Singapore’s F1 Grand Prix in 2022. 2022.
Bryn Lennon – Formula 1 | Formula 1 | Getty Images
Take an elite field of world-class racing experts. Ask them to spend fewer dollars toward beating their bitter rivals. The result, it turns out, is a slate of newly investable assets.
That’s how the heads of Formula 1 racing see it, crediting a league-wide budget cap with making the team businesses more sustainable and boosting valuations.
“When we got involved, literally, the bottom teams were being traded for zero. Today I don’t think you could buy a team for less than $750 million, and the top teams are valued [around] $3 billion,” Liberty Media CEO Greg Maffei told CNBC’s Sara Eisen in the documentary “The Inside Track: The Business of Formula 1.”
The budget cap — set at $135 million per team in 2023 — limits how much teams can spend on developing and building their race cars. Before it was introduced in 2021, the top teams in the league could spend multiples of that in a given…
2023-11-17 17:02:26
Source from cnbc.com/2023/11/16/f1-spending-cap-made-racing-teams-more-investable.html” target=”_blank” style=”color:blue” rel=”noopener”>www.cnbc.com
