Never before have the people behind the commercial rights to Formula 1 raked in so much money as was the case in 2024. However, one lob is disappointing in the accounts.
The annual accounts from Liberty Media, the holder of the commercial rights to Formula 1, show record revenue.
Formula 1's total revenue for 2024 is estimated at $3.65 billion, equivalent to approximately 25.3 billion Danish kroner.
This is an increase of six percent compared to 2023. However, analysts have pointed out a decline in revenue in the fourth quarter, something for which there are several explanations.
One of the reasons for the decline in revenue in the latest quarter is the Las Vegas Grand Prix. The race, which made its debut in 2023, was awash with money. But it declined significantly in 2024.
On the other hand, this phenomenon is not unknown in motorsport, where newly established races often attract a large but temporary interest. It is thus uncertain whether the Las Vegas Grand Prix can maintain stable attendance in the long term.
The money is pouring in – but the new lobs on the call are especially dragging down Formula 1
The Las Vegas race is particularly relevant as it is the only race on the Formula 1 calendar that is owned and operated directly by Formula 1/Liberty Media.
Unlike other races, where Formula 1 receives a fixed fee from the organizers, the organization in Las Vegas assumes full financial responsibility.
If revenues continue to decline, it could prompt an assessment of the sustainability of Formula 1's strategy of holding its own races.
The calendar was expanded to 24 rounds in 2024, compared to 22 rounds in 2023. This expansion generally contributed positively to the bottom line. In particular, returning to Imola and the race in China at the Shanghai International Circuit has been a good financial boost.
The revenue from Formula 1 is distributed as follows:
- Media revenue: 32.8%
- Lob fees: 29.3%
- Sponsorships: 18.6%
Although the Las Vegas race brought in less than expected, the overall economy in the sport looks good.
However, the accounts point to the fact that Formula 1 is still very dependent on TV rights. At the same time, there is a risk that the newer races on the calendar in particular will not attract as much interest as the classic ones. Neither behind the TV screens nor out on the tracks.
