HOW THEY MAKE MONEY // SEASON 1, EPISODE 51 INTELLIGENCE REPORT
Formula 1 5/14 ACTIVE GATES

What does Formula 1 Really Sell?

On the outside, it is easy to assume that Formula 1 makes money by putting on a spectacular racing event — fast cars, famous drivers, and sold-out grandstands. That is what is SEEN.

THE SEEN ENGINE
$3.65B

Total Race Weekend Spectacle Revenue

The cumulative revenue from race-weekend ticket sales, broadcast viewership numbers, and the global spectacle of 24 races across 5 continents.

Source: Liberty Media Formula One Group FY 2024 Annual Report
THE UNSEEN ENGINE
$1.07B

Race Sanctioning & Circuit Hosting Fees

The non-negotiable sanctioning fees paid by local governments, sovereign wealth funds, and circuit promoters for the exclusive right to place their country on the Formula 1 calendar.

Source: Liberty Media Formula One Group FY 2024 Annual Report

The real wealth is in what is NOT SEEN — how Formula 1 owns the commercial rights to its own sport, and charges governments and circuit promoters between $20 million and $60 million per year simply for the right to host a race. The cars are the content. The sport is the asset. The sanctioning fee is the gate.

But which money gates does Formula 1 use to stack this cashflow? Click each ? to reveal how they use that gate.

AGENT // PROFIT OPENER THE SEEN (PHYSICAL/DIGITAL) THE UNSEEN (PHYSICAL/DIGITAL)
1. Products — —
2. Services
ACTIVE · SEEN Circuit Sanctioning & Race Hosting Rights Granting circuit promoters the right to host a Grand Prix weekend in exchange for a non-negotiable, contractually escalating annual sanctioning fee. Source: Liberty Media Formula One Group Investor Relations
—
3. Access —
4. Attention —
5. Money — —
6. Risk — —
7. Brand —
STEP 03

Strategic Translation

The underlying economic infrastructure driving this profit extraction design.

01

What is the explicit promise the customer buys?

High-speed racing cars, famous drivers, glamorous circuits, and sold-out grandstands across 24 countries.

02

What asset is quietly accumulating as a result?

The exclusive commercial rights to the Formula 1 World Championship — the most-watched annual motorsport series on the planet, with 1.5 billion cumulative TV viewers per season.

STEP 04

Author's Note

PO
Pelumi Ogunmokun FOUNDER // KAMPAIGN LABS

The Personal Take: You do not need to own the cars, the teams, or the drivers to profit from a sport. You only need to own the commercial rights to the event itself. Formula 1 is not a racing business — it is a media rights and sanctioning fee business that uses racing as the content delivery mechanism.

SME Operational Conditions: Apply this when you have built a high-demand platform, audience, or event that other parties desperately want access to. The moment demand outstrips supply, you control the gate — and whoever wants in must pay your toll.

Local Brand Example: A popular local food festival organizer stops thinking of themselves as an 'event organizer' and starts thinking like Formula 1. They charge vendors a booth sanctioning fee ($500–$5,000) just for the right to operate at the event — before a single customer walks through the gate. They also sell annual media partnerships to local restaurants, a VIP experience access tier, and live stream the event for a digital ticket fee.

Read Next: The 7 Money Gates →
📖 VIEW THE 14 PROFIT OPENERS FRAMEWORK GUIDE ▼
THE FRAMEWORK // FOR REFERENCE

The 14 Profit Openers Explained

Every business extracts revenue through some combination of these 14 channels — 7 openers, each available in a Physical and a Digital medium. Use this as your reading guide.

PROFIT OPENER PHYSICAL CHANNEL DIGITAL CHANNEL
01 Products Physical Product Sales Tangible goods manufactured, packaged, and sold via retail or direct channels. The classic storefront transaction. Digital Product Sales Downloadable assets, software, templates, or digital files sold as a one-time purchase with zero delivery cost.
02 Services Physical Service Delivery In-person labor, consultations, repairs, or expertise delivered at a physical location or on-site. Digital Service Delivery Remote consulting, virtual coaching, online fulfillment, or any service rendered and delivered through digital channels.
03 Access Physical Access Gate Memberships, entry passes, physical loyalty tiers, or location-based access privileges privileges sold on a recurring basis. Digital Access Gate Subscription plans, SaaS tiers, paywalls, or recurring digital membership fees that gate content or functionality.
04 Attention Physical Attention Capture Billboard placements, event sponsorships, in-store brand shelving, or any physical advertising inventory sold to third parties. Digital Attention Capture Ad revenue, sponsored placements, affiliate arbitrage, or monetizing an owned audience's attention through digital channels.
05 Money Physical Money Mechanics Upfront payment collection, deposit structures, or float optimization — holding cash from physical transactions before fulfillment. Digital Money Mechanics Payment processing spreads, digital float, BNPL integrations, or fintech revenue extracted from digital transaction flow.
06 Risk Physical Risk Coverage Extended warranties, in-store protection plans, insurance products, or physical asset guarantees sold alongside the core product. Digital Risk Coverage Digital warranties, SLA upsells, cybersecurity add-ons, or data backup subscriptions that monetize a customer's fear of loss.
07 Brand Physical Brand Licensing Trademark royalties, franchise licensing fees, co-branding deals, or physical branded merchandise sold to third parties. Digital Brand Licensing IP licensing, white-label software deals, digital co-branding arrangements, or platform platform placement fees paid for brand association.