Analysis: How sponsorship keeps F1 teams afloat

Formula 1 teams rely on two main revenue streams: prize money paid by commercial rights holder Liberty Media (trading as F1) and sponsorship income – the latter a fixture in F1 since 1968 after the FIA permitted commercial liveries and non-trade logos. There is also a third (indirect) stream: the ‘bartering’ of goods and services, usually where these are ‘trade’ products or used internally by the team.

The split between prize money – derived predominantly from race hosting fees and the sale of broadcast rights with some contributions from high-end hospitality and trackside advertising - and commercial income varies from team to team but, as a rough guide, pans out at approximately 50:50 across the full spectrum. Obviously, the more successful teams generate greater prize money and enjoy larger commercial income.