In the 1970s, tennis was the sport that excited the wealthy and those aspiring to be wealthy. People were all about the country club lifestyle. In the 1990s and 2000s, it was golf, with Tiger Woods spurring interest in the sport.
Now Formula One (NASDAQ: FWONK) auto racing is the big new thing in the U.S. The European-centric race circuit began 75 years ago in the U.K. and has now spread to Austin, Texas (2012); Miami (2022); and Las Vegas (2023).
The sport has proven to be wildly popular in the U.S., with the three races drawing more than 1 million spectators combined last year, according to F1 Destinations’ estimate. Upscale packages for attending the events include luxury hotel rooms, special viewing areas, gourmet food, and experiences, such as garage tours. That can cost over $50,000 for three days.
The Netflix reality show “Formula 1: Drive to Survive”, which began six years ago, has helped spark U.S. interest in the sport. The series follows drivers, team owners and others in the F1 world. More than 700 million people have watched worldwide, according to F1.
Movies and motorcycles
The movie “F1”, released in June, also could drive eyeballs to F1 racing. It stars Brad Pitt as a driver who returns after a 30-year absence to save his former colleague’s team from collapse. The film has drawn millions of viewers, and grossed $144 million in its opening weekend.
F1’s $4.2 billion purchase of motorcycle racing circuit MotoGP in July may help the company diversify its revenue. “The health of the [motorcycle] league is further along than where F1 was when it was acquired in 2017,” Susquehanna analyst Eric Mondelblatt wrote in a report cited by Barron’s.
Liberty Media, founded by media industry legend John Malone, was the buyer then. It’s a conglomerate that also owns 30% of Live Nation Entertainment, the largest live entertainment company in the world.
F1’s popularity is borne out in Formula One’s earnings numbers. Its revenue jumped 14% in the first half of 2025 from the same period last year, to $1.63 billion. Operating income soared 20% to $265 million.
U.S. TV contract
In the U.S., F1 races have appeared on ESPN since 2018. Live viewership has more than doubled since then, to 1.1 million in 2024, according to Nielsen. ESPN is paying about $90 million to F1 this year in a deal that expires at the end of the season.
F1 has sought $150 million to $180 million per year for its next contract, sources told The Wall Street Journal. But broadcasters have balked at that amount, feeling tapped out after committing huge rights fees to other sports, such as NBA basketball. Apple is currently leading the race for F1 broadcasting rights, with a bid of $120-150 million per year, The New York Times reports.
F1 stock is traded in tracking shares, issued by Liberty Media and representing just the F1 part of its holdings. The stock has returned 8.5% year to date, trailing the S&P 500’s return of 13.4%. But F1 has beaten the S&P 500 over the last year – 29.5% to 18.8%.
No one knows how long F1 will sustain its popularity. But for now, it’s off to the races.
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