Sportico’s annual valuation of Formula 1 (F1) teams reveals a remarkable surge in franchise worth. The average team is now valued at $4.55 billion, up 33% from the 2025 figure and 197% since 2023. Even without the newest entrant, Cadillac, the increase climbs to 39% over last year.
Growth outpaces other major leagues
According to Sportico’s Kurt Badenhausen, the average F1 team value rose 33% year‑over‑year, eclipsing growth rates in the NFL (30%), NBA (28%), NHL (16%), MLB (12%) and global soccer clubs (11%). The league’s rapid expansion into new international markets – notably the United States, India and China – is a key driver.
U.S. races boost the sport’s profile
FIA President Mohammed Ben Sulayem highlighted the United States as a heavyweight market, now hosting three Grand Prix events: Miami, Austin and Las Vegas. “Texas deserved it,” he said of the long‑term contract for the United States Grand Prix, emphasizing the importance of stable, high‑profile venues for the sport’s growth.
Team revenue and profitability
F1 teams generated an estimated $5.2 billion in revenue during the 2025 season – roughly $523 million per team – a 16% increase over the prior year. The cost cap, raised to $215 million for 2026, helped seven of the ten teams turn a profit in 2025. Only McLaren missed out due to a one‑time $130 million executive payout.
Ferrari remains the most valuable franchise
Ferrari topped Sportico’s list for the fifth consecutive year, now valued at $8.2 billion, up from $6.4 billion the previous season. The Italian marque’s rise reflects strong on‑track performance and the commercial boost from high‑profile drivers.
Cadillac’s debut and valuation challenges
Cadillac entered the grid as the 11th team for 2026, valued at $2.5 billion after paying a $450 million dilution fee and incurring over $1 billion in startup costs. The team is projected to lose $400 million this year and may be four years away from profitability. Owner Mark Walter is reportedly considering a sale of his stake.
Cost cap controversy
While the cost cap has been praised for stabilizing finances, some team principals criticize its impact on competition. Williams CEO James Vowles told The Fast and the Curious podcast that the cap has reduced points for mid‑field teams, noting a drop from 10% to 5% of podium finishes for teams outside the top four.
Investor appeal
Sportico concludes that F1 franchises remain highly attractive to investors, with revenue multiples still below those of NFL and NBA teams. The league’s blend of global fan growth, lucrative media deals and a regulated cost structure positions it for continued financial expansion.
Original reporting: All Sports Feed (HLL/CB) — read the source article.
