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MODULE 2
FINANCIAL RESILIENCE-STAYING IN THE RACE
Lesson 3
WHAT IS FINANCIAL RESILIENCE?
For so many of us, the exhilaration of F1 lies in the heart-pounding moments, but beyond the thrill lies a complex world of finance that shapes every podium finish.
This is a beginner-friendly course for anyone who wants to understand basic financial concepts. If you’re someone who enjoys Formula 1—or just want real-world examples to make sense of ideas like budgeting, revenue, or sustainability—this course is for you.
We use Formula 1 to explain how money moves in a high-stakes environment: how teams make financial decisions, how rules shape what they can spend, and how global challenges like sustainability impact the business side of sports. Every term is explained clearly and always ties back to a real-life example in F1.
This is a beginner-friendly course for anyone who wants to understand basic financial concepts. If you’re someone who enjoys Formula 1—or just want real-world examples to make sense of ideas like budgeting, revenue, or sustainability—this course is for you.
We use Formula 1 to explain how money moves in a high-stakes environment: how teams make financial decisions, how rules shape what they can spend, and how global challenges like sustainability impact the business side of sports. Every term is explained clearly and always ties back to a real-life example in F1.
Lesson 4
NFL vs F1 – TWO MODELS
FOR TWO MARKETS
In the sports world, financial resilience is crucial. Both the NFL and F1 rely on multiple income sources—like ticket sales, media rights, and sponsorships—but each has its own unique challenges. Both F1 and NFL rely heavily on sponsorship deals, but in different ways. F1’s sponsors are global brands like car companies and luxury goods, while the NFL partners with companies that are more focused on American audiences. Also, both rely on die-hard fans to keep them strong. Loyal fans are the backbone of their success! This loyalty means stable income even during tough times.
The NFL and F1 differ in where the money comes from. For the NFL, most of its revenue comes from U.S. television deals, ticket sales, and merchandise. It counts on big crowds filling up stadiums and companies paying top dollar for ads and media rights. The NFL is mostly about the local market. Formula 1, though, is a global sport, so its income comes from all over the world. F1 earns from hosting races in different countries, international TV rights, and partnerships with international brands.
The NFL and F1 differ in where the money comes from. For the NFL, most of its revenue comes from U.S. television deals, ticket sales, and merchandise. It counts on big crowds filling up stadiums and companies paying top dollar for ads and media rights. The NFL is mostly about the local market. Formula 1, though, is a global sport, so its income comes from all over the world. F1 earns from hosting races in different countries, international TV rights, and partnerships with international brands.
Lesson 5
BUILDING A RESILIENT BUSINESS MODEL
Think of F1 as the worldwide superstar and the NFL as the hometown hero. With F1, our worldwide superstar, events happen across the continents. So, if one country faces a downturn, F1 can lean on others. The NFL, our hometown hero, focuses mainly on the United States, so it’s less insulated from challenges that hit the American economy.
If ticket sales dip or a season is disrupted, financial resilience means the NFL is prepared to handle it without things going sideways. They might have rainy-day funds, solid sponsorship deals, or other revenue streams to fall back on so that the league and teams stay financially secure.
In F1, it’s a bit different. They rely on factors like race hosting fees, team sponsorships, and global viewership. Since races are held all over the world, F1 faces the added complexity of fluctuating currencies, travel costs, and international economic conditions. Economic resilience for F1 means having strategies that can manage these risks, such
as cancelled races or high hosting fees, and still making sure it can still run a full calendar and fund teams.
For both the NFL and F1, economic resilience is about making sure the businesses are running strong and being ready for anything that might come their way. It’s what keeps these leagues thriving and able to offer exciting events year after year, keeping fans in the game and players on the field or track.