Formula 1’s transformation from a European-centric motorsport into a global entertainment powerhouse has yielded another staggering milestone.
According to a new report from SponsorUnited, F1 and its ten teams collectively generated $2.04 billion in sponsorship revenue in 2024, catapulting the sport into second place among global leagues — trailing only the NFL’s $2.5 billion.
That figure puts F1 ahead of long-established American sports giants like the NBA, MLB, and NHL, marking a shift in the commercial landscape of global sports.
What’s even more telling is the manner in which this revenue is distributed. While the NFL's revenue is derived largely from league-wide deals, the F1 model sees team-level partnerships dominating the landscape.
A High-Value, Low-Volume Sponsorship Model
The average sponsorship deal in F1 was valued at $6.01 million, eight times higher than the NFL’s average of $745,000 per partnership, according to SponsorUnited’s report.
This disparity highlights F1’s ability to command premium investments for exclusive assets, such as car liveries, sidepods, and real estate on driver uniforms.
Technology and financial services dominated – and still do – F1’s sponsorship landscape, contributing $543 million and $379 million, respectively, in 2024.
Notable deals include Williams’ partnership with Atlassian, valued at $25 –$30 million annually, and a $1 billion, ten-year agreement with luxury conglomerate LVMH, encompassing brands like TAG Heuer and Louis Vuitton.
The resurgence of cryptocurrency sponsorships, totaling $174 million for F1 teams, further illustrates the sport’s appeal to high-growth sectors.
Mercedes, Ferrari, Red Bull, and McLaren lead the sponsorship revenue rankings, leveraging their on-track success and global brand recognition to attract premium partners.
The sport’s meteoric rise has been driven by Formula 1’s push into new markets, its embrace of digital storytelling (thanks in part to Netflix’s Drive to Survive), and a younger, more global audience.
But one man who knows the inner workings of this transformation better than most is Mercedes AMG F1 co-owner and team principal Toto Wolff.
Wolff on Liberty Media, Predictability, and F1’s New Era
Reflecting on the sport’s new commercial reality, Wolff credits a decisive shift in philosophy since Liberty Media acquired Formula 1 from CVC Capital and Bernie Ecclestone in 2017.
“A few years ago, people said the world was going crazy when the Dallas Cowboys were valued at $4billion,” Wolff told the Financial Times. “Now they’re worth $10bn and everybody says, how crazy is that?
“If teams are successful, the sport prospers, and the bottom line grows, higher valuations are justified. In Formula 1, it’s justified by peer group valuations, revenue multiples, EBITDA (earnings before interest, taxes, depreciation and amortisation) multiples, sustainable growth, and predictable income.”
F1’s business model has evolved into something more resilient and attractive to long-term investors. Wolff notes the strategic advantage F1 has in locking down revenue through multi-year commitments.
“Sponsorship contracts are generally three to 10 years. TV contracts, the same. You have great predictability, which you don’t always get in a conventional business.”
Read also: Formula One Group enjoys record year in revenue in 2024The sea change in how F1 operates commercially, Wolff believes, was rooted in Liberty’s fundamentally different approach to growing the sport’s brand and global reach.
“The attraction changed when Liberty bought the sport. Bernie [Ecclestone] led the sport for more than 40 years and made it big.
“But when it changed hands, the new owners pushed it up to completely new levels – the American way of looking at sports from an entertainment perspective.”
Looking Ahead: The Billion-Dollar Grid
As Formula 1 prepares for new technical regulations in 2026, its financial future seems more robust than ever.
The sport's commercial growth has not only helped smaller teams gain stability but has also attracted major global brands eager to ride the F1 wave, while minimum valuations for teams has now reached $1 billion.
With a refined entertainment-first approach, a data-rich sponsorship ecosystem, and increasingly diversified fan demographics, Formula 1’s business model is no longer in the rearview mirror of the NFL – it's in the fast lane, gaining speed.
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