Good Liberty Media accounts

In the second quarter of 2022 and compared to the second quarter of 2021, the revenues of the F1 are up, from $501 million to $744 million. A clear growth of 48,5% which can be explained, according to F1, by “ an increase in revenues from race promoters, media rights due to increased F1 TV subscription revenues, royalties under contractual agreements, sponsorship revenues due to the recognition of revenues from new sponsors and revenue specific to Grands Prix generated by the diversity of events organized. »

This spectacular progress must be put into perspective since, of the first 7 Grands Prix 2021 and 2022 on which these figures are based, those of last year were affected by health restrictions and in particular the absence of the Paddock Club. This is shown by the details of the increase in primary income (from payment to promoters, TV rights, sponsors) up 35%, from 464 to 628 million dollars. THE " other income » of F1, less substantial ($116 million), still increased by 214% due to the number of events organized outside Europe, as well as an increase in hospitality revenues generated by the Paddock Club.

If F1's operating result goes from a loss of 43 million dollars (second quarter 2021) to a positive result of 49 million, it should not mask a worrying trend, since expenses are clearly increasing. First of all, payments to teams (+ 19%, from 308 to 368 million dollars), linked to the presence of an additional Grand Prix this year. But these are also and above all the administrative charges (+51%), the “ other costs » (including freight) and expenses incurred by F1 (+ 84% and + 34%) which are climbing...

« These costs have increased, points out the commercial rights holder of the championship, in the second quarter due to the increase in freight costs (..). Selling, general and administrative expenses also climbed due to increased expenses for personnel, IT, legal and other consulting costs. » An increase that the teams will want to compensate for by an increase in income. Everything is going very well, Madame la Marquise... However, we have to tell you!