How Formula 1 Teams Make Money

00:13:46
https://www.youtube.com/watch?v=fobN_XSOQ5s

概要

TLDRThe content explores the intense world of Formula 1 racing, emphasizing the financial transformations and operational dynamics of the sport. It highlights the growing enterprise value of F1, which has doubled since Liberty Media's acquisition. Team leaders like Toto Wolff of Mercedes discuss the blend of technical prowess and business acumen needed to succeed. Sponsors play a crucial role in maintaining team finances, while the introduction of cost caps aims to level the playing field. The discussion also sparks interest in future seasons and team competitiveness.

収穫

  • 🏎️ Formula 1 is the world's most elite racing league.
  • 💰 F1's total enterprise value has doubled to around $16 billion.
  • 📈 Teams are increasingly valuing sponsorships for financial stability.
  • 🤝 Long-term sponsor relationships are key for performance funding.
  • 📉 Cost caps introduced ensure a fairer competition landscape.
  • 🏁 F1 teams constantly innovate car designs throughout the season.
  • 📊 The Mercedes team operated on a budget exceeding $400 million in 2022.
  • 🌍 F1 has a growing fanbase, particularly in the U.S. market.
  • 🔧 Leaders in teams like McLaren focus on resource optimization for success.
  • ⚙️ R&D remains the largest investment for teams, crucial for staying competitive.

タイムライン

  • 00:00:00 - 00:05:00

    I sports le mokhothu, ha ho na motho ea ka u fa maikutlo a ho ba le arena moo gladiators ba leng teng. Ho nka racing ke ho lekana le ho nahana ka mea e etsahalang, empa haeba u batla ho fetola ntho, e se e ntse e lieha. Formula 1 ke mokhothu o phahameng ka ho fetisisa lefatšeng, 'me boleng ba ona bo hlotse ho tloha ha Liberty Media e nka F1 ho $8 billion ka 2017 ho fihlela $16 billion hona joale, 'me lihlopha tse 10 li bokellehile ho feta $15 billion. Ho na le phetoho e kholo le efesekeng e amanang le tsela ea lipapali e potlakileng ka ho fetisisa. Ho na le Andy Wolff, o lefa ho ba moholo ka ho fetisisa. Bala ka F1 le litlhoko tse amanang le ho sebetsana le sehlopha sa F1.

  • 00:05:00 - 00:13:46

    Toto Wolff o na le mesebetsi e meraro, e leng CEO, mohokahanyi le morekisi ea se nang lekhetho ho Mercedes. A tseba hore ho kgetha metsoalle le ho fana ka lisebelisoa ho ea ho tsona ho bohlokoa. Formula 1 e hlahisa $600 million khoeling ho tloha ka 5 ho isa ho 10% bakeng sa koetliso. Ho fa liqeto tse joalo, basebetsi ba litšebeletso li entseng ba eketsa tefo ea tsona hammoho le boemo ba ho hlahloba. Bokhoni ba ho fumana ho eketsehileng ha bo maloetse hantle, empa bo ne bo bonahala. F1 e na le motsoako o moholo, a na le mekhoa e tšoanang le top 5 e le lisebelisoa.

マインドマップ

ビデオQ&A

  • What is the current value of Formula 1?

    The enterprise value of Formula 1 is around $16 billion.

  • How much does it cost to develop a Formula 1 car?

    It costs about $50 million to develop a Formula 1 car.

  • How much do F1 teams spend on operation costs?

    The Mercedes F1 team had operational costs exceeding $400 million in 2022.

  • What is the role of a CEO in an F1 team?

    The CEO ensures top personnel resources are provided and manages partnerships and sponsorships.

  • How do sponsors benefit from being associated with F1 teams?

    Sponsors gain exposure and often form long-term relationships that strengthen their brand visibility.

  • What impact do cost caps have on Formula 1?

    Cost caps aim to create a fair competition environment and ensure teams stay profitable.

  • What is the revenue generation for an F1 team?

    An F1 team's revenue typically hovers around $600 million and grows annually by 10-15%.

  • What significant changes have occurred in F1 recently?

    F1 has seen a rise in team values and financial stability after implementing cost caps.

  • How do F1 teams prepare for upcoming seasons?

    Teams constantly innovate car designs and strategies based on past performances.

  • What is the significance of sponsorships in F1?

    Sponsorships are critical for funding, performance enhancements, and brand alignment.

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オートスクロール:
  • 00:00:06
    There's no other sport in the world that can give
  • 00:00:10
    you the feeling of being in the arena where the
  • 00:00:14
    gladiators are, when really the action is going
  • 00:00:17
    on.
  • 00:00:17
    You're trying to imagine scenarios, how the start
  • 00:00:21
    could turn out and you know the what-ifs.
  • 00:00:28
    Going racing. It's intense. You can see if
  • 00:00:30
    you've done things right. If you want to change
  • 00:00:32
    anything, it's too late on the grid.
  • 00:00:34
    We're in the prototype business. We're standing
  • 00:00:36
    still. You're going backwards because
  • 00:00:38
    everyone's going forward.
  • 00:00:42
    And the team, we are half glass empty people rather
  • 00:00:45
    than half full. Maybe our lives are a little bit
  • 00:00:48
    more miserable than others, but it keeps us on
  • 00:00:49
    our toes.
  • 00:00:54
    Formula 1 is the most elite racing league on the
  • 00:00:56
    planet, and it's doubled in value since U.S.-based
  • 00:00:59
    Liberty Media bought F1 for some $8 billion in
  • 00:01:03
    2017. What's it worth now?
  • 00:01:06
    The enterprise value is about, floating around,
  • 00:01:08
    say $16 billion. And together, the ten teams on
  • 00:01:11
    the grid are reportedly valued at more than $15
  • 00:01:14
    billion.
  • 00:01:15
    Today. I don't think you could buy a team for less
  • 00:01:17
    than $750 million, and the top teams are valued
  • 00:01:21
    at $3 billion.
  • 00:01:22
    That's a total change.
  • 00:01:23
    It's a rapid rise for one of the world's fastest
  • 00:01:26
    sports.
  • 00:01:32
    It's Toto Wolff, everyone.
  • 00:01:38
    So let's get started.
  • 00:01:39
    My name is Anita Elberse, but this is really not
  • 00:01:41
    about me. This is about this man, the most
  • 00:01:44
    successful team principal of our era.
  • 00:01:47
    We have ten teams, and those ten teams have been
  • 00:01:50
    there through thick and thin.
  • 00:01:53
    We were shaken by Covid and we made it.
  • 00:01:57
    Formula 1 teams are run by CEOs and team principals.
  • 00:02:01
    Welcome to the Miami Grand Prix.
  • 00:02:03
    In some cases, they're both.
  • 00:02:04
    Toto Wolff of the Mercedes F1 team has his
  • 00:02:07
    hands full with three roles.
  • 00:02:09
    You're unique because you are CEO, principal and
  • 00:02:14
    part owner of Mercedes.
  • 00:02:16
    Which one takes the most time?
  • 00:02:18
    While the engineers will always say that I'm
  • 00:02:19
    spending too much on the CEO side, and I need to
  • 00:02:25
    remind myself that in our business, it's the
  • 00:02:28
    stopwatch. If we win, financial success is going
  • 00:02:31
    to follow. My priority must always be to create a
  • 00:02:35
    framework where our performance people are
  • 00:02:38
    able to thrive.
  • 00:02:39
    23 race weekends of the year, I'm the team
  • 00:02:42
    principal of a high-performing sports
  • 00:02:43
    team, and for the other 52 weeks of the year, from
  • 00:02:47
    Monday to Friday, I'm the CEO of a high-tech
  • 00:02:50
    technology business, so it keeps me keeps me busy.
  • 00:02:53
    You need to know what you're doing technically
  • 00:02:54
    because you've got a big design team.
  • 00:02:56
    The technology in F1 is at the forefront.
  • 00:02:59
    You know, you always develop something and you
  • 00:03:01
    need to run a business. You need to have that
  • 00:03:03
    money coming in. So you need to sell sponsorship
  • 00:03:06
    or report back to the board, to the investor in
  • 00:03:09
    the team and tell them what you're doing with
  • 00:03:11
    money.
  • 00:03:11
    What does the CEO of McLaren Racing Team do?
  • 00:03:14
    That's what a lot of people on the racing team
  • 00:03:16
    actually ask.
  • 00:03:17
    My job is to get the best people to give them the
  • 00:03:21
    resources they need, the direction they need.
  • 00:03:24
    On the commercial side, bringing on new corporate
  • 00:03:28
    partners and most importantly, servicing and
  • 00:03:31
    making sure our corporate partners are benefiting
  • 00:03:33
    from their affiliation with McLaren.
  • 00:03:36
    And then, of course, I've got a board and
  • 00:03:38
    shareholders. I'm pretty much seven days a week.
  • 00:03:41
    CNBC is a corporate sponsor of McLaren racing,
  • 00:03:44
    one of the top five teams in Formula 1.
  • 00:03:46
    To get to the top of the league –
  • 00:03:48
    We've now won 27 of the last 31 races
  • 00:03:51
    — you have to start early.
  • 00:03:53
    When did you start getting into racing and
  • 00:03:55
    F1? You're the longest serving team principal,
  • 00:03:58
    right?
  • 00:03:58
    Yes, I have that title now, apparently.
  • 00:04:01
    I started at the age of 11 racing go karts, and
  • 00:04:04
    then I did some testing as a test driver in
  • 00:04:07
    Formula 1. But then I retired from driving in
  • 00:04:10
    1998, and then Red Bull approached me when they
  • 00:04:13
    acquired what was the Jaguar Formula 1 team to
  • 00:04:16
    come and be the first team principal of Red Bull
  • 00:04:18
    Racing.
  • 00:04:19
    Racing wasn't part of any of my upbringing.
  • 00:04:22
    When I was 18, I got invited to a junior
  • 00:04:25
    Formula race, Formula 3 in Europe, and this is
  • 00:04:27
    really where I found my identity.
  • 00:04:30
    You started as a mechanic, right?
  • 00:04:31
    Correct.
  • 00:04:32
    I started as a mechanic in '86, in rallying, in world
  • 00:04:34
    rallying.
  • 00:04:35
    And how does going from mechanic to now being a
  • 00:04:39
    team principal inform you?
  • 00:04:40
    Do you think it gives you an edge?
  • 00:04:42
    I don't know if it gives me an edge, but for sure
  • 00:04:45
    it gives me an advantage.
  • 00:04:47
    I mean, it's very difficult to pull the wool
  • 00:04:50
    over my eyes.
  • 00:04:52
    F1 cars are made from scratch.
  • 00:04:54
    It's part of the reason that operating costs for
  • 00:04:56
    the teams are sky high.
  • 00:04:58
    For the Mercedes team, that figure was more than
  • 00:05:00
    $400 million in 2022, which includes everything
  • 00:05:04
    from marketing to mechanics to driver
  • 00:05:06
    salaries.
  • 00:05:08
    And this is all you can.
  • 00:05:10
    That's massive. That's massive carbon.
  • 00:05:14
    It's an aerodynamic miracle in that car.
  • 00:05:18
    We're trying to have the airflow flowing underneath
  • 00:05:23
    the front wing and above it, and that airflow then
  • 00:05:27
    spreads around the car and hopefully provides
  • 00:05:29
    downforce.
  • 00:05:30
    Can you put a price on the cars? They cost about $50
  • 00:05:33
    million to develop, and they're a couple of
  • 00:05:35
    million dollars to actually build one.
  • 00:05:38
    These cars here probably $2.5 million each car.
  • 00:05:43
    To make? To make. It lasts for one season?
  • 00:05:45
    It lasts for one season.
  • 00:05:47
    And then what? And then they go in a museum.
  • 00:05:50
    R&D is the biggest single investment.
  • 00:05:54
    If you took the car that starts the year and it was
  • 00:05:57
    on pole and you didn't touch it, by the end of
  • 00:06:00
    the year, it would be last. We have new stuff on
  • 00:06:02
    our car this weekend.
  • 00:06:03
    We'll have new stuff on our car next weekend.
  • 00:06:05
    So it's a prototype race.
  • 00:06:08
    You're never sitting still.
  • 00:06:12
    And to pay for all that, teams have to bring in the
  • 00:06:15
    bucks, mostly from sponsor contracts and F1
  • 00:06:18
    itself. What about the prize money?
  • 00:06:21
    How does that work, now that you're at the top?
  • 00:06:23
    Well, the prize money is essentially split into
  • 00:06:25
    three columns. So you get one column for
  • 00:06:27
    participation. You get one column for where you
  • 00:06:30
    finish in the constructors championship.
  • 00:06:32
    Then there is a third column that is all has a
  • 00:06:35
    historical content to it.
  • 00:06:37
    So for example, Ferrari, benefit the most from that
  • 00:06:40
    column because they're the longest standing team.
  • 00:06:44
    Our business today generates about $600
  • 00:06:46
    million in revenue, and we are growing with 10% to
  • 00:06:51
    15% annually.
  • 00:06:52
    We have predictable income streams because
  • 00:06:55
    sponsorship contracts normally between 5 to 10
  • 00:06:57
    years.
  • 00:06:57
    You've got MoneyGram as the title sponsor.
  • 00:07:00
    How did that come together?
  • 00:07:01
    I think MoneyGram coming to us was very smart.
  • 00:07:04
    I mean, it's an American company which wants to get
  • 00:07:07
    more business globally in the big teams.
  • 00:07:10
    You know, it's all about the big team.
  • 00:07:12
    And with us I think they get more about them.
  • 00:07:15
    We are still the youngest team.
  • 00:07:17
    Why did you think this was a good idea?
  • 00:07:19
    We were known as a traditional 80-year-old
  • 00:07:21
    brand that is a retail cash business.
  • 00:07:24
    One thing we looked at from a marketing
  • 00:07:25
    perspective was how do we amplify the
  • 00:07:28
    characteristics and the brand attributes that we
  • 00:07:31
    were becoming more and more, which is around
  • 00:07:33
    innovation and technology, safety, speed,
  • 00:07:36
    etcetera. And then what really pops out about F1
  • 00:07:38
    initially is that they race in, at the time, in
  • 00:07:41
    20 different countries, and we looked at those
  • 00:07:43
    countries in that particular year, it
  • 00:07:45
    overlapped with 70% of our send revenue.
  • 00:07:48
    So while we're a U.S. company and it's our
  • 00:07:50
    largest market, we do more business outside the
  • 00:07:52
    U.S. than we do inside.
  • 00:07:54
    Are the Formula 1 fans MoneyGram customers?
  • 00:07:59
    Yeah, we typically interact with consumers
  • 00:08:00
    that are 25 to 35 years old.
  • 00:08:02
    They're oftentimes migrant communities that
  • 00:08:05
    have left their home countries and they're gone
  • 00:08:08
    to find employment sending money back home.
  • 00:08:10
    And so the connection with a racetrack, the
  • 00:08:13
    connection with the driver, the connection
  • 00:08:15
    with the sport itself really binds them and
  • 00:08:17
    connects them in many ways.
  • 00:08:19
    It's a global sport. MoneyGram is, you know,
  • 00:08:21
    connecting people financially all over the
  • 00:08:23
    world. And I think all these synergies, synergies
  • 00:08:26
    are there.
  • 00:08:27
    One third of what we do is, you know, PR-sponsored
  • 00:08:29
    stuff, marketing media.
  • 00:08:31
    It's a big, large part of it.
  • 00:08:34
    It's what keeps us racing.
  • 00:08:36
    You know, it's a small privately owned team and
  • 00:08:39
    all these partners that we have on board, you
  • 00:08:41
    know, they're the ones that, you know, make this
  • 00:08:44
    possible.
  • 00:08:44
    How do you determine the placement of the sponsor?
  • 00:08:47
    So we measure precisely how much exposure a
  • 00:08:51
    sponsor gets by being on the car.
  • 00:08:53
    So depending on the size of the sponsorship deal
  • 00:08:57
    you're getting more spaces.
  • 00:08:59
    But to be honest, the sticker on the car is just
  • 00:09:03
    the icing on the cake.
  • 00:09:04
    It's more the relationship that you
  • 00:09:05
    have. How can we help them to increase their
  • 00:09:08
    sales or help them with their marketing targets?
  • 00:09:12
    What we're doing is tailor made for the
  • 00:09:14
    specific partner.
  • 00:09:16
    Does the success of F1 and the team have any bearing
  • 00:09:20
    on Mercedes sales?
  • 00:09:22
    For the consumer?
  • 00:09:23
    I think it's a long-term branding exercise where
  • 00:09:27
    people say, okay, what is what is it that I think
  • 00:09:29
    about Mercedes? We are being given the
  • 00:09:31
    responsibility of carrying the star, the
  • 00:09:33
    automobile. You know, it's not like a
  • 00:09:35
    sponsorship platform, like we're doing tennis or
  • 00:09:38
    golf. We are building race cars and we're
  • 00:09:40
    building road cars.
  • 00:09:41
    The first ever Mercedes was a racing car.
  • 00:09:46
    Why does Red Bull, an energy drink maker, need a
  • 00:09:49
    Formula 1 team?
  • 00:09:50
    The shareholders have always been passionate
  • 00:09:52
    about racing and Formula 1, and they saw it as the
  • 00:09:54
    perfect platform to market their brand.
  • 00:09:57
    And it's the most viewed sport in the world outside
  • 00:10:01
    of the Olympic Games and the football World Cup.
  • 00:10:05
    But of course, they only happen every four years.
  • 00:10:07
    Formula 1 is every two weeks.
  • 00:10:09
    Is it a profitable investment for them?
  • 00:10:13
    It depends how you view it in terms of the
  • 00:10:15
    recognition for the brand globally, what that would
  • 00:10:18
    cost to advertise. Absolutely. It's a huge
  • 00:10:20
    success in the amount that it's promoting the
  • 00:10:23
    Red Bull brand. And I think as the sponsorship
  • 00:10:26
    and partnerships and the income improves and cost
  • 00:10:29
    caps take effect, we're seeing the intrinsic value
  • 00:10:33
    of Formula 1 teams just increase dramatically.
  • 00:10:37
    The cost cap that Liberty Media introduced limits
  • 00:10:40
    how much each team can spend on building and
  • 00:10:42
    developing cars.
  • 00:10:44
    Set at $135 million in 2023.
  • 00:10:48
    Is the budget cap a good thing?
  • 00:10:50
    Absolutely. Anybody investing in it knows how
  • 00:10:53
    much you're going to spend before somebody's
  • 00:10:54
    investing in a race team didn't know if he would
  • 00:10:57
    spend $200 million a year, or half a billion a
  • 00:10:59
    year. There was everything in between.
  • 00:11:01
    We're now profitable.
  • 00:11:03
    We were losing seven, eight, nine figures when I
  • 00:11:06
    got started. And now we're a profitable sports
  • 00:11:09
    team.
  • 00:11:10
    The blueprint was the American leagues, where
  • 00:11:12
    when the salary caps were introduced, the businesses
  • 00:11:15
    became sustainable. That was introduced two years
  • 00:11:17
    ago, with also the aim not only to make the
  • 00:11:21
    business sustainable, but also to create a more
  • 00:11:23
    leveled playing field.
  • 00:11:24
    Small teams basically having the same budget
  • 00:11:26
    like the big ones.
  • 00:11:27
    Long term, there will be many more teams capable of
  • 00:11:30
    winning races, but also it made our business very
  • 00:11:33
    profitable.
  • 00:11:33
    So how do you spend it most wisely and how do you
  • 00:11:37
    boost the performance?
  • 00:11:38
    That's that's the name of the game.
  • 00:11:40
    Before, if we wanted to develop a new front wing,
  • 00:11:42
    you could develop ten and pick the best one.
  • 00:11:44
    And you didn't mind that you kind of wasted money
  • 00:11:46
    on nine front wings.
  • 00:11:48
    Now you don't want to develop ten to land on
  • 00:11:50
    one, because that nine wings that you've wasted
  • 00:11:53
    money on, that's money that you should be
  • 00:11:55
    spending somewhere else.
  • 00:11:56
    Becoming profitable, I hope we achieve it this
  • 00:11:59
    year or next year. You know that will be one –
  • 00:12:01
    It's not profitable now?
  • 00:12:02
    Not in the moment.
  • 00:12:03
    In the moment, I think we are close to a break even.
  • 00:12:06
    But we will become profitable because every
  • 00:12:10
    business to assure that you continue, you need to
  • 00:12:14
    be profitable because it cannot be just an
  • 00:12:16
    investment project.
  • 00:12:20
    And with profitability comes a surge in team
  • 00:12:23
    values. Recently, a group of celebrity investors
  • 00:12:26
    took a 24% stake in alpine racing, putting
  • 00:12:30
    that team's value north of $900 million.
  • 00:12:33
    We've got a lot more newer, younger audience
  • 00:12:37
    now, which I think people are really excited about
  • 00:12:40
    the sport and where it's going. I used to come out
  • 00:12:41
    to the States particularly, and I would
  • 00:12:43
    explain what it is I do, and I never could
  • 00:12:45
    understand why people didn't love the sport like
  • 00:12:47
    I've grown up to love it.
  • 00:12:48
    And now I'm seeing people having that experience
  • 00:12:52
    that I've had.
  • 00:12:52
    As this season winds down, it's all eyes on next
  • 00:12:56
    spring.
  • 00:12:56
    How should we look to 2020 for the next season?
  • 00:12:59
    Do you have a good sense that you're going to be
  • 00:13:01
    back in the hunt for the title again?
  • 00:13:03
    We have completely changed the concept of our car.
  • 00:13:06
    It seems like all our tough learnings of getting
  • 00:13:09
    it wrong so many times now makes sense.
  • 00:13:13
    So I think the car is going to be in a good
  • 00:13:14
    place. Is it good enough to beat the Red Bull?
  • 00:13:16
    Is it good enough to beat Max Verstappen?
  • 00:13:18
    I don't know, but the aim is definitely to be right
  • 00:13:22
    up there.
  • 00:13:23
    That rivalry between you and Mercedes, you and
  • 00:13:26
    Toto. Where does that stand right now?
  • 00:13:28
    Well, they'll be quiet at the moment, but they'll be
  • 00:13:32
    back. It's a bit like The Terminator.
タグ
  • Formula 1
  • Toto Wolff
  • F1 Teams
  • Sponsorship
  • Revenue
  • Cost Caps
  • Technology
  • Team Dynamics
  • Racing
  • Business