F1 owners report significant loss but refute sale rumors

Liberty Media, owners of Formula 1, have talked up the future earning potential of the sport as rumors of a sale continue.

The company reported losses of $27m during their latest earnings call, a significant fall from the $136m profit it recorded in the same period last year.

Reasons for this include a race more featuring in the first three months of last year coupled with increased staffing and marketing costs bringing the head count to a higher level.

Liberty, who acquired F1 from Bernie Ecclestone in January 2017, have been aggressive in their expansion of the calendar, taking this seasons total to 24 races, and were keen to reference their long-term relationships for guaranteed future revenue.

The Miami Grand Prix will be on the calendar until 2041 in a bumper deal, while Mexico also recently renewed until 2028. This could represent more of a shift away from Europe for the sport, with the Netherlands Grand Prix due to drop in 2026, while Thailand and the ill-fated Vietnam race, which was due to be run in 2020 prior to the COVID-19 outbreak, have been mooted for potential addition.

Liberty Media CEO Derek Chang said of the earnings report: "Historically, Formula 1's business model has proven resilient in times of economic uncertainty.

“We are encouraged by the strength of the business and look forward to completing the rest of an exciting season.

“I’ve had the opportunity to spend some time with [F1 president and CEO] Stefano [Domenicali] over the last couple of races, and in speaking to both current sponsors, as well as potential sponsors, I don’t think I’ve been in a situation where I’ve seen this sort of energy and excitement around the possibilities to engage with the sport as with F1.”

Liberty Media selling F1?

Perhaps of more worry for F1 bosses will be the decline in audience for the Miami Grand Prix, which saw a 32% year-on-year drop for the weekend, won by a dominant Oscar Piastri.

F1 is still attempting to secure a long-term broadcasting destination in the US after ESPN's period of exclusivity came to an end, and despite being asked by investors on the call about the possibility of a sale, chose to reiterate their desire to remain actively part of the sports growth.

Liberty have in the past been linked with potential suitors, particularly the Saudi Public Investment Fund (PIF). The PIF own a 4% stake in energy giant Aramco, who in turn are active investors in F1 to the tune of a $65m (£50m) sponsorship agreement as well as their constructor relationship with Aston Martin.

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