By Carl Jackson
In Liberty Media’s 2022 annual results, Formula 1 demonstrated remarkable performance as it rebounded from the effects of the COVID-19 pandemic. Several key points from the article can be summarized as follows:
- Attendance and Turnover: After three years with attendance restrictions, F1 reported a 36% increase in attendance compared to 2019, the last unrestricted season before the pandemic. This surge in interest was, in part, attributed to the success of the “Drive to Survive” Netflix series. F1 achieved an impressive turnover of over $2.5 billion in 2022, marking a 20% year-on-year increase.
- Operating Profit: The operating profit of the F1 business, after distributing payments to the 10 teams, increased from $92 million to $239 million.
- Future Strategy: F1 and Liberty have ambitious plans to sustain the sport’s growth and appeal, both on and off the track. They aim to enhance the racing experience with innovations like sprint races, increase fan engagement, and continue initiatives like “Drive to Survive.” A new movie, featuring Brad Pitt and produced by the team behind “Top Gun: Maverick,” is also in the works.
- Las Vegas Grand Prix: The return of F1 to Las Vegas is a pivotal part of F1’s strategy to expand its presence in the USA and globally, capitalizing on the increased fan interest generated by “Drive to Survive.” The Las Vegas event is significant because F1 is the promoter, working with the city and major casinos.
- Investment in Las Vegas: F1 made a substantial investment by constructing a permanent pit and paddock facility near the Las Vegas Strip, which includes the starting grid and nearby corners. This move is expected to provide long-term advantages and cost savings compared to temporary pit complexes.
- Economic Opportunity: The Las Vegas Grand Prix is anticipated to be highly profitable for F1, projected to be among the top five races in terms of total profit to the company in its first year, on par with some of F1’s biggest-paying races in the Middle East.
- Future Expansion: F1 expressed a willingness to explore similar partnership deals like the one with Miami in other locations. However, it emphasized that Las Vegas’s uniqueness and economic potential make it an exceptional case.
In summary, F1’s resurgence and ambitious plans for the future, along with the return of the Las Vegas Grand Prix, showcase the sport’s determination to expand its presence and captivate fans worldwide. The economic success and the Las Vegas business model are under close observation, promising exciting developments for the sport.
FAQ:
1. What contributed to F1’s remarkable performance in 2022?
- F1’s performance was driven by the lifting of attendance restrictions, a 36% increase in attendance compared to 2019, and the success of the “Drive to Survive” series.
2. How much was F1’s turnover in 2022, and what was the operating profit?
- F1’s turnover in 2022 exceeded $2.5 billion, with an operating profit of $239 million, after payments to the 10 teams.
3. What is F1’s strategy for the future?
- F1 aims to sustain its growth by enhancing the racing experience, engaging fans on and off the track, and producing new content like movies. The return of the Las Vegas Grand Prix is a pivotal part of this strategy.
4. What is the significance of the Las Vegas Grand Prix to F1?
- The Las Vegas Grand Prix is vital for F1’s expansion in the USA and globally. It is expected to generate substantial profits and capture the attention of new fans.
5. What is F1’s investment in Las Vegas, and what advantages does it offer?
- F1 invested in a permanent pit and paddock facility near the Las Vegas Strip, reducing annual costs and logistical challenges associated with temporary setups.
6. Are there plans for further expansion similar to Las Vegas?
- F1 is open to exploring similar partnership deals in other locations, but Las Vegas’s unique economic potential makes it a special case.