F1 generates more revenue per event than any sport

Formula One Grands Prix Generate More Revenue Per Event Than Any Sport in the World Formula Money (www.formulamoney.com), the organization which monitors the financial health of Formula One (F1) motor racing, and Deloitte Sport Business Group have ...

F1 generates more revenue per event than any sport

Formula One Grands Prix Generate More Revenue Per Event Than Any Sport in the World

Formula Money (www.formulamoney.com), the organization which monitors the financial health of Formula One (F1) motor racing, and Deloitte Sport Business Group have revealed F1 generates more revenue per event than any other sport in the world. Each of the motor sport's 17 races produce an average revenue of $229 million per event -- nearly ten times that of its closest competitor, the National Football League (NFL), which generates $24 million per game.

Figures from Deloitte Sports Business Group show the NFL ($6.5 billion in 2006) and Major League Baseball (MLB, $5.1 billion in 2006) earn more overall revenue than F1's total $3.9 billion with a substantially higher number of annual events. The Premier League soccer clubs' combined revenue was $3 billion in the 2006/07 season.

Formula One's $3.9 billion is comprised of commercial rights revenues (from race sponsorship, corporate hospitality and broadcast fees), team revenues (including sponsorship and contributions from partners and owners) and circuit revenues (from ticket sales and sponsorships). However, this grand total could be dented in coming years as F1 teams are currently considering plans to cap their blockbuster budgets.

Formula Money shows that F1's costs have accelerated over the past five years, with the average race-hosting fee increasing seventy percent, from $11.3 million to $19.3 million. For the first time since 2000, the U.S. Grand Prix will be absent from F1's calendar this year after Indianapolis Motor Speedway chief executive Tony George and Bernie Ecclestone, chief executive of the F1 Group, failed to reach agreement on a new deal.

F1 is instead increasing its presence in Asia with Singapore hosting the first-ever F1 night race at the end of September. Last year almost a third of all races were held in Asia, a continent that didn't even host its first race until 1976 -- 26 years after the F1 World Championship was founded. In the next three years, new Grands Prix in India, Abu Dhabi and South Korea will join F1's calendar.

With race-hosting fees soaring, most Grands Prix no longer aim to make a profit from the event itself, and instead see it as a marketing exercise and an opportunity to put a region on the sporting map. This is in stark contrast to NASCAR, where in 2007, circuit operators International Speedway Corp. and Speedway Motorsports Inc. made net incomes of $86.2 million and $38.4 million respectively. The smaller Dover Motorsports Inc. managed a net income of $3.7 million. (**Note: The Deloitte studies did not include a full accounting of NASCAR Sprint Cup series data or revenue.)

Caroline Reid, co-author of Formula Money, said "with a ready supply of emerging markets looking to put themselves on the global map in front of F1's 597 million unique television viewers, the sport is likely to grow further east in future. However, at the same time it must make sure it doesn't lose track of its historic heartland."

Formula Money publishes an annual data report on the business behind Formula One, which provides all of the key data for understanding the industry in a single volume for the first time. It contains more than 200 tables and diagrams including a breakdown of every current sponsorship deal, all race sanction fees, the total resources of each team, and a comparison of team turnover stretching back 20 years.

The publishing partner of Formula Money is CNC (www.cnc-ag.com), the consultancy which has worked with and represented several major sponsors, all car manufacturers and eight of the teams which participate in F1.

-credit: formulamoney.com

shares
comments
Williams Barcelona test notes 2008-06-12

Previous article

Williams Barcelona test notes 2008-06-12

Next article

Bridgestone announces upcoming event tyre specs

Bridgestone announces upcoming event tyre specs
Load comments
The joy that exposes F1’s key weakness Prime

The joy that exposes F1’s key weakness

Long-awaited wins for ex-Formula 1 drivers Marcus Ericsson and Kevin Magnussen in IndyCar and IMSA last weekend gave F1 a reminder of what it is missing. But with the new rules aimed at levelling the playing field, there’s renewed optimism that more drivers can have a rewarding result when their day of days comes

The F1 figures Red Bull and Mercedes can't afford to see again Prime

The F1 figures Red Bull and Mercedes can't afford to see again

OPINION: An interloper squad got amongst the title contenders during Formula 1’s street-circuit mini-break, where Red Bull left with the points lead in both championships. But, as the campaign heads back to purpose-built venues once again, how the drivers of the two top teams compare in one crucial area will be a major factor in deciding which squad stays in or retakes the top spot

Formula 1
Jun 16, 2021
Why Alfa's boss is up to the task of securing a stronger F1 future Prime

Why Alfa's boss is up to the task of securing a stronger F1 future

Two tenth places in recent races have lifted Alfa Romeo to the head of Formula 1's 'Class C' battle in 2021, but longer-term the Swiss-based squad has far loftier ambitions. With the new 2022 rules set to level out the playing field, team boss Frederic Vasseur has good reason to be optimistic, as he explained to Motorsport.com in an exclusive interview

Formula 1
Jun 15, 2021
How Barnard's revolutionary McLaren transformed F1 car construction Prime

How Barnard's revolutionary McLaren transformed F1 car construction

The MP4/1 was pioneering by choice, but a McLaren by chance. STUART CODLING relates the tangled (carbon fibre) weaves which led to the creation of one of motor racing’s defining cars

Formula 1
Jun 15, 2021
Why the end is nigh for F1’s most dependable design tool Prime

Why the end is nigh for F1’s most dependable design tool

Wind tunnel work forms the bedrock of aerodynamic development in Formula 1. But as Pat Symonds explains, advances in virtual research are signalling the end of these expensive and complicated relics.

Formula 1
Jun 13, 2021
Why Mosley’s legacy amounts to far more than tabloid rumour Prime

Why Mosley’s legacy amounts to far more than tabloid rumour

The newspapers, naturally, lingered over Max Mosley’s tainted family history and niche sexual practices. But this is to trivialise the legacy of a big beast of motor racing politics. Stuart Codling weighs the life of a man whose work for safety on both road and track has saved hundreds of thousands of lives, but whose penchant for cruelty remains problematic and polarising.

Formula 1
Jun 12, 2021
Why pragmatic Perez isn't fazed by no-nonsense Red Bull F1 culture Prime

Why pragmatic Perez isn't fazed by no-nonsense Red Bull F1 culture

Sergio Perez has spent most of his career labouring in Formula 1’s midfield, wondering whether he’d ever get another shot at the big time. Red Bull has handed him that chance and, although life at the top is tough, the Baku winner is doing all the right things to get on terms with Max Verstappen, says BEN ANDERSON

Formula 1
Jun 11, 2021
What the data tells us about the F1 2021 title fight Prime

What the data tells us about the F1 2021 title fight

Formula 1 has been tracking car performance using timing loops mounted every 200m around each circuit – to the extent that it was able to anticipate Ferrari’s 'surprise’ pole in Monaco. PAT SYMONDS explains what this means for this season and beyond

Formula 1
Jun 10, 2021