According to Liberty Media’s most recent financial report, F1 income increased by more than $200 million over the previous year.
Week over week records in on-site attendance has helped Formula One continue its resounding comeback from the challenges posed by the Covid epidemic, and this has led to a huge boost in revenue.
According to Liberty Media’s second-quarter financial report, F1 revenue increased by 49%, from $501 million to $743 million. Each quarter featured seven races each year, although it is important to keep in mind that the Paddock Club was completely inactive and most events during this time last season were subject to attendance caps.
“The Formula 1 2022 season continues to set records, as we’ve seen exciting action and unpredictable outcomes on the track,” said F1 CEO Stefano Domenicali. “We are attracting fans in person and across all our platforms.”
“We are making meaningful progress working with all of our stakeholders including our teams, race promoters, the FIA and business partners towards our goal to hit net-zero carbon by 2030.”
The breakdown exemplifies how much the significant financial increases the sport is currently experiencing are due to the large-scale return of supporters. As a result, primary revenue which includes race promotion, broadcast rights, and sponsorship payments, grew from $464 million to $628 million, a 35% increase.
Regarding this figure, Liberty Media explains that the revenue from Race promotion increased as a result of greater fees produced by the various types of events held and contractual price increases.
“Media rights increased due to growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements.”
“Sponsorship revenue increased due to the recognition of revenue from new sponsors and higher race-specific revenue generated from the different mix of events held.”
Liberty Media explains the increase of “other F1 revenue” by 214% from $37 million to $116 million.
“Other F1 revenue increased in the second quarter primarily due to an increase in freight revenue driven by the increased number of events held outside of Europe and inflation in underlying costs, as well as higher hospitality revenue generated from the Paddock Club, which F1 operated at 5 races in the second quarter of 2022 but was unable to operate in the prior year period.”