Formula One ManagementEdit

Formula One Management (FOM) is the commercial rights holder for the FIA Formula One World Championship, charged with marketing, media rights, sponsorship development, event organization, and the overall commercial administration of the sport. Working in tandem with the FIA and the teams, FOM negotiates broadcast contracts, oversees sponsorship programs, and coordinates with the circuits that host the races to maximize spectator appeal and monetization of the Formula One brand. The organization sits at the intersection of sport and business, where the goal is to turn global interest into durable, high-margin revenue while maintaining a sport that fans find compelling and accessible.

Since 2017 the commercial rights to the sport have been owned by Liberty Media as part of the modern corporate structure that culminated in the formation of the Formula One Group under Liberty’s ownership. The arrangement is codified in ongoing agreements with the teams known as the Concorde Agreement, which define revenue sharing, governance, and long-term planning. Historically the sport’s leadership rested with promoter figures such as Bernie Ecclestone before the Liberty era, and the current framework continues to evolve as the sport expands its global footprint.

From a market-oriented perspective, FOM’s model has delivered substantial growth in global audiences and sponsorship value, leveraging a premium product that blends high-speed technology, global branding, and international events. The structure rewards investment in teams, facilities, and regional promotions that extend the sport’s reach. Critics, however, point to the way revenue is distributed, the pace of regulatory change, and the balance between commercial incentives and sporting fairness. Those tensions are central to how FOM and the Concorde Agreement navigate the sport’s future.

Ownership and corporate structure

The modern commercial framework centers on FOM as a subsidiary operating the business side of the sport under Liberty Media’s ownership. The parent company and its affiliates coordinate with national and regional promoters to secure races and media arrangements. Liberty Media is responsible for investment and strategic direction, while the sport’s day-to-day commercial operations are managed through the Formula One Group.
The teams participate in governance through the Concorde Agreement, which sets the terms for revenue distribution, cost controls, and long-range planning. This framework seeks to align incentives for performance with sustainable growth across different markets.
The FIA remains the sport’s governing authority for safety, competition rules, and the acceptance of circuits into the calendar. The dynamic between the FIA and the commercial rights holder is a core feature of Formula One’s governance landscape, with clear delineations of sporting versus commercial responsibilities.

Revenue model and governance

Revenue streams span broadcast rights, sponsorship, licensing, hospitality, and consumer products. The broadcast deals extend across national networks and streaming platforms, helping to monetize the sport’s global audience. The sponsorship program leverages a high-visibility global brand, with partners aligned to performance, technology, and premium fan experiences. See also Broadcast rights and Sponsorship.
The teams receive a share of the commercial revenue under the terms of the Concorde Agreement. The distribution model blends a base allocation with performance-related components and historical contributions, balancing predictability for teams with incentives to invest and compete at the highest level. See also Concorde Agreement.
In an era of rising costs and intensified competition for fans, FOM has supported procedures designed to curb excessive spending through a corporate cost model, sometimes described as a cap on certain operational costs. Advocates argue the measures protect viability for smaller teams and long-term competitiveness; critics say they can constrain aggressive investment or complicate planning. See also Cost cap (Formula One).
The commercialization strategy increasingly leans on digital platforms and direct-to-consumer offerings, including online streaming and enhanced fan engagement tools, while preserving traditional broadcast relationships. See also F1 TV.

Regulation and governance

The FIA’s role is to regulate the sport’s rules, safety standards, and on-track competition. The interplay between sporting regulation and commercial development is a defining feature of Formula One’s governance. See also FIA.
The Concorde Agreement formalizes the relationship among the FIA, the teams, and the commercial rights holder. It covers annual budgets, prize funds, governance processes, and the terms of race promotion. See also Concorde Agreement.
Corporate leadership decisions—such as race calendar planning, venue selection, and branding strategies—are driven by the commercial arm in concert with promoters, with the aim of maximizing the sport’s global footprint while keeping the sport attractive to fans and sponsors. See also Formula One Group.

Global expansion and media strategy

Expansion into high-growth markets has included the addition of new Grands Prix and the strengthening of existing flywheel markets, notably in the United States and the Middle East. The calendar broadens the sport’s visibility and fan base, while balancing the logistical realities of a global circuit.
Media strategy emphasizes a premium product experience: compelling on-track action, protected branding, and accessible content through traditional networks and new digital platforms. The strategy seeks to attract sponsors with clearly defined value propositions and measurable reach in key demographic segments. See also Formula One World Championship and Liberty Media.

Controversies and debates

Revenue distribution and competitive balance: A persistent debate concerns how prize money and development funds are allocated among teams. Proponents of current arrangements argue that a strong, market-tested model rewards performance and investment, helping to sustain a globally recognized sport with top-tier brands. Critics contend that the structure can entrench the advantages of the already successful teams, making it harder for smaller outfits to close the gap. From a market-minded viewpoint, reforms should preserve strong incentives for investment while improving opportunities for genuine competitive improvement across the grid. See also Concorde Agreement.
Regulation versus commercial freedom: The tension between sporting fairness and commercial growth is ongoing. Those who favor a lean regulatory environment argue that predictable, performance-driven incentives drive innovation and efficiency. Critics warn that overly aggressive cost controls or rule changes can dampen innovation or create uncertainty for long-term project planning. See also FIA.
Sustainability and costs: The push to make Formula One a more sustainable, lower-emission product has generated both enthusiasm and concern. Proponents argue that modern technology, supply-chain efficiency, and tighter event logistics can deliver an exciting product while controlling costs. Detractors worry about the burden on teams and promoters in smaller markets, as well as the potential for green initiatives to complicate operations or raise costs. See also Cost cap.
Market size and fan experience: The drive to broaden audience reach—especially in North America and other large markets—has brought Rewards and challenges: more fans, more sponsorships, but also higher expectations for a seamless, technology-forward fan experience and strong local engagement. See also F1 TV.