McLaren CEO, Zak Brown, stated that all 10 Formula 1 teams in 2024 are valued at over £1 billion. Brown shared this information when discussing the financial aspects of the sport and how Formula 1 owners, Liberty Media, have made significant contributions. Since acquiring the sport in 2017, Liberty has implemented a franchise model, similar to American professional sports leagues like the NFL and NBA, to ensure a more equitable distribution of prize money and broadcast profits among teams. This, along with cost cap regulations, has put the entire grid on a stable financial footing. Brown revealed that half of the teams are now profitable, a significant improvement from five years ago.
Brown’s valuation of £1 billion or more for each of the 10 Formula 1 teams aligns with recent investments made in Alpine and Aston Martin. An investment group, which includes Hollywood stars Ryan Reynolds and Rob McElhenney, as well as sports icons Anthony Joshua, Patrick Mahomes, and Travis Kelce, bought a 24% stake in Alpine for €200 million (£171 million) last year, valuing the team at around €800 million at the time. Similarly, Aston Martin sold a minority stake to private equity group Arctos Partners, valuing the team at £1 billion.
Given the success and profitability of Formula 1 teams under the management of Liberty Media, it is not surprising that new potential teams are eager to join the sport. Andretti, for example, has expressed interest in becoming the 11th team after a bidding process led by the FIA. However, the 10 existing teams, which faced financial challenges during the Covid pandemic, were hesitant to share the financial rewards with another team. Formula One Management (FOM) and Liberty Media shared this sentiment, and Andretti’s attempt to join Formula 1 was ultimately unsuccessful. FOM cited several reasons for its decision, including the perceived lack of value of the team for the series.
Brown emphasized that Liberty Media’s priority is to protect the value of the 10 existing teams. Before Liberty’s involvement, teams were struggling and even leaving the sport. But now, in the post-Liberty era, there are numerous teams interested in joining Formula 1. Liberty Media is carefully considering how, when, and if new teams should be allowed to enter the sport.
One aspect of Formula 1 in the Liberty era is the expansion of the calendar, both in terms of the number of races and the inclusion of new locations.
The 2024 calendar will have a record 24 races, with recent additions in Saudi Arabia, Qatar, Miami, and Las Vegas. The last two were added due to the growing popularity of Formula 1 in the United States.
The extension of the calendar, with its 24 races, has sparked discussions about the fatigue experienced by professionals traveling in Formula 1. However, as more regions express interest in hosting races and are willing to invest in the sport, there are concerns that the calendar may continue to expand.
Stefano Domenicali, CEO of Formula 1, suggested that 24 races may be the limit. He even hinted at the possibility of rotating European races to make room for new markets. This idea has been proposed before by Brown.
Brown stated: “If we needed to add more races, I believe Asia would be an important region. Countries like India and South Africa could provide us with a truly global presence.”
© 2024
Soccer star Cristiano Ronaldo made history once again by scoring his 800th goal in his career during yesterday’s match. The Portuguese player, who currently plays for the Italian club Juventus, reached this impressive milestone by converting a penalty kick in the 35th minute of the second half.
Ronaldo, who has played for top teams like Manchester United and Real Madrid, is considered one of the greatest players of all time. His unmatched skill and talent place him at the top of the list of the world’s best.
In addition to his on-field accomplishments, Ronaldo is also known for his generosity off the pitch. The player has a foundation that helps underprivileged children and has donated millions of euros to various social causes.
At just 35 years old, Cristiano Ronaldo still has a lot to offer to soccer and will certainly continue to break records. His next challenge will be the next Juventus match, where he will seek another victory for his team.
Ronaldo’s fans are eager to see what else the player will achieve in his brilliant career. With his unmatched determination and talent, there is no doubt that he will continue to write his name in the history of soccer.
