Formula 1 teams received unprecedented prize money payments in the second quarter of 2025, as revealed by Liberty Media’s latest financial results. This surge, totaling over $513 million, followed a challenging first quarter and was significantly influenced by the release of the F1 movie.
Liberty Media’s Q2 earnings showcase a remarkable rebound after a slow start to the year. Revenue for the three months ending June 30 reached $1.226 billion, marking one of the strongest quarters under Liberty Media’s tenure managing Formula 1’s commercial rights. This surpassed the first quarter total of $403 million, which was $150 million less than the same period in 2024.
Enhanced Prize Money Reflects Heightened Competition and Engagement
The 10 Formula 1 teams are entitled to more than $513 million in prize money for Q2, a sharp increase from the $114 million distributed in Q1. The intense on-track action this season, with multiple teams and drivers battling fiercely, has contributed to this financial upswing.
Stefano Domenicali, President and CEO of Formula One Management (FOM), commented on the season’s quality:
“This season has showcased phenomenal racing, with multiple teams and drivers competing at the very highest level.”
The excitement surrounding the sport has been amplified by the recent F1 movie release, which debuted to considerable acclaim and became the largest theatrical release for any streaming service.
The cultural impact of the film, combined with thrilling racing performances, has driven notable increases in viewer engagement as well as social and digital media interaction. Official F1 social channels reported record numbers of impressions during this period, enhancing the sport’s global reach.
“Thanks to the efforts of our teams, partners and the F1 community, we are driving excellent momentum at Formula 1 on and off the track.”
—Stefano Domenicali, FOM President and CEO
Additionally, operating income at the F1 level climbed to $293 million in Q2, a significant increase from $84 million in the same quarter the previous year, underpinning the improved financial position.
Analysis of Formula 1’s Revenue Sources and Ownership Structure
Formula One Management’s main income streams are race promotion fees, broadcasting rights, and commercial revenues including sponsorship, corporate hospitality, and licensing. The number of events in Q2 2025 stayed nearly the same as in 2024, with nine races compared to eight, so the revenue gains stem mainly from other factors.
Next year could bring further changes with the U.S. broadcasting rights up for renewal. Apple, benefiting from the success of its F1-themed movie, is reportedly interested in acquiring these rights following the expiration of ESPN’s current contract. The film premiered internationally on June 26 and in the United States two days later, positively impacting Liberty Media’s financial results.
“Primary F1 revenue increased in the three months ended June 30, 2025 primarily due to the calendar variance compared to the prior year, which drove additional race promotion revenue and higher sponsorship and media rights revenue with a larger proportion of season-based income recognized during the period, as well as contractual increases in fees across all primary revenue streams,”
the latest report detailed.
“Sponsorship revenue also benefitted from revenue recognized from new sponsors. Media rights revenue also increased due to continued growth in F1 TV subscriptions and the recognition of one-time revenue associated with the release of the F1 movie.”
Prize Money Distribution Reflects Last Season’s Championship Standings
During the first six months of 2025, Formula 1 has distributed more than $627 million in prize money to teams, allocated based on the previous year’s Constructors’ Championship standings according to the terms of the Concorde Agreement, which remains confidential.
McLaren, the reigning Constructors’ Champion, is reported to have received nearly $88 million, while Sauber, positioned 10th last season, earned in excess of $37 million. These figures illustrate the sizable financial rewards at stake within F1‘s competitive hierarchy.
Outlook: Challenges Ahead for Third Quarter Revenues
Despite the impressive Q2 figures, the third quarter is expected to face financial difficulties. The traditional summer shutdown in August limits Formula One Management’s ability to generate income during this period, suggesting that Q3 revenue will not match the preceding quarter’s performance.
Last year’s Q3 revenue was about $861 million, similar to 2023, contributing to full-year totals of $3.41 billion in 2024 and $3.22 billion in 2023. The combination of exceptional Q2 results and typical Q3 variability illustrates the fluctuating nature of F1‘s financial cycles.
The increased prize money payments reinforce the sport’s growing commercial strength, driven by both exceptional sporting performances and innovative promotional ventures like the F1 movie. As broadcasting deals and sponsorship agreements evolve, particularly in key territories such as the United States, the financial landscape of Formula 1 is likely to experience further transformation.