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