Formula 1 (F1) racing has a storied past dating back to 1950. However, the sport was propelled to new heights after its acquisition by Liberty Media in 2016 for a staggering $4.6 billion. Under Liberty’s stewardship, the focus shifted towards enhancing fan engagement, expanding the racing calendar, and attracting high-profile sponsors.
F1’s revenue hit an all-time high in 2023, setting the stage for an even more remarkable 2024. This year, an unprecedented number of races are scheduled, promising to drive the sport’s financial performance to unparalleled levels. Investors seeking to capitalize on F1’s success can consider acquiring shares of Liberty Media Formula One stock (NASDAQ: FWON.A, OTC: FWON.B, NASDAQ: FWON.K).
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A Promising Start to 2024
F1, a truly global phenomenon, traverses continents from Europe to Asia, the Middle East, and the Americas in each season. Race weekends are a spectacle, with 10 teams fielding 20 cars vying for championship points. Notable automotive giants such as Ferrari, Mercedes-Benz, Aston Martin, and McLaren are amongst the prominent team participants.
The heightened success of F1 teams has led to a surge in brand interest within the sport. The entry of Ford as an engine supplier to Red Bull Racing in 2026, and Audi’s acquisition of the Sauber team in the same year, underscores the momentum driving the sport forward.
With a record-breaking 24 races scheduled for 2024, including the return of the Chinese Grand Prix and the repeat appearances of Miami and Las Vegas on the calendar, surpassing last year’s impressive attendance figures seems inevitable.
Forecasted Revenue Surge in 2024
Formula 1’s revenue sources primarily stem from media rights fees, race promotions, and sponsorship fees. In 2023, F1 reached a milestone by raking in a record $3.22 billion in revenue, marking a substantial 25% increase over the previous year.
The addition of the Las Vegas Grand Prix significantly contributed to this surge, driving a notable rise in F1’s “other” revenue category. Particularly, the event in Las Vegas generated substantial hospitality and experiential revenue, boasting a remarkable $1.2 billion economic impact on the local community.
Anticipated by Wall Street, 2024 is poised to witness another revenue milestone for Formula 1, with an expected inflow of $3.74 billion, representing a substantial 16% growth over the impressive 2023 results.
Investing in Formula 1 Stock
The upward trajectory of Formula 1’s attendance and financial achievements indicates a bright future for investors. The significant entry of new automotive brands into the sport in 2026 is likely to attract a broader fan base, while potential expansions in the grid by 2028 could substantially boost revenue streams.
Rumors circulate regarding potential alterations in F1’s TV and streaming deals, which served as substantial revenue drivers in the prior year. The speculation of Apple’s potential bid for global broadcast rights at a staggering $2 billion annually could potentially double the sport’s current media revenue.
Classified into three categories, Liberty Formula One stock offers investors a choice between Class A shares (NASDAQ: FWONA) with voting rights and Class C shares (NASDAQ: FWONK) without voting rights, both poised to track the sport’s performance equally.
As Formula 1 gears up for a landmark year ahead, investors eyeing long-term growth opportunities may find the sport’s stocks a compelling investment choice. With substantial developments on the horizon and record-breaking revenue forecasts, Formula 1’s financial ascent is one to watch closely.
