operating income increased from $64 million to $107 million according to financial results released by Liberty Media (via Blackbook Motorsport).
A series of commercial partnerships signed by Formula 1 during the period has helped with the upturn in revenue, with one signifying the sport’s ever-entwining relationship across the Atlantic in the Americas.
A deal struck between F1 and American Express was announced in October, which starting with the United States Grand Prix in Austin, Texas, saw the latter begin a multi-year deal as F1’s official payments partner in the Americas.
On October 30, F1 released news of another multi-year partnership, this time with the sports network DAZN, who earned exclusive broadcast rights in Spain through to the conclusion of the 2026 season.
A big factor in the increase in revenue was the fact that the 2023 calendar saw eight Grands Prix during the third quarter, as opposed to just six last year, but with two extra overseas events (outside of Europe) during this year’s period, an increase in logistical costs did some work in mitigating the extra revenue generated by running more events.
lt Stefano Domenicali (ITA) Formula One President and CEO with Mohammed Bin Sulayem (UAE) FIA President and Greg Maffei (USA) Liberty Media Corporation President and Chief Executive Officer on the grid. 22.10.2023. Formula 1 World Championship, Rd 19, United States Grand Prix, Austin, Texas, USA, Race Day. – www.xpbimages.com, EMail: requests@xpbimages.com © Copyright: Moy / XPB Images
However, overall the picture painted is one of increased financial growth, a developing legacy of Liberty Media’s time at the helm of Formula 1 and the sport’s CEO, Stefano Domenicali speaks positively of the recent progress.
“Formula One continues to experience sell-out crowds, record race attendance and strong growth across our social and digital platforms, outpacing that of other major sports leagues,” he said.
“This growth is attracting commercial partners, including our recent agreement with American Express that marks the first new sports vertical they have sponsored in over a decade.
“We are making material progress on our sustainability initiatives, including reducing F1’s corporate emissions and amplifying F1 Academy by fully integrating the series into the 2024 F1 calendar with participation from all ten F1 teams.”
Next up on the F1 calendar and the sport’s ever-evolving financial journey is the Las Vegas Grand Prix, unique in the fact that F1 is playing the role of race promoter for the event.
The new role for F1 as promoter has seen the series front costs for building infrastructure, including the likes of a new pit and paddock complex, meaning the commercial success of the event is of paramount importance.
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