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Is Formula 1 the biggest sport in the world, commercially? With the 24 races, 10 teams and 20 drivers, sharing over 150 partners it would be hard to argue against "yes" to the above question. It would also be hard to argue that the takeover of F1 by Liberty Media and the following "Drive to Survive" series on Netflix hasn't contributed to the commercial growth in the sport over the last 5-7 years, that has been supercharged by the growth in the US The CNBC video below provides a great insight into the commercial landscape of Formula 1 and thought process behind a number of teams on what they look for in a partner but also, the importance of a solid activation plan once the rights have been secured. I think James Vowles said it best, "I'm not looking for sponsors, I'm looking for partners", and there is a subtle, but significant different between the perception of those two words. If you have 15 minutes and are interested in the commercial side of F1, it's well worth a watch! #formula1 #commercial

The number of partners have dropped in Formula 1 2024. Many Formula 1 teams have fewer partners 2024 than they had in 2023. Here are four examples (picture below). There are a couple of reasons why Formula 1 teams tend to downsize the partnership networks. 👉 The quality of the Formula 1 partnership network and the partners in the network altogether 2024 is probably the best ever in the history of Formula 1. These are my personal opinions, so feel free to have a different view 😀

American Formula 1 partners are significantly larger companies compared to European Formula 1 partners. While this may not be surprising, the difference is indeed substantial. In this picture, the revenue of all U.S. partners in Formula 1 is compared to the revenue of all Formula 1 partners from Europe.

Liberty Media Total Formula 1 Revenue Q12017-Q32024. This image highlights the consistent growth in Formula 1's revenue streams while also illustrating the sharp decline during the first two quarters of 2020. Notably, in Q4 2023, revenues surpassed $1.2 billion for the first time, driven by the success of the Las Vegas Grand Prix. Looking ahead, Formula 1 is likely to see another billion-dollar milestone in 2024, with the upcoming Las Vegas GP expected to play a major role in driving revenues further.

What does the Dorna FIM partnership mean for the Liberty Media acquisition?? Is the acquisition still happening? In short yes! The news yesterday that Dorna has agreed to a long term deal with the FIM, while exciting, has no real impact to the deal. The $4.2 billion purchase for 86% of Dorna is still set to happen but has somewhat stalled in recent weeks. Liberty Media has even sold $825 million worth of shares in Formula 1 to get the deal across the finish line. However, this partnership between Dorna and FIM is slightly odd, given the previous agreement went until 2046. This new one goes until 2060… So is this a way of shifting focus away from the partnership stalling? Or a sign of the larger commitment that Dorna has to racing and the FIM? Either way, the success, like anything in life, will depend on the three party’s working relationship. Needless to say, the future of MotoGP looks bright!

Something we are focusing on at Oscar Mike Group, LLC in the future is sports valuation. Formula 1 has recently captured the attention of new markets and made the best of their opportunities since Liberty Media's investments, skyrocketing their valuation. Here is an interesting article with quotes from Zak Brown, CEO of McLaren Racing. I found the end of the article, when they discuss scarcity, particularly interesting. Oh, and Mr. Zak Brown, if you'd like a more detailed valuation, give us a shout. https://lnkd.in/eR8naf4F

Classic book on the rise and rise of Formula 1 ! The book mentioned in the context post highlights the significant growth and development of Formula 1 over the years, showcasing its evolution into a prominent global sporting event.

Las Vegas GP Revenue 2023 --- F1 Revenue Rise: Formula One's total revenue for 2023, which included the Las Vegas race, jumped to $3.2 billion USD, a 25% increase compared to 2022 . Strong Q4: The strong revenue growth was particularly evident in the final quarter, which coincides with the Las Vegas race. This suggests the Las Vegas Grand Prix significantly contributed to F1's financial performance.

Las Vegas GP Revenue 2023 --- F1 Revenue Rise: Formula One's total revenue for 2023, which included the Las Vegas race, jumped to $3.2 billion USD, a 25% increase compared to 2022 . Strong Q4: The strong revenue growth was particularly evident in the final quarter, which coincides with the Las Vegas race. This suggests the Las Vegas Grand Prix significantly contributed to F1's financial performance.

Las Vegas GP Revenue 2023 --- F1 Revenue Rise: Formula One's total revenue for 2023, which included the Las Vegas race, jumped to $3.2 billion USD, a 25% increase compared to 2022 . Strong Q4: The strong revenue growth was particularly evident in the final quarter, which coincides with the Las Vegas race. This suggests the Las Vegas Grand Prix significantly contributed to F1's financial performance.