The Gryphon Gazette

By Mihir J. ‘25

I’m sure many people have now heard about this “new” sport, Formula 1. But how did this sport gain so much popularity in the last decade? 

In 2012, Formula 1 was valued at $9 billion. Now, its estimated worth has soared to over $15 billion. The rapid growth of Formula 1 in recent years has been nothing short of astonishing. In 2023, the average valuation of a Formula 1 team reached $1.88 billion, marking a staggering 276% increase from the $500 million average in 2018. However, what lies behind this remarkable transformation? How did Formula 1 manage to bounce back from its previous struggles and emerge bigger and better than ever before?

For those less familiar with the sport, Formula 1 stands as the pinnacle of motorsport. Its races span the globe, from the exotic night races in Qatar’s desert to iconic tracks like the Monaco street circuit. Formula 1 comprises ten teams, each with two drivers. These teams take on the task of designing, developing, and testing their own cars, all subject to regulations set by the FIA (Fédération Internationale de l’Automobile), the governing body of the sport. Unlike Nascar or IndyCar, where every driver competes in identical cars, Formula 1 operates as a constructor’s championship, with each team fielding their unique cars, each possessing its own strengths and weaknesses. But what events led to Formula 1’s resurgence, especially considering its previous struggles?

Formula 1’s ascent to global prominence began in early 2017 when Liberty Media acquired Formula 1 in its entirety for $8 billion, just 11% lower than its valuation at that time. Their initial priority was to launch new marketing initiatives aimed at attracting brands and new audiences to the sport, with one of the most well-known campaigns being the Netflix series, “Formula 1: Drive to Survive.”

“Drive to Survive” is a documentary-style show that provides viewers with a behind-the-scenes look at the trials and tribulations faced by teams and drivers, both on and off the track. This show introduced viewers to different facets of Formula 1 personalities, previously unexplored and untouched by the media. For instance, one early episode spotlights the relationship between two Spanish drivers, Carlos Sainz and Fernando Alonso, aptly titled, “The King of Spain.” This episode delves into the unique dynamic between Carlos, who grew up idolizing Alonso, and Alonso, creating a rivalry between the two drivers that climaxes at their home race, the Spanish Grand Prix in Barcelona. 

By developing new characterizations for its drivers, the success of “Drive to Survive” was instrumental in galvanizing support for the sport in the US, drawing attention from both younger and older demographics. This expansion translated into substantial benefits for Formula 1, witnessing a 40% surge in US viewership, soaring from an average of 538,000 viewers per race in 2017 to 1.21 million in 2022.

With such a rapid and substantial growth trajectory, new investors are eager to join the Formula 1 bandwagon. Moreover, existing companies are looking to maintain their investments and capitalize on the sport’s burgeoning appeal. ESPN, for instance, has renewed its marketing rights deal with Formula 1 until 2025, boosting their contract value from $5 million annually to a potential $75 to $90 million per year, marking an astounding increase of 1800%. Apple has also entered the arena, partnering with seven-time world champion Lewis Hamilton to develop a documentary showcasing his life, career, and journey in Formula 1.

Although Formula 1 pales in comparison to other professional sports such as the NFL or NBA, its growth is nothing short of remarkable. As the sport continues to thrive, it attracts not only fans but also new investors and collaborations, further solidifying its position as one of the world’s premier motorsports.