What Makes More Money, NASCAR or F1?

• Formula 1 generates significantly more revenue than NASCAR due to its global audience, international sponsorships, and high-value broadcast deals.
• F1 teams and drivers operate on larger budgets, with top drivers earning over $40 million annually, compared to NASCAR’s more domestic-focused earnings model.
• NASCAR remains highly profitable within the U.S., but its regional scope and commercial structure limit its financial scale compared to Formula 1’s international business model.

Formula 1 generates more money than NASCAR, largely due to its global scale, high-value sponsorships, and international media rights. F1’s commercial model is built around worldwide race hosting fees, exclusive broadcasting contracts, and multi-national brand partnerships, many of which are worth hundreds of millions of dollars. While NASCAR maintains strong profitability, especially in the U.S. market, its revenue potential is limited by a more regionally focused audience and smaller international exposure.

As of recent estimates, Formula 1’s annual revenues exceed $2 billion, driven by its extensive global presence and diversified income streams. NASCAR’s revenues, while still significant, are typically reported in the $600–800 million range. This financial disparity highlights how global reach, brand positioning, and commercial innovation allow F1 to out-earn its American counterpart.

Overview of NASCAR and Formula 1

NASCAR and Formula 1 are both highly successful motorsport leagues, but they operate within different commercial ecosystems. NASCAR is centered in the U.S., with a fan-first approach and a deep cultural legacy. Formula 1 is structured as an elite, globally touring sport that prioritizes high-end technology, luxury branding, and international expansion.

F1’s revenue system is more centralized under Formula One Group and Liberty Media, which negotiate unified contracts on behalf of the sport. NASCAR’s financial framework is more fragmented, with revenues and sponsorships often managed at the team or track level.

History and Evolution

NASCAR was established in 1948 and has grown out of a distinctly American culture of stock car racing, originally linked to bootlegging during Prohibition. It has since developed into a mainstream sport with a dedicated national following and a calendar of over 30 races per year.

Formula 1 traces its roots to post-war Europe and the Grand Prix circuits of the 1920s and 1930s. It was officially launched as the Formula One World Championship in 1950. F1’s history is steeped in international prestige, engineering breakthroughs, and continuous innovation in car design and team management.

These divergent origins have shaped their commercial appeal: NASCAR’s is built on heritage and relatability; F1’s on exclusivity and technological superiority.

Current Global Reach and Popularity

Formula 1 maintains a far broader international footprint than NASCAR. It hosts races across five continents and maintains partnerships with global broadcasters and luxury brands. In 2023, F1 reported over 1.5 billion cumulative TV viewers, with circuits in locations such as Monaco, Singapore, and Abu Dhabi drawing massive global audiences.

In contrast, NASCAR remains concentrated in North America. While it has attempted to expand internationally through events like the NASCAR Mexico Series and recent race promotions in Europe, its core audience is primarily domestic. This difference in geographic scope limits NASCAR’s global revenue growth opportunities compared to F1.

Format and Regulations

NASCAR follows a format that emphasizes parity and fan engagement. Most races are held on oval tracks with stage-based points and a playoff system culminating in a championship. The cars are stock-based in appearance, designed for durability and close-quarter competition.

Formula 1 operates with a points-based championship across various track formats including street circuits, high-speed venues, and technical layouts. F1 regulations emphasize technical complexity, with strict design limitations, power unit requirements, and cost controls such as the budget cap.

These differences influence not just racing style but also how teams attract sponsorships, structure finances, and engage fans.

Economic Aspects

The economics of F1 and NASCAR differ significantly in structure and scale. F1’s financial model is built around international broadcasting rights, host city fees, and corporate sponsorships. NASCAR’s model is more reliant on domestic ticket sales, merchandise, and localized advertising.

F1’s centralized structure enables unified negotiations and consistent branding across all teams and events. NASCAR’s decentralized model gives more autonomy to individual tracks and teams but can result in variability in sponsorship and income distribution.

Revenue Streams

Formula 1 generates revenue from:

• Hosting fees paid by cities and promoters (often $20–50 million per event)
• Global media rights negotiated with broadcasters in over 180 countries
• Tiered sponsorships with luxury and tech brands such as TAG Heuer, AWS, and Aramco
• Official partnerships and licensing deals, including branded content and virtual products

NASCAR earns from:

• Domestic television contracts
• Race-day ticket sales and track concessions
• Merchandise sales and local sponsorships
• Sanctioning fees from race tracks and smaller series

While both sports monetize effectively within their scope, F1’s international presence allows it to tap into larger, more diverse commercial partnerships.

Prize Money and Earnings

Formula 1 distributes prize money through a structured system governed by the Concorde Agreement. Teams are paid based on their Constructors’ Championship position, with historical bonuses granted to long-standing or successful teams (e.g., Ferrari). A portion of profits is distributed equally, but top-performing teams often receive significantly larger payouts.

NASCAR’s prize pool is distributed based on race results, points standings, and sponsorship bonuses. Payouts vary widely by team and performance, and the overall distribution model is less transparent than F1’s.

Top F1 drivers can earn base salaries exceeding $40 million annually, with additional bonuses and endorsement deals. NASCAR’s highest earners make between $10–15 million, reflecting the overall difference in financial scale.

Budgets and Expenditures

In Formula 1, the cost cap introduced in 2021 limits most teams to around $135 million annually, not including driver salaries, marketing, or certain development areas. This was implemented to reduce spending gaps between top and bottom teams and increase competition.

NASCAR has no formal budget cap. Team expenses cover car development, logistics, staffing, and race preparation. Operational costs vary but tend to be lower than F1 due to standardized car templates and fewer international logistics.

Despite these differences, both series face escalating costs related to travel, parts, and competition.

Competitors and Performance

The commercial appeal of both NASCAR and F1 is heavily influenced by the visibility and performance of star drivers and elite teams.

Driver Profile and Earnings

Formula 1 drivers often hold global celebrity status, with extensive sponsorship portfolios and mainstream recognition. Endorsements, digital presence, and international media exposure amplify their earnings. Lewis Hamilton and Max Verstappen are examples of drivers who have turned competitive success into multimillion-dollar brand empires.

NASCAR drivers are well-known within the U.S. and command strong domestic loyalty. While their earnings are significant, especially for veterans like Denny Hamlin or Chase Elliott, their global marketing potential is more limited.

Teams and Brands

F1 teams like Red Bull Racing, Mercedes, and Ferrari operate as globally recognized entities, often in partnership with technology firms, energy companies, or luxury brands. Their brand value is comparable to major sports franchises.

NASCAR teams such as Hendrick Motorsports and Joe Gibbs Racing align with household-name sponsors and car manufacturers like Chevrolet and Toyota. These relationships are vital to team funding but are typically more regional in nature.

The valuation of F1 teams has increased significantly under Liberty Media, with some teams now exceeding $1 billion in market value.

Technical Specifications

Formula 1 cars are among the most technologically advanced vehicles in the world. They feature hybrid V6 turbo power units, active energy recovery systems, complex suspension geometry, and extensive use of carbon fiber. A typical F1 car produces over 1,000 horsepower and is optimized for cornering speed and aerodynamic efficiency.

NASCAR vehicles are high-powered stock cars with V8 engines producing roughly 670–750 horsepower. They prioritize mechanical grip and robustness over downforce and digital telemetry. Car designs are more standardized, with an emphasis on driver parity and close racing.

These engineering philosophies reflect the core identity of each sport and influence their commercial strategies.

On-Track Comparisons

F1 races on a wide range of circuit types and relies heavily on pit strategy, tire management, and downforce optimization. Races usually last around 90 minutes and involve complex data analysis in real-time by teams of engineers.

NASCAR focuses on endurance and pack racing. Races often exceed 3 hours and feature caution flags, restarts, and strategy changes driven by track position. The racing style favors resilience, tactical drafting, and team support over technical precision.

While F1 may look more technologically complex, NASCAR’s dynamic, contact-heavy format demands a different kind of driver skill and team coordination.

Commercial Strategies

Formula 1’s business strategy centers around exclusivity and premium partnerships. Title sponsors, official suppliers, and content rights are carefully structured to maintain high brand equity. Luxury-focused sponsors and high-value deals help boost revenues.

NASCAR’s strategy is more volume-oriented, focusing on regional brand partnerships, direct fan engagement, and maximizing race-day revenue across dozens of U.S. venues.

F1 has increased its commercial footprint through Netflix’s Drive to Survive and new markets like Las Vegas and Qatar, bringing in new revenue streams. NASCAR has also expanded into streaming and diversified its race formats to appeal to new audiences.

Fan Engagement and Marketing

NASCAR builds loyalty through accessibility. Fans often interact directly with drivers, attend fan zones at events, and enjoy pre-race festivities. Its marketing focuses on familiarity and American motorsport culture.

Formula 1 markets exclusivity and glamour. Fan zones, esports, and digital content like telemetry overlays and strategy breakdowns target a more global, data-savvy audience.

Both series invest in social media campaigns, merchandise, ticketing experiences, and online platforms to deepen fan engagement.

Sustainability and Future

Formula 1 has committed to achieving net-zero carbon emissions by 2030. This includes synthetic fuel development, hybrid innovation, and more sustainable logistics.

NASCAR has also announced sustainability efforts, including the use of ethanol-blended fuels and investment in electrification research. These initiatives reflect growing environmental awareness among sponsors and fans alike.

Long-term financial growth in both series will depend on aligning environmental responsibility with innovation and entertainment value.

Influence on Popular Culture

NASCAR’s presence in American culture is seen through films, music, and branding partnerships with mainstream consumer products. It represents tradition, community, and national identity.

Formula 1 has become synonymous with luxury, technology, and international competition. Its drivers and teams are frequently featured in fashion, lifestyle media, and high-tech collaborations.

Contribution to Automotive Innovations

F1 leads in technology transfer, with developments in hybrid powertrains, carbon composites, and aerodynamics often influencing road car design.

NASCAR focuses on engineering resilience and simplicity, with occasional crossovers into safety equipment and tire technology. While less tech-intensive, it plays a role in advancing motorsport standards and fan-focused innovation.

Global Sporting Significance

F1 holds greater weight on the global sports stage. The title of Formula 1 World Champion is internationally recognized, and the sport’s influence spans continents and cultures.

NASCAR, while dominant in the U.S., has limited visibility beyond North America. Despite this, it maintains a fiercely loyal audience and continues to serve as a benchmark for competitive racing in the domestic market.