Formula 1 revenues down in second quarter: THIS is the reason
F1 News
- GPblog.com
The almost last-minute cancellation of the Grand Prix weekend in Imola has cost Liberty Media - Formula 1's parent company - millions of euros, although it is unclear exactly how much. That the cancellation of Imola had an effect on the sport's revenues was reported during the US company's presentation of quarterly figures. In the second quarter of 2023, revenue was $20 million lower than the same period a year earlier.
In 2023, six Grands Prix were held in the second quarter, compared to seven in the same time frame in '22. As is well known, the race in Emilia-Romagna could not take place due to heavy flooding. Still, even without Imola included, revenues from fees paid by Grands Prix organisers increased overall. Formula 1 also had more revenue from sponsorship. This was offset by a drop in revenue from media rights, as one less Grand Prix was thus finished. Inflation, high transport costs and lower hospitality revenues also reduced revenues.
Organising Las Vegas already cost many millions
Normally, Grands Prix organisers pay a fee to Formula One Management (and thus Liberty Media) to host a race. Liberty Media will host a Grand Prix entirely in-house in Las Vegas for the first time later this year. At other races on the calendar, the cost of organising is kept secret. Since Liberty Media is listed on the stock exchange, it does have to disclose its expenses to some extent. As a result, it is clear that seven million dollars was spent in the second quarter on costs related to the organisation of the GP in the US gambling city.
Commenting on the figures, FOM CEO Stefano Domenicali said: "Formula 1 is capitalizing on our growth momentum and our fans are engaging with the sport across traditional, digital and social media platforms. We congratulate Red Bull on their record-breaking performance season-to-date, and are thrilled to see the gaps closing across the rest of the grid to produce exciting rivalries on track,” said Stefano Domenicali, Formula 1 President and CEO. “Next year we will host 24 races around the globe, with back-to-back races in closer proximity which will benefit the efficiency of operations for both F1 and our teams."