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.
Figures released by Liberty Media show #F1‘s revenue in the first three months of 2024 climbed by nearly 50% on 2023.
The total was up to $553 million, with one extra race in the three-month window helping the rise.
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— RacingNews365.com (@Racingnews365C) May 8, 2024
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.
Formula One Licensing has applied for trademarks for:
– Chicago Grand Prix
– Formula 1 Chicago Grand Prix
– Grand Prix of Chicago
– Formula 1 Grand Prix of ChicagoReminder anybody can apply for a trademark. Ironic that NASCAR is running a race in Chicago.
h/t @formula1god pic.twitter.com/3CobUUSOLK
— Vincenzo Landino (@vincenzolandino) January 27, 2024
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.
