F1 Moves On Stunning Upward Trajectory As Team Values Shoot Through $500 Million Mark

Formula one is one of the fastest-growing motorsports, with its fanbase expanding each passing year. However, this wasn’t the case around six years ago. Back then, F1 was in a dire state back then, with a decreasing viewership.

The biggest reason for this growth in F1’s fandom is the takeover by Liberty Media. The American company took the reins of F1 into their hands from Bernie Ecclestone for $4.4 billion in 2016. Liberty Media’s F1 takeover was the biggest talk among the fans besides Nico Rosberg defeating teammate Lewis Hamilton in the world championship.

There has been an increase in F1 teams’ valuations

Before Liberty Media came into the picture, it was common for fans to see an F1 team not survive for more than two seasons. The owners had to sell their teams at a low price. But as the Mass media company came into the sport, they took F1 to a new height. It also helped the teams and their valuations. The F1 teams now have more valuation than they had under Ecclestone’s rule.

Liberty Media CEO Greg Maffei recently reported, “When we entered Manor, the 11th team had just been sold in receivership for a pound. And today, I don’t think you can buy a team for less than $500 million, maybe $700 million. You can go try. But it’s gonna be hard. It’s an amazing increase in value.”

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“You needed to have a healthy ecosystem of teams to make it work. And I think all those things are happening, and you’re seeing the increase in fan interest as well,” Maffei continued.

Formula One now has more sponsors

During Ecclestone’s rule, majorly there were tobacco brands that invested in this sport. But after the ban on tobacco advertisements in Formula One, it was harder for the teams to get sponsors.

But after their entry, the American company renovated the sport to attract a vast audience. It attracted various brands, including many IT companies, to sponsor the F1 teams.

“The growth of interest from people who really understand the technology has been a huge part and how that’s grown the interest among the technology communities in Silicon Valley – look at how many of the cars now have a technology sponsor, if not multiple technology sponsors,” said the Liberty Media CEO.

READ MORE: Explained: How Liberty Media’s Phenomenal Takeover Opened the Gateway to Profits & Fans in F1

The new owners have done a magnificent job of increasing the valuation of this motorsport. Let’s see how far they can take F1 in the future.