Source:REUTERS/Benoit Tessier
[Saba Sports News] F1, often referred to as the “crown jewel” of motorsports, has a prestigious event known as the F1 Monaco Grand Prix held on the Monte Carlo street circuit. While F1 has been actively expanding globally in recent years, Europe remains its genetic location and the most significant battlefield. The F1 Monaco Grand Prix perfectly encompasses the business model of the sport, with its extravagant entertainment, celebrities, top drivers, luxury goods, and shows, all representing the influence and impact of F1. Notably, the advertising, ticket sales, and TV broadcast rights of the event are based on the massive viewership it attracts. Event advertising rights are divided into two categories: FOM and team. FOM sells advertising to F1’s global partners and official partners, while teams sell sponsorships. The advertising revenue, event hosting revenue, and broadcast copyright revenue generated by FOM eventually get distributed to the teams based on the “Concorde Agreement.” Previously, the Concorde Agreement was signed every ten years. However, the first “Concorde Agreement” under Liberty Media Group’s ownership is valid for five years, from 2021 to 2025. It is reported that a draft of the new 2026 “Concorde Agreement” has been sent to ten teams, with some media speculating that it could change the business model and be tied directly to each team’s performance.