Why F1’s push in the US only looks good on the balance sheet

Formula 1 is a global sport with races on five different continents. The pinnacle of motorsport has a fan following of millions across the world. However, there has been one market which has historically been difficult for F1 to conquer, the United States of America. Subsequently, the sport has been trying to infiltrate the US market in recent years.

Ever since American giant Liberty Media took over F1’s commercial rights from Bernie Ecclestone in 2016, F1 has prioritized the US. The sport partnered with Netflix for a special F1 docuseries, ‘Drive to Survive‘ to provide an engaging behind-the-scenes look into the paddock. Moreover, the sport has even expanded with more races in the ‘Land of the Free.’

Now, a few years since Liberty Media tried to tap into the American market, the results vary. Formula 1 has succeeded in certain aspects which has benefited the teams and stakeholders considerably. However, it seems that there might be a lot left to be done before F1 becomes a key sport for the average American.

F1’s US viewership numbers four times less than NASCAR

Formula 1 aims to to exploit the lucrative American market. The sport now has three American races on the calendar, all catered to attract the local crowds. Moreover, F1 and Liberty Media have invested millions in the Las Vegas GP as self promoters to get a big chunk of revenue from the race in Sin City.

However, the sport continues to trail behind American racing series in terms of viewership in the US. In 2023, ESPN reported an average F1 viewership of 1.1 million per race. Additionally, the viewership of the season-opener Bahrain GP saw a significant drop compared to 2023.

On the other hand, NASCAR, the biggest racing series in the US saw over 4 million fans tune in to watch the first race of the season, a 19% increase compared to 2023. Although, it must be noted that F1 has a lot of work to do to potentially match the stock car racing series in the Land of the Free. As Formula 1 has had a mixed image in the United States courtesy of the infamous 2005 Indianapolis GP.

F1 has indeed seen a rise in American TV viewership in recent years, however this number is nowhere close to the results expected from its efforts in the US. Additionally, this figure dwarfs in comparison to the sport’s average global viewership of 70 million.

American sponsors in F1 doubled since Liberty Media takeover

Irrespective of the growth in viewership, F1 teams have seen an influx of US-based sponsors. Williams Racing’s Commercial Director James Bower stated that the number of American sponsors on the grid has doubled in the past decade. In 2015, there were 45 US-based companies on the grid. This figure has skyrocketed to 108 in 2024.

The biggest American sponsors on the grid include the likes of Red Bull’s title sponsor Oracle and even the tech behemoth Google via its Chrome partnership with McLaren. Interestingly, Red Bull’s sister team was rebranded for 2024 after signing lucrative deals with American giants Visa and Cash App. The Faenza-based team was renamed as VisaCashAppRB for this season. Further signifying the immense interest of American brands in the pinnacle of motorsport.

It must be noted that Williams Racing itself is now owned by an American venture capital firm, Dorilton. The firm acquired the historic British outfit in 2020. This in turn further highlights the new-found interest of US companies in Formula 1 ever since Liberty Media took over the sport.

Locals unhappy with inaugural Las Vegas GP

The Las Vegas GP was one of the biggest projects undertaken by Formula 1 in recent years. The sport invested half a billion dollars in the Sin City race. Moreover, F1 and Liberty Media had promised that the race could bring in more benefits to the Vegas than NFL’s Super Bowl. However, the local fans and business owners were far from happy after the race.

The contractors of the Las Vegas GP recently mentioned that F1 had not signed a multi-year-deal for the race. This has brought uncertainty to the future of the Nevadan race. Moreover, local business owners slammed Formula 1, claiming that the sport hindered their businesses in the build up to the race. So much so, that the Super Bowl led to far better economic impact on the city due to the lack of obstructions.

Moreover, even F1 drivers such as Max Verstappen had expressed their displeasure over the spectacle of the race. Formula 1 held an opening ceremony for the Vegas weekend with music performances to excite fans. However, this event did not impress the majority of viewers.

F1’s US efforts yet to bring value for long-time fans

Formula 1 has monetarily succeeded with its efforts in the United States. The value of F1 teams have increased in recent years, with Ferrari being valued at over $3 billion by Forbes. Six out of the ten teams have a valuation of over a billion dollars. Certainly, this has allowed teams to finally be on the trajectory to be profitable with US playing a major role in this turn-around.

However, looking at the bigger picture, one could argue that the sport has focused too much on a single market for just a million viewers per race. As compared to the much larger international audience which is witnessing F1 became more and more American.

Although, there is no doubt that fans would want the best for teams to prevent from any team being forced to shut down due to financial issues. This used to be the case in the past when teams like Manor and Caterham had to close shop due to a lack of funds. However, F1 is now in a much stronger financial position in part to its US growth which has allowed for more favorable situations of the ten teams.

F1 unwilling to let American giant Andretti enter as eleventh F1 team

Formula 1’s franchise model has led to financial security among the existing teams. However, this has created a major barrier for Andretti to enter the sport. Michael Andretti‘s bid of an eleventh F1 team was rejected by FOM despite getting FIA’s approval. The existing teams have been reluctant to share a piece of the large pie since the sport has gained popularity in the US.

F1 will see Ford enter the sport in 2026 as a partner of Red Bull Powertrains. However, GM remains interested in becoming an engine supplier to Andretti via the Cadillac brand. Nevertheless, F1’s rejection of the Andretti-Cadillac bid has stopped the sport from getting a massive US giant in the sport. Undoubtedly, the entry of Andretti would’ve attracted new fans from the United States considering the team’s plans of bringing at least one American driver.

Certainly, Formula 1 has benefitted greatly from its push in the United States. However, for an average fan, it might be difficult to look at the merits of these efforts. F1 has faced backlash from fans for not allowing Andretti-Cadillac on the grid. While the sport continues to lure US audiences via its American races. However, the sport and the teams have been making a lot more money since Liberty Media expanded F1’s US plans. Ultimately, it is money that matters in the world of motorsport. As such, fans would need to continue to witness Formula 1’s ever-increasing efforts in the Land of the Free.

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