What Happened to Formula 1?

Formula 1 has experienced a remarkable resurgence and sustained growth since its acquisition by Liberty Media in 2017 for approximately $4.6 billion. This period has been characterized by strategic efforts to expand its global fanbase, particularly in the United States, and enhance its commercial appeal. The Netflix docuseries 'Drive to Survive' played a pivotal role in attracting new audiences, contributing to a global fanbase that reached 827 million by 2025, with significant growth among younger and female demographics.

Financially, F1 has demonstrated robust performance. In 2025, Formula 1's revenue increased by 14% year-over-year to $3.9 billion, with operating income climbing 28% to $632 million. Fan attendance at races also hit a new record of 6.75 million spectators in 2025, a 4% increase from 2024, and live TV viewership saw a 21% rise compared to the previous year. Liberty Media further diversified its motorsport portfolio by acquiring Dorna Sports, the commercial rights holder for MotoGP and World Superbikes, in 2025, integrating it into the Formula One Group.

Key turning points leading up to the current state include the introduction of a budget cap in 2021, aimed at leveling the playing field and promoting closer competition. The sport's commitment to sustainability has also become a central pillar, with a target to achieve net-zero carbon emissions by 2030. A major step towards this goal is the mandatory use of 100% advanced sustainable fuels from the 2026 season, which are derived from non-food biomass, renewable non-biological feedstocks, or municipal waste.

Current Status as of 2026-05-22: The 2026 season marks a significant technical revolution for Formula 1. New power unit regulations have been implemented, retaining the 1.6-liter turbocharged V6 internal combustion engine but removing the MGU-H and significantly increasing the MGU-K's electrical output to 470 bhp. New active aerodynamics and narrower tires are also part of the overhaul, designed to reduce drag and improve overtaking. The grid has expanded to 11 teams for the first time since 2016, with Audi entering as a full works team after acquiring Sauber in 2024, and Cadillac making its debut using Ferrari power units, with plans for an in-house General Motors power unit by 2029. Honda has formed an exclusive partnership with Aston Martin, and Ford has returned to support Red Bull Powertrains. The 2026 calendar features 24 Grands Prix, including a new race in Madrid. As of May 22, 2026, the season is in full swing, with Kimi Antonelli currently leading the World Drivers' Championship for Mercedes, who are also at the top of the Constructors' standings. Mercedes is introducing its first major upgrade package at the Canadian Grand Prix, while Red Bull is reportedly struggling to adapt to the new regulations. The FIA has also introduced an 'ADUO' (Additional Development and Upgrade Opportunities) system for power unit manufacturers to ensure competitive balance.