The Secret Business Model Behind Formula 1 | Backstory Archive

Formula 1 is more than the world's most famous racing championship. Behind the cars, drivers and dramatic races is a global business generating billions of dollars every year. In 2025, Formula 1 generated approximately $3.9 billion in revenue and $632 million in operating income. But where does all that money actually come from? In this documentary, we break down the business of Formula 1 and explore how F1 makes money from media rights, race promotion, sponsorship, hospitality, licensing and digital platforms. We also look at how Liberty Media transformed Formula 1 into a larger global entertainment business, the role of Netflix's Drive to Survive, the growth of F1's global audience, the relationship between Formula 1 and its teams, and how the cost cap has changed the economics of the sport. From television contracts and billion-dollar sponsorships to race promoters and team payments, Formula 1 has created a business model that turns a racing championship into a global entertainment machine. In this video, you'll discover: • How Formula 1 makes billions of dollars • Where F1's revenue actually comes from • How media rights generate revenue • Why race promoters pay Formula 1 • How sponsorship works in F1 • How Liberty Media transformed the business • The impact of Drive to Survive • How Formula 1 makes money from hospitality and digital platforms • How Formula 1 distributes money to teams • What the F1 cost cap means for teams • Why Formula 1 has become a global entertainment business Formula 1 had a global fanbase of around 827 million in 2025, while total race attendance reached approximately 6.7 million. That growing audience gives F1 more opportunities to monetize broadcasting, sponsorship, events and digital content. The racing may happen on the track, but the real business of Formula 1 happens behind it. Welcome to Backstory Archive — exploring the companies, strategies and hidden business models shaping the modern world. ━━━━━━━━━━━━━━━━━━ SOURCES Liberty Media — 2025 Annual Report: https://www.libertymedia.com/investor... Liberty Media — 2025 Financial Results: https://www.libertymedia.com/investor... Formula 1 — 2025 Season Review: https://corp.formula1.com/formula-1-2... Formula 1 — 2025 Season in Numbers: https://www.formula1.com/en/latest/ar... FIA — 2025 Formula 1 Financial Regulations: https://www.fia.com/system/files/docu... This video is created for educational and documentary purposes. Information and financial figures are based on publicly available company and Formula 1 sources. Subscribe to Backstory Archive for more documentaries about the world's biggest companies, brands, sports and business strategies. #Formula1 #F1 #BusinessDocumentary #SportsBusiness #BackstoryArchive