How Do Formula 1 Teams Make Enough Money to Cover Their Expensive Operations?

When we take a look at business operations like those happening with Formula One racing, it can be absolutely awe-inspiring to see how much money these businesses are raking in. Between the drivers making tens of millions of dollars and teams making billions, it could be mind-boggling to try and wrap one’s head around where all parties involved come up with all of this cash to keep everyone paid. When we put it in perspective, some teams are worth more than the GDP of a variety of small countries.

This time, we ride along with The Racing Pilot as they break apart the financial structure of how a business like Formula One operates. At the end of the day, this multi-billion-dollar business is a well-oiled machine that has a lot of moving parts invested in making sure that the bottom line is maintained and grown.

In this one, we get to learn about exactly which teams spend the most money and how exactly they get it back with an epic return on the investment. In addition to breaking down how the teams spend this cash on each aspect of their racing team, we learn all about how sponsors, investment, and even F1 payouts play into the mix. The pieces all fit together so seamlessly that F1 has basically become a license to print endless money.

The video below even takes some time to dive into some of the more nuanced aspects of spending money on the sport. For example, as it turns out, some teams have a little bit more to spend than others but this year, F1 is looking at a budget cap that is going to attempt to make the series even more competitive so that nobody can buy their way to victory.

Prepare to be amazed because some of the numbers being thrown around here are nothing short of incredible.