Formula 1 set revenue records in 2024, but financial strains from the Las Vegas Grand Prix cast a shadow over the year’s success.
Formula 1 continues to deliver strong financial performances, even setting records in 2024, but its final quarter highlights some structural weaknesses, particularly around the Las Vegas Grand Prix.
In 2024, F1’s primary revenues—mainly from ticket sales and TV rights—saw a general increase. Total revenue reached $3.411 billion, up from $3.222 billion in 2023.
The addition of two extra races in 2024, with the return of China and Imola, boosted income from race promotion fees. This explains why Liberty is keen to maintain a 24-race calendar and potentially expand to 25.
At the same time, media and TV rights continued their upward trajectory. Sponsorship also benefited from new partners and increased commercial activation value.
Yet, this positive momentum masks a more nuanced final quarter.
Between October and December 2024, F1’s revenue dropped from $1.230 billion in 2023 to $1.126 billion, an 8.4% decline. This decrease was mainly due to lower media rights income and race promotion fees.
Las Vegas Grand Prix: A Failed Bet?
At the heart of the final quarter’s struggles was the Las Vegas Grand Prix. F1 took direct control of its promotion, aiming to maximize profits. However, the financial reality proved more challenging. Ticket sales underperformed expectations, while operational and promotional costs surged—a sign of a business model already losing steam?
The financial impact is clear: F1’s operating profit declined in the fourth quarter, dropping from $153 million in 2023 to $126 million in 2024, a 17.6% decrease.
Another key indicator, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), also fell in the fourth quarter, from $238 million in 2023 to $202 million in 2024, down 15.1%. However, over the full year, F1 recorded an increase in profit, rising from $725 million in 2023 to $791 million in 2024.
On an annual scale, F1 managed to grow its operating profit from $392 million in 2023 to $492 million in 2024. The overall picture remains reassuring, but Liberty’s gamble on Las Vegas is more concerning.
Over $1.2 Billion Paid to Teams
This comes as cost pressures continue to mount, leaving less room for error. While F1’s annual revenue is growing, so are its expenses.
Team payments—exceeding $1.2 billion—rose in line with the fully variable distribution model set by the 2021 Concorde Agreements, though at a slightly slower rate than revenue growth, something teams are unlikely to overlook.
Other variable costs also weighed heavily: higher transport expenses, new regulatory and logistical costs tied to calendar expansion, and, of course, the operation of the Las Vegas Grand Prix.
Domenicali Sees the Positive at Liberty Media
“Formula 1 ended 2024 with a record number of races and revenue,” said Stefano Domenicali, President and CEO of Formula 1.
The Italian remains confident.
“We are equally optimistic for 2025 as we celebrate F1’s 75th anniversary, which will give us additional momentum in terms of brand positioning. We marked this occasion by bringing the entire F1 community together for an unprecedented season launch at the O2. Our sponsor portfolio is the strongest in the sport’s history, and our commercial pipeline remains robust. This business success is matched by on-track excitement, as we expect even fiercer competition after an already tightly contested 2024 season, with several rookie drivers joining the grid.”
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F1’s Big Year Undone by Las Vegas Grand Prix Struggles F1’s Big Year Undone by Las Vegas Grand Prix Struggles F1’s Big Year Undone by Las Vegas Grand Prix Struggles
