All F1 Teams worth $1 billion

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The Lead

Thanks to Liberty Media, Formula 1 isn't just about fast cars and champagne showers anymore; it's a global sensation, and much of the credit goes to that binge-worthy Netflix series, Drive to Survive. Suddenly, F1 is the hot new thing stateside, with Miami and Vegas joining the race calendar party, making it a triple threat of US Grand Prix action.

The buzz around F1's American dream isn't just idle chit-chat. CNBC's deep dive into the business of F1, "Inside Track: The Business of Formula 1," gave an inside scoop on how Liberty Media is playing 4D chess with F1, turning it into a gold mine. Sara Eisen, the whiz behind the doc, tells us it's all about following the money, and right now, that trail leads straight to the F1 grid. With team valuations hitting the billion-dollar mark, it's clear F1 is more than just a sport; it's a booming business.

£1 to $1 billion in under a decade

In 2004, Red Bull bought Jaguar Racing for $1.

In 2009, Ross Brawn bought the Honda F1 Team for £1.

Now, McLaren Racing’s CEO Zak Brown says that “all Formula 1 teams are now worth at least £1 billion.”

Official estimates from Sportico are as follows:

1. Ferrari: $3.13 billion

2. Mercedes: $2.7 billion

3. Red Bull: $2.42 billion

4. McLaren: $1.56 billion

5. Aston Martin: $1.14 billion

6. Alpine: $1.08 billion

7. AlphaTauri: $905 million

8. Alfa Romeo: $815 million

9. Williams: $795 million

10. Haas: $710 million

On average, Formula 1’s ten teams are worth $1.88 billion, according to Forbes estimates, an incredible 276% increase from the $500 million average when Forbes last valued the series’ teams in 2019 (using 2018 revenue figures). Ferrari leads the way once again at $3.9 billion—a 189% jump from 2019—with Mercedes close behind at $3.8 billion after a 274% rise.

And these F1 teams operate like Silicon Valley startups on steroids. Team bosses like Toto Wolff and Zak Brown aren't just playing with fast cars; they're spearheading global enterprises, thinking about culture, innovation, and, yes, the bottom line.

Now, let's talk about the real game-changer: sponsorship. F1's fan base is growing, and it's not just any crowd. It's young, it's diverse, and it's exactly what brands dream about at night. We're seeing tech giants like Oracle and Google not just slapping their logos on cars but integrating their tech to push the boundaries of what these machines can do. It's like Silicon Valley meets the racetrack – a match made in heaven.

But here's the kicker: it's not just about the tech. Goldman Sachs on a McLaren? That's about creating once-in-a-lifetime experiences for clients. Being a part of F1 is becoming a lifestyle, a culture, and brands are jumping on this moving train because the demographics are just too good to pass up.

Sure, not every season is going to have you on the edge of your seat like 2021, but the story here is bigger than just who crosses the finish line first. F1's challenge now is to keep this momentum going, to keep innovating not just on the track but in how it engages with its ever-expanding audience.

F1’s breakthrough in America was dreamed up by Liberty Media, the U.S. company that acquired the series in 2016 for $4.4 billion. Liberty’s biggest change was understanding the modern audience and that Formula 1 “needed to be treated as the entertainment product it really was: a prestige television drama.”

The company set out on complete reset of F1, not only modernizing how the races are broadcast but shifting the focus from teams to the drivers. Aided by some good luck thanks to the COVID-19 pandemic, Drive to Survive proved to be the best advertisement the sport could have asked for, and by the end of 2021, F1 had added more than 70 million new fans in its 10 largest markets.

With its impressive growth in U.S. viewership, the series is poised for even greater success, particularly in terms of television revenue. In 2022, Formula 1 experienced a remarkable 36% increase in U.S. viewership, attracting an average of 1.2 million viewers per race. This outstanding performance has paved the way for a groundbreaking deal with Walt Disney, propelling F1's U.S. television rights to unprecedented heights. The new agreement, spanning from 2023 to 2025, will see F1 enjoy a staggering 17x increase in average annual value, amounting to a remarkable $83 million per year.

On a global scale, Formula 1's viewership reached an impressive average of 70 million per race in 2022. This remarkable figure, coupled with the series' soaring popularity, has led experts to predict that F1's global media rights will surpass the $1 billion mark this year and skyrocket to an astounding $1.4 billion by 2029, according to a recent report by Seaport Research Partners.

Furthermore, F1's unique advantage of not having in-race ad breaks opens up exciting opportunities for additional revenue streams for ESPN/ABC. Seaport Research Partners believes that there are innovative and creative ways to capitalize on this advantage, further boosting the already impressive financial prospects for Formula 1.

With events like Vegas, F1's not just racing; it's putting on a show, one that has the potential to rival the NFL or NBA in the hearts and screens of fans worldwide. And while that’s a sore subject for the petrolheads and purists among us, the health of Formula 1 is arguably better than it’s ever been.

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An Experience You Won’t Want to Miss

I’m excited about this one, not just for obvious reasons, but because it’s one of those collaborations that offers an upscale experience without forgetting to pay homage to the series’ history.

The Legends Lounge | Schumacher sets out to celebrate the legend himself and his illustrious Formula One legacy. The lounge commemorates 30 years since his first championship win.

You’ll dive into an exclusive showcase featuring rare artifacts, Schumacher's iconic cars, and special guest appearances. Experience the extraordinary with behind-the-scenes insights into Michael's unparalleled career and the resilience that made him a legend.

You’ll also have the opportunity to attend "An Evening for Michael," a unique dining experience with F1 legends, sharing untold stories and auctioning precious memorabilia to benefit the Keep Fighting Foundation.

Read the official press release here.

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