Business Breakdowns

Formula One: The Iconic Motor Sport - [Business Breakdowns, EP. 14]

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Jun 23, 2021
Join Stefano Domenicali, CEO of Formula 1, and investor Arman Gokgol-Kline as they explore the thrilling world of motorsport. They dissect F1's intriguing business model, from revenue streams to the impact of the Netflix series 'Drive to Survive' on fan engagement. Hear about Stefano's journey with Ferrari, the sport's push for sustainability, and the importance of teamwork. They also discuss the Concorde Agreement's role in revenue sharing and the exciting potential growth opportunities in the U.S. market, making for a captivating look into a beloved sport.
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INSIGHT

F1's Huge Global Fanbase

  • Formula One boasts a massive global fanbase of roughly 400 million unique fans.
  • This surpasses other major sports leagues like the NFL (100M) and the Premier League (300M).
INSIGHT

F1 Revenue Streams

  • F1's revenue comes from three main sources: race promotion fees, broadcast rights, and sponsorships.
  • Race promotion fees make up just under a third of F1's revenue.
INSIGHT

Race Promotion Economics

  • Race promoters pay F1 a fee to host a race, ranging from near zero (Monaco) to $30M+ for flyaway races.
  • Profitability depends more on the promoter's monetization skills than the fee paid to F1.
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