Formula 1’s money machine churned $3.65 billion in 2024, and promoters are the ones fueling it. Hosting fees stretch from $20 million to over $60 million, just for a seat at the table.
That number is turbocharged by annual contract escalators and government desperation for the global spotlight.
Then the real game starts: operational costs running $70–150+ million per event, with infrastructure, insurance, and staffing swallowing profit margins before the fans ever show up.
Grands Prix like the Australian GP will take a $100 million loss, meaning the real ticket cost is double what’s paid.
And don’t get it twisted: general admission is for optics, not profit. The lifeblood is hospitality—F1 Paddock Club access runs you $6,000–$16,000, suites soar past $16k, while Monaco yachts trade at six figures. Hospitality margins outpace tickets 10 to 1; F1 collects the upside, while promoters bleed for the privilege.
Oh, and we haven’t even talked about sponsors, who will pay hundreds of millions a year to rub shoulders behind the velvet rope.
Vegas is the new business model: F1 running the show, keeping 100% of the take, with $934 million economic impact in 2024 and $45 million in taxes.
Bottom line: circuits survive on luxury real estate, year-round B2B cashflow, and government checks. If you’re thinking it’s just about racing, you’re stuck in 2010.
The Business of Speed Podcast
The Business of Speed Podcast is now live across all podcast players, including YouTube, Spotify, and Apple Podcasts.
What I’m Reading
’s piece here about F1 linking up with Amelia Dimoldenberg (Chicken Shop Date) is an eye-opening look into F1’s attempt at embracing content creators again.
It’s what everyone is thinking right now about McLaren and
said all the quiet parts out loud.
Well, Ferrari is falling apart, on and off the grid, and
explains why Charles Leclerc feels like a passenger in the SF-25
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