F1 Sponsorship Surpasses $2 Billion Mark for the First Time in History

In recent years, Formula 1 has emerged as a powerhouse of sponsorships, and fresh, standalone research indicates that it generated over $2 billion in earnings for 2024. This places it second behind only the NFL in terms of annual revenue.

According to a report by SponsorUnited, F1 and its teams amassed $2.04 billion last year, surpassing several well-established American sports leagues that were once at the forefront when it came to securing sponsorship funds.

The NBA, MLB and NHL all brought in less, with only the $2.5billion from the NFL topping F1’s own figure – although the ways in which the two championships reached their respective totals could not be more different.

Throughout the series, the SponsorUnited report indicates that Formula 1 teams collectively generate an average of over $6 million each, which is approximately eight times higher than the average income the NFL earns from its partnerships.

A few years back, folks thought things had gone mad when the Dallas Cowboys were estimated to be worth $4 billion. Mercedes Team Principal Toto Wolff recently stated to the Financial Times .

George Russell, Mercedes

Image credit: Peter Fox / Getty Images

Now these companies are valued at $10 billion, and everyone asks, isn’t that insane? When teams thrive, the entire sport benefits, leading to increased profits, which justifies their high valuations. In Formula 1, this justification comes from comparing them with similar groups, looking at revenue ratios, EBITDA multiples, consistent expansion, and steady earnings.

Sponsorship agreements typically last between three to ten years, similar to television deals. This provides significant predictability, something not always found in traditional businesses. When Liberty acquired the sport, things shifted significantly. For over four decades, Bernie Ecclestone steered the industry and expanded its reach considerably. However, once control passed to new ownership, they propelled it to unprecedented heights using an American approach focused on sports as entertainment.

Read Also: A scarce Brawn F1 vehicle might sell for $6.5 million at the Miami auction.

It is unsurprising that Mercedes, Ferrari , Red Bull and McLaren The top-earning squads in regards to sponsorships have been identified, with the report also detailing which industries are currently engaged in Formula 1 alliances — highlighting that the tech sector contributes more than $500 million to the total partnership revenue among the 10 teams.

It also shows the most expensive sponsorship assets for a team, with the airbox and sidepod advertising positions worth upwards of $5million for the bigger names on the grid.