Despite Making $553 Million So Far, F1 Set Circuit Organizers Against Each Other to Save Money

Despite Making $553 Million So Far, F1 Set Circuit Organisers Against Each Other to Save Money
Credits: IMAGO / HochZwei

The first-ever 24-race season in the history of F1 is reaping huge rewards for the entire Formula 1 group (FOM). Per a recent update from Fox Sports, the group recorded revenues of $553 million in only the first quarter of 2024. However, the amount isn’t enough for the FOM, which continues to see circuit organizers go toe-to-toe so they can earn higher profits. 

Ahead of Liberty Media’s Q1 investor call, the organization released the numbers that show a 45% jump in the company’s revenue from 2023 (in the same window). The operating income amounted to over $206 million, which is a 289% increase. Meanwhile, team payments rose to $247 million from last year’s $170 million. 

With 24 races on the calendar, there is no more room to add another Grand Prix. Hence, if a new race wants to enter the foray, they have to do it at the expense of another. Japan and Singapore are secure for five more years, while seven other events have a contract that runs till 2030. Meanwhile, Madrid will join the calendar in 2026 and stay for the next 10 years. 

As such, the remainder of the races need to ensure the highest profit margins for F1 to stay afloat. Additionally, they would have to pay an annual accelerator, which increases the hosting fees by five percent each year, as per Speedcafe.

As for the events expiring soon, the hosts are expected to pay an inflated market rate so they can continue hosting events. If not, they will certainly be replaced by another host willing to accept the terms. 

Global presence of F1 aiding FOM in their demands

Apart from Africa and Antarctica, there are F1 races on every other continent, making the sport a global phenomenon. Reportedly, efforts are being made to bring Africa back on the F1 calendar after over 30 years.

The last time an African Grand Prix took place was back in 1993 in Kyalami. Other events are also under consideration to make the calendar. For example, trademarks are in place for the Chicago GP, indicating another American race in F1.

Speaking about the future of the sport, Stefano Domenicali expects new venues to debut soon. Per the F1 CEO, these new venues will further add to the business of the sport, increasing the revenue even more.

“I would say in the next couple of years, I’m expecting to see, and we expect to announce also, some new venues that could be very attractive to grow the business of Formula 1.”, he said.

Related Posts

Coleen Rooney oozes beauty in bikini as Wayne shows off eye-catching hair transformation

Former footballer Wayne Rooney sported a very unusual hairdo as he enjoyed his sunny Ibiza getaway with wife Coleen, who looked gorgeous in a two-piece bikini Coleen…

Victoria Beckham shares update on David Beckham after surgery with cheeky recovery video

David Beckham was in hospital recently but his wife Victoria Beckham has shared an update with a video of the retired footballer back at home but sporting…

Taylor Swift fans spot ‘clue’ Matty Healy took aim at singer during Glastonbury performance

The 1975 fans think they spotted a very subtle swipe at Taylor Swift during their Glastonbury headliner performance as lead singer Matty Healy made a ‘poet’ reference…

Dick and Angel Strawbridge inundated with support as they share emotional announcement

The Strawbridges documented their renovation of their stunning French home on Channel 4’s Escape to the Chateau, but after the show ended last year, they kept fans…

Noel and Liam Gallagher spark fury from Oasis crew with ‘money pinching’ decision

Oasis have been accused of being so ‘about the money’ that even their hard-working crew haven’t been given any free tickets to their upcoming reunion tour Liam…

Meghan Markle releases new As Ever wine and £21 jar of honey

The Duchess of Sussex has finally revealed the newest range of lifestyle products with her brand As Ever, surprising many with the outrages prices and limited availability…