The 2022 and 2023 Formula 1 seasons brought about significant changes in the calendar and financial outcomes for the sport. With new races added and old ones removed, along with a rise in revenue and operating profit, it is evident that these two seasons played a crucial role in shaping the future of Formula 1.
The addition of the F1-promoted street event in Las Vegas and the Qatar GP, along with the disappearance of the France Grand Prix and the cancellation of the Imola event in 2023 due to weather conditions, showcased a mix of new opportunities and challenges for the sport. These changes in the calendar contributed to the overall success and financial performance of the 2022 and 2023 seasons.
Financial Performance
The total revenue for the years 2022 and 2023 saw a significant increase of 25%, rising from $2.573 billion to $3.222 billion. Similarly, the operating profit also saw a substantial rise of 64%, climbing from $239 million to $392 million. These numbers indicate a positive trend in the financial health of Formula 1 during this period.
The total payments shared between the 10 teams participating in Formula 1 rose from $1.157 billion to $1.215 billion, representing a 5% increase. This increase in revenue distribution among the teams highlights the improved financial stability and growth opportunities within the sport.
The addition of the Las Vegas Grand Prix significantly impacted the revenue generated by Formula 1, particularly in the final quarter of the year. The success of the event not only boosted race promotion revenue but also contributed to increased sponsorship revenue. The recognition of revenue from the Las Vegas GP, along with income from new sponsors, played a crucial role in enhancing the financial performance of Formula 1.
Financial Challenges
While the new races and increased revenue were positive developments for Formula 1, there were also associated costs and expenses. The costs of promoting, organizing, and delivering the Las Vegas GP, as well as higher hospitality costs at other events, led to an increase in overall expenditure. Despite the rise in costs, the financial performance of Formula 1 remained strong, reflecting its ability to navigate financial challenges effectively.
F1 CEO Stefano Domenicali highlighted the successful aspects of the 2023 season, emphasizing the strong engagement across all platforms, record race attendance, and F1’s position as the fastest-growing league on social media. The growth in fan base, especially in the US market, and the success of the Las Vegas GP further solidified Formula 1’s position as a leading global sport. Additionally, the focus on sustainability initiatives and the upcoming F1 Academy races underscored the organization’s commitment to long-term growth and development.
The 2022 and 2023 Formula 1 seasons were pivotal in shaping the future of the sport. With new races, increased revenue, and a strong focus on fan engagement and sustainability, Formula 1 demonstrated its ability to adapt to changing circumstances and thrive in a competitive environment. By addressing financial challenges, exploring new opportunities, and prioritizing fan experience, Formula 1 continues to set the standard for premier motorsport entertainment.