How Liberty Media turned Formula One into a more enticing investment opportunity

The mass media group has drawn fresh interest in motorsport’s premier championship from the likes of LVMH, Adidas and Cadillac

Reading Time:3 minutes

With growing popularity and a more stable financial structure, Formula One presents compelling investment prospects, from backing drivers to sponsoring teams in the global series. Photo: EPA-EFE

Published: 7:00pm, 17 Mar 2025

Since US mass media conglomerate Liberty Media Corporation bought the Formula One Group in 2016, investment opportunities in its title asset – Formula One (F1) and its popular motorsport world championship – have never been stronger, whether the interest is in buying a team, developing new driving talent or securing the rights to host races.

According to Dan Wells, CEO of motorsport investment advisers Dan Wells & Investors, F1’s evolving business model has opened new doors for institutional investors and sovereign wealth funds looking to get a piece of the motorsport industry that was worth US$7.9 billion in 2024, according to Business Research Insights.

“It was always a very costly exercise to run an F1 team, but the business model has improved in the last few years with Liberty’s takeover,” said Wells. “If you owned a team before Liberty’s acquisition of F1, you would now have an asset worth well in advance of what it would have been [without the acquisition].”

The investment options are diverse. “People can invest in a driver’s career so that they get a return on future earnings. There’s also investing in circuits on the F1 calendar,” noted Wells. “There are different ways people can be involved from an investment perspective.”

For a country, the economic benefits of hosting F1 races can be enormous. “Look at what Singapore did with the Singapore Grand Prix [since 2008] – the amount of business the country attracts is huge,” explained Wells.

While traditional constructors Ferrari and Mercedes still dominate F1 to an extent, the field is seeing some expansion. General Motors’ Cadillac have announced plans to enter a team in 2026, when Audi will also join, taking over the current Sauber team.