5 ways Formula 1 makes money

Formula 1 is one of the best and the most thrilling sports out there. It is also known as the most expensive sport. Each year teams spend millions to make a new car that must be successful. Today with online sportsbooks similar to the ones in the following list, which help UK players to find sports websites where they can place bets, we are going to discuss some interesting topics about F1. There are countless rules as well, which make these cars special and extremely hard to develop. Add the facts drivers are extremely well-paid and you can deduce that each team must make a massive profit. How do they do this? Here are 5 ways. 

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TV Franchise

One of the best-known ways Formula 1 makes money is via TV channels. Basically, this is a popular sport and it is present all over the world across many different channels. If you like, each of these channels or TV networks must pay massive fees to broadcast the races, and all the rest are linked to Formula 1.

Now, if you imagine how many channels there are and that each will pay an impressive fee, you can deduce that this sport will get a massive part of the income in this way. There are a lot of additional, linked ways how they make money. These can include ads, partnerships and so much more. We will take a look at the additional ways below. 

Investments

Investments are common in Formula 1. For example, Mercedes will want the team to perform better. As such, they will give millions of dollars to the team for development, hiring better drivers, and research. A team will use that money in order to become more successful. This happens every year, and many teams get the moment this way. Well, they get a part of the money for this. For instance, research may cost $250 million per season. A team will get via investments from one brand $20-80 million.

Keep in mind that not only companies can invest in teams. Shareholders can do the same thing. Today investments in sports, iGaming and other types of entertainment are common. The goal is to collect more money and develop a better car that will be more successful. The next year the same team will get even more money simply because it is successful.

We mentioned the Mercedes brand. They invested $80 million in the team in F1. Aston Martin team got $25 million. In general, each team will get a different amount; an amount investors can afford and believe is suitable. 

Driver-Linked Income

This is an interesting…