F1 Racing - A Billion Dollar Sport

Out of all the big motorsport organisations, when one thinks about money, Formula One has to come out on most peoples top 10 lists of most expensive motorsport. The money spent each season goes into the billions and the competition and desire to be the top constructor and racer continues to increase every year.

Even if you forget the cost of the cars, and the technicians who’re involved in year round development and research you only have to look at the cost of the venues where even track preparation can go into the thousands of dollars, and with many venues specially built just to accommodate the F1 racing event, it’s no wonder that entry into becoming an F1 racing track is so difficult.

Media & Publicity

The Formula One Grand Prix is one of the worlds most highly publicised events and the prestige factor associated with it is second to none. Around the world newspapers and magazines attempt to outdo each other to get the latest scoop and updates in this high tech industry.

The advertisements aired during F1 racing events can generate millions of dollars in revenues for the lucky television company that secures the rights to its viewing. Millions of fans and car enthusiasts from more than 200 countries around the world tune in for each race making it a highly sought after slot on any tv networks advertising line up. In fact almost all of the major Formula One drivers have become celebrities and with endorsements that play into the millions of dollars, it’s no wonder why the sport is so competitive.

Team Spending

In 2003, F1 magazine calculated the spending of 10 Formula One teams to be over 2 billion dollars with Ferrari taking the top spot with a spending budget of almost half a billion dollars.