Liberty Media Drives F1 to Record Financial Year, Q3 Revenue Hits $869M

Liberty Media is on track for its most lucrative year in Formula 1 history, announcing robust third-quarter earnings that underscore the sport's burgeoning financial success. The company reported $869 million in F1 revenue for the three months ending September, an $8 million increase over the previous year.

Why it matters:

Formula 1's financial strength directly impacts its growth trajectory, allowing for further investment in the sport, larger payouts to teams, and expansion into new markets. A record-breaking year for Liberty Media signals F1's increasing global appeal and solidifies its position as a premier global sports entertainment property.

The details:

• Revenue Milestone: For 2025 to date, Liberty Media has generated $2.498 billion in F1 revenue, matching its full-year income from 2022 with a quarter still remaining. With Q4 historically contributing over $1 billion, Liberty Media is poised for its best financial result since acquiring F1 in 2017.
• Team Payouts: F1 teams have received $968 million this year, representing approximately 39% of Liberty's F1 income. In Q3 alone, $341 million was distributed to teams as prize money.
  • Prize money is allocated based on the current season's income and the previous year's championship standings.
  • Last year's Constructors' Champions, McLaren, are estimated to have pocketed $114.6 million.
  • Mercedes and Ferrari, benefiting from success bonuses tied to historical performance (the last 10 years), are believed to have received $159.6 million and $192 million, respectively.
• Broadcast Deals: F1 continues to expand its broadcast reach with significant new agreements:
  • A landmark deal with Apple for U.S. broadcast rights replaces ESPN, targeting a crucial growth market.
  • New agreements have also been secured with Globo in Brazil and Televisa in Mexico.
• Race Hosting Extensions: The Azerbaijan Grand Prix has secured a four-year extension, a key development given Baku's reputation as potentially the highest-paying event on the F1 calendar, estimated at $60 million annually.

What's next:

The positive financial trend is expected to continue as F1 capitalizes on its expanding global footprint and strategic broadcast and hosting deals. The robust financial health empowers Liberty Media to further invest in the sport's infrastructure and fan experience, potentially leading to even greater revenue generation and broader appeal in the coming years.