Formula 1 is rapidly approaching the $4 billion annual revenue milestone, according to recently released financial accounts. The sport's revenues increased by 14 percent to reach $3.9 billion, demonstrating significant growth in global popularity and commercial success.
Financial Performance and Team Payouts
Liberty Media, the parent company that acquired Formula 1 in 2017, reported a substantial rise in team payouts ahead of the 2026 season. These payments to teams grew by 11 percent to $1.4 billion, reflecting the sport's expanding financial ecosystem. The 2026 season will mark a historic moment with Cadillac joining the grid as the eleventh team, adding to the competitive landscape.
Operating Income and MotoGP Integration
The annual report reveals that operating income climbed from $492 million in 2024 to $632 million in 2025, indicating improved profitability. Meanwhile, MotoGP, now under Liberty Media's control for its first full season, generated $325 million in revenue during 2025. This acquisition positions Liberty Media as a dominant force in global motorsport across both two-wheeled and four-wheeled disciplines.
Strategic Developments and Future Outlook
Stefano Domenicali, President and CEO of Formula 1, highlighted the sport's record-breaking 75th anniversary season. "The next chapter of F1 brings on-track excitement with a new race in Madrid, the debut of Cadillac and Audi, and the return of Honda and Ford to the grid," he stated. Domenicali emphasized the sport's strength, noting partnerships with major brands like Disney, Lego, Pepsi, Apple, and Standard Chartered.
Media rights continue to be the primary revenue driver, accounting for nearly one-third of total income. This comes as Apple enters the broadcasting arena for the 2026 season, potentially expanding the sport's audience reach. Additionally, attendances increased in 2025 compared to 2024, and a new Concorde Agreement, governing team payments, has been secured through 2030.
Leadership Perspective and Growth Trajectory
Derek Chang, Chief of Liberty Media, described 2025 as an exceptional year. "We delivered on our key strategic objectives – strengthening Formula 1’s growth trajectory, completing the MotoGP acquisition, and streamlining our structure," he said. Chang added that the focus remains on sustaining F1's momentum, positioning MotoGP for future growth, and driving shareholder value through disciplined capital management.
The financial data underscores Formula 1's robust health and expanding global appeal, with revenues poised to exceed $4 billion in the near future. The sport's strategic partnerships, new team entries, and media expansions are set to fuel continued growth and excitement among fans worldwide.
