Liberty Media has released its financial report for the first quarter of 2025, revealing a significant drop in revenue for Formula 1 compared to the same period in 2024. The report highlights a downturn in earnings attributed to a shift in the race calendar, with only two races held in the first quarter of 2025, down from three in the same period last year.
The total revenue for Formula 1 fell to $403 million in Q1 2025, a stark decline of 27% from $553 million in Q1 2024. This downturn in revenue is primarily due to the decrease in primary revenue streams, which include race promotion fees, media rights, and sponsorship income. The primary revenue dropped to $319 million in 2025, down from $463 million the previous year, marking a 31% decrease.
Other revenue sources also saw a decline, with figures falling to $84 million in 2025 from $90 million in 2024, largely due to a decrease in Paddock Club activity. Additionally, Formula 1 paid out $114 million to teams in 2025, a significant drop from the $163 million distributed in 2024. The overall operating loss for the quarter stood at $28 million, a stark contrast to the operating income of $136 million recorded in the same quarter last year.
“2025 is off to a strong start,” said Derek Chang, President and CEO of Liberty Media. “Formula 1 is benefiting from exciting racing on the track and financial momentum underpinned by new commercial partnerships that took effect this year. We believe Formula 1’s contracted and diversified revenue streams position it well against the current macro and consumer backdrop.”
Despite the losses, Chang expressed confidence in Formula 1's business fundamentals, stating, “The business fundamentals remain strong and we’re confident in our ability to deliver long-term value.”
The financial report also highlighted the impact of the race calendar on revenue, noting that the 2025 schedule is set to include the same 24 events as 2024, albeit in a different order. This change in calendar has affected year-over-year revenue and cost comparisons on a quarterly basis.
Liberty Media's report also indicated that while primary revenue declined, there were some offsetting factors. The drop in media rights revenue was partially mitigated by contractual increases in fees and continued growth in F1 TV subscription revenue. Additionally, new sponsorship deals, including partnerships with Barilla Pasta and PWC, helped to stabilize some of the financial losses.
Other revenue in the first quarter also experienced a downturn, primarily due to lower hospitality and experiences revenue linked to the fewer Paddock Club events and the mix of races held. However, this decline was somewhat counterbalanced by higher freight income due to longer travel routes necessitated by the calendar changes.
In terms of operational costs, team payments decreased due to the pro rata distribution linked to the number of races held. This was somewhat offset by the expectation of higher team payments for the full year. Other costs related to Formula 1 revenue increased due to higher freight costs and commissions, although these were partially offset by lower hospitality expenses.
Additionally, the report noted that selling, general, and administrative expenses rose to $76 million, primarily due to increased marketing costs associated with the 75th season launch event at London’s The O2 and higher personnel costs.
Stefano Domenicali, President and CEO of Formula 1, remained optimistic despite the quarterly setbacks, stating, “Formula 1 is six races into another incredible season… Close racing has helped drive viewership and sell-out crowds.” He also highlighted the successful agreement on the commercial terms for the 2026 Concorde Agreement, which is expected to provide financial stability and governance for the future.
In a related development, the Grand Prix Plaza in Las Vegas opened to the public on May 2, 2025, contributing $6 million in rental income during the first quarter. However, the plaza also added to operating costs, reflecting the ongoing investment in enhancing the Formula 1 experience.
While Liberty Media reported a cash increase to $2.83 billion, total debt remained stable at $2.9 billion, with a leverage ratio slightly improved to 1.2x. The report also indicated that Formula 1 spent $33 million on capital projects and paid $131 million as an extension towards the MotoGP acquisition, which is part of Liberty’s broader motorsport expansion strategy.
As Formula 1 navigates these financial challenges, the focus remains on maintaining competitive racing and securing long-term partnerships that can help stabilize revenues. The upcoming races and the continued development of new commercial agreements will be crucial in shaping the financial future of the sport.
In light of the rising costs associated with developing sustainable fuels, Mercedes team principal Toto Wolff has called for a financially sustainable solution to the expected increases in fuel prices. Discussions at a recent F1 Commission meeting in Geneva indicated that the costs for new sustainable fuels could rise dramatically, prompting concerns among teams, especially those with tighter budgets.
Wolff emphasized the need to explore options to reduce costs, stating, “From my point of view, what makes it so expensive is that the whole supply chain and energy contribution needs to be green.” He acknowledged the challenges posed by the environmental impact of production and expressed a commitment to working with fuel partners to find viable solutions.
While some team leaders, like Red Bull’s Christian Horner, downplayed the potential fuel cost increases as a significant issue, the broader implications for teams operating on tighter budgets remain a concern as Formula 1 continues to evolve in its pursuit of sustainability.
