Formula 1 sponsorship breaks the two-billion mark

(Motorsport-Total.com) - Formula 1 has become a true sponsorship giant in recent years - and new, independent studies show that over two billion dollars were earned in 2024. Only the NFL generates higher annual revenues.

A report by SponsorUnited shows that Formula 1 and its teams generated $2.04 billion last year - more than several established US sports leagues that previously led in sponsorship revenue.

The NBA, MLB, and NHL (basketball, baseball, and ice hockey) all fall below this figure, with only the NFL (American football) exceeding the Formula 1 figure at $2.5 billion - although both leagues arrive at these sums in very different ways.

According to the SponsorUnited report, Formula 1 teams generated an average of over six million dollars each – about eight times the average sponsorship revenue of an NFL team.

"A few years ago, everyone thought the world was crazy when the Dallas Cowboys were valued at four billion dollars," Mercedes team boss Toto Wolff recently told the Financial Times .

"Today they're worth ten billion, and everyone's asking: How crazy is that? When teams are successful, the entire sport benefits, and ultimately, the company's value increases. In Formula 1, this is justified by comparables—such as revenue multiples, EBITDA multiples, sustainable growth, and predictable revenues."

#10 Sauber & Chelsea FC: The Swiss Formula 1 team and the London football team became partners in 2012. The idea behind the deal was to give both brands exposure outside their core audiences and to exchange know-how. At the time, Chelsea FC was owned by Russian billionaire Roman Abramovich, whom Bernie Ecclestone tried unsuccessfully to persuade for years to commit to Formula 1. Photo gallery

"Sponsorship contracts usually run for three to ten years, just like TV contracts. So you have a high degree of predictability – which is not a given in traditional companies," says the Austrian.

"The appeal changed when Liberty took over the sport. Bernie [Ecclestone] built and made the sport great over 40 years. But with the change of ownership, the new owners took it to a whole new level—with the quintessentially American view of sport as entertainment."

Unsurprisingly, Mercedes, Ferrari, Red Bull, and McLaren are among the teams with the highest sponsorship revenues. The report also highlights which industries are now involved in Formula 1 partnerships—with the technology industry leading the way, accounting for over $500 million of revenue among the ten teams.

In addition, the most expensive advertising spaces on a car are listed: For example, placements on the airbox and sidepod for the major teams each bring in more than five million dollars.