Formula One stands as one of the more contradictory entities in sports, as a rather downbeat earnings report contrasts with several positive indicators, including recent long-term race renewals, and significant optimism from its executives. 

F1 parent company Liberty Media said Wednesday that the motorsports circuit posted a 27% decline in revenue during 2025’s first quarter to $403 million while operating income swung from a prior $136 million profit to a $28 million loss. Part of the variance is owed to one less race in the quarter to start the 2025 season compared to last year, but F1 also saw a series of increased marketing, administrative, and personnel costs. 

Though not part of the fiscal quarter in question, F1 also saw a 32% year-over-year drop in U.S. viewership for last weekend’s Miami Grand Prix, ending a run of audience growth seen during each of the first five 2025 races. 

Those declines, however, stand against several recent deals, including a long-term extension for the Miami GP extending to 2041 and a similar renewal for the Mexico City Grand Prix to 2028, as race hosts continue to see long-term benefits in holding those races. F1 also has seen strong increases in fan engagement across multiple metrics, particularly social media. 

Overall, F1 says it now has $14.2 billion in future revenue contractually secured. 

“I’ve had the opportunity to spend some time with [F1 president and CEO] Stefano [Domenicali] over the last couple of races, and in speaking to both current sponsors, as well as potential sponsors, I don’t think I’ve been in a situation where I’ve seen this sort of energy and excitement around the possibilities to engage with the sport as with F1,” Liberty Media president and CEO Derek Chang said.

Bigger Questions

F1, meanwhile, continues to operate with two unresolved long-term issues: the state of its U.S. media rights, and whether Liberty Media will sell its controlling interest in the property.

On the former, F1 executives said they remain in “active and positive discussions with multiple partners.” An exclusive negotiating window for incumbent rights holder ESPN expired late last year.

“In a nutshell, I think our strategy will fit with the right partner that will be part of us developing the knowledge of our sport,” Domenicali said. 

On a potential sale, Liberty Media executives did not address recent rumors, particularly coming from the U.K., of a forthcoming process to market the company’s equity. Instead, they touted F1’s expected growth trajectory, as well as its current health amid broader economic unrest.

“Historically, Formula One’s business model has proven resilient in times of economic uncertainty,” Chang said. “We are encouraged by the strength of the business and look forward to completing the rest of an exciting season.”

The Formula One season is only one-fourth of the way through, but a second driver has already been demoted—at least temporarily.

Alpine announced Tuesday that it would replace rookie driver Jack Doohan, who had yet to score through six races, with Franco Colapinto for at least the next five Grands Prix. The team said that after the five races, it would implement a rotation for its second driver seat beside veteran Pierre Gasly.

Colapinto scored five points over nine races with Williams last season after he replaced Logan Sargeant. The announcement comes less than two months after Red Bull swapped in Yuki Tsunoda for Liam Lawson, who is now with its sister team Racing Bulls.

The move also came on the same day as the resignation of team principal Oliver Oakes. Alpine announced that Flavio Briatore, its controversial executive advisor, will be “covering the duties” of Oakes. Briatore had received a lifetime ban from F1 in 2009 for his involvement in a race fixing scandal, but his ban was removed a year later. This allowed him to return to F1 with Alpine last year.

Alpine has struggled in the constructors’ championship this year, ranking 9th out of 10 teams, just one point ahead of last-place Kick Sauber. 

Long-Term Investment

In F1, constructors are paid with prize money every year based on results from the previous season. The prize pool is a portion of the league’s revenue each year, with the top prize estimated to be around $140 million and the delta between each position around $10 million.

Last year, Alpine finished sixth for the second consecutive season, meaning a drop to ninth this year would cost about $30 million on top of any performance-related incentives from corporate partners. It’s a concerning decline for Alpine, especially considering the team looked poised to break through the midfield after finishing fourth in 2022.

Less than two years ago, Alpine, whose principal owner is French automotive company Renault, sold a 24% stake in the team worth around $210 million to an investment group led by Otro Capital and RedBird Capital Partners. Celebrities Ryan Reynolds, Rob McElhenney, and Michael B. Jordan were included in the investment.

Months later, it was announced that several star athletes were added to the investor list: NFL stars Patrick Mahomes and Travis Kelce, golfer Rory McIlroy, boxing great Anthony Joshua, and newly crowned EPL champion Trent Alexander-Arnold. 

While Alpine’s poor performance could be costly, the high-profile investments may still bear fruit should the sport continue to grow worldwide. F1 is also instituting major regulation changes next year that could bridge the gap between the 10 constructors and give Alpine a chance to get out of the cellar.

Editors’ note: RedBird IMI, of which RedBird Capital Partners is a joint venture partner, is the majority owner of Front Office Sports.

Saudi Arabia is pumping more money into women’s golf.

Five tournaments on the Ladies European Tour are being revamped with new formats and increased purses totaling $13 million as part of a new deal with the Public Investment Fund of Saudi Arabia, which is the financial backer of LIV Golf.

The move sees several events that were formerly part of the Aramco Team Series, named after the Saudi-owned oil company, now fall under the newly named PIF Global Series. 

Starting with this week’s tournament in Seoul, events in South Korea; London; Houston; and Shenzhen, China, will feature $2 million purses—double what they offered in 2024. Last year, the U.S. event on the Aramco Team Series was held in Tampa.

The PIF Saudi Ladies International has been added to the new series, too. This year’s edition of that tournament was played in February, won by Jeeno Thitikul, who took home $675,000 from the $5 million purse, which will remain intact in 2026.

Moving forward, all five of the PIF Global Series will feature team and individual competitions happening simultaneously. Captains, appointed via world rankings points, will draft teams each week.

It’s a positive financial development for the LET, which paid out roughly $39 million in prize money in 2024, compared to the nearly $126 million awarded on the LPGA Tour. The LPGA—which plays much more often in the U.S.—and LET announced a joint venture in 2019, and they have been discussing a merger. However, momentum for that stalled last year.