F1 owners Liberty Media have reported a huge income and profit hike for the sport in 2023, with Formula 1 earning $3.22billion [£2.55bn] through the year.
The income jump has been largely credited to the influence of the Las Vegas Grand Prix, which was heralded as a huge moment for the sport as it headed back to Nevada for the first time in over four decades last season.
While there were teething problems on track, the fourth-quarter earnings alone from 2023 for Formula 1 suggested a 63% rise compared to 2022 – with F1 acting in a dual role of both sporting commercial rights holders and race promoters in Las Vegas.
After filing their 2023 earnings report, Liberty Media confirmed a $3.22bn income from F1 last year, up from $2.57bn in 2022, which when all costs were taken away ended up with a boost in profits to $392million [£310m], a 64% increase on their 2022 figure.
Liberty Media stated an increase in sponsorship income surrounding the Las Vegas Grand Prix played its part in boosting their income figures, as did the fact that F1 was its own promoter for the race in Nevada.
Liberty wrote in its report: “Race promotion revenue grew primarily due to ticketing revenue from the inaugural Las Vegas GP and other contractual increases in fees”, with a 5% increase in prize money having been distributed between the teams come the end of the season.
F1 CEO Stefano Domenicali said: “2023 marked another incredible season for Formula 1. We had strong engagement across all platforms, with record race attendance and F1 holding its position as the fastest growing league on social media for the fourth consecutive year.
“F1 saw continued fan growth especially in the US market, strengthened by the successful Las Vegas Grand Prix, and across a younger and more female audience.
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“Our sustainability initiatives remain a priority for F1 and our partners, and we look forward to running all seven F1 Academy races this season alongside the F1 calendar.
“We are excited for the 2024 season as we focus on deepening our relationships with fans and optimising our commercial partnerships to bring incremental value.”
Liberty Media CEO and president Greg Maffei added: “Formula 1 had another fantastic year with double digit growth across all revenue streams.
“The Las Vegas Grand Prix generated massive global buzz, and we look forward to delivering great racing, fan experiences and economic benefit to F1 and the local community for years to come.”
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