How an F1 spending cap made racing teams more investable
Publishing timestamp: 2023-11-16 09:25:45
Summary
The article discusses how the introduction of a league-wide budget cap in Formula 1 has made team businesses more sustainable and boosted valuations. The budget cap limits how much teams can spend on developing and building their race cars, similar to U.S. sports leagues. This has made team balance sheets more predictable and has made it easier to bring new sponsors on board. The article also mentions the increased value of Formula 1 teams, with bottom teams now being valued at around $750 million and top teams at around $3 billion.
Sentiment: POSITIVE
Keywords: media, formula one, greg maffei, united states, christian horner, breaking news: business, liberty media corp, business, chipotle mexican grill inc, business news, sara eisen, sports, technology,
Source: https://www.cnbc.com/2023/11/16/f1-spending-cap-made-racing-teams-more-investable.html