Formula 1: The 2026 Season Takes a Business Turn That Raises Questions
By Justine Offredi24 février 2026
On April 24, French media Business Book GP published its analysis of the 2025 season. In addition to the arrival of Cadillac, valued at more than $450 million, the report reveals a sharp increase in salaries across the eleven teams, totaling €448.2 million. At the same time, the FIA's stricter rules are causing controversy in the paddocks.
Formula 1 is approaching 2026 as a real economic turning point and is strengthening its high-end positioning more than ever. With the three weeks of winter testing just ending in Barcelona and then Bahrain, before the departure for Melbourne, the venue for the first Grand Prix, the salaries of the twenty-two drivers on the grid reveal huge disparities and an overall increase of 39%.
In total, the eleven teams will pay out €448.2 million in salaries, with €210 million concentrated among the last three world champions, namely Max Verstappen (€90 million), Lewis Hamilton (€80 million), and Lando Norris (€40 million). At the bottom of the rankings is Arvid Lindblad of the Racing Bulls team, with €1.2 million.
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The 2026 Australian Grand Prix as the first test
On Sunday, March 8, the drivers will line up for the first race in Melbourne at the Australian Grand Prix. Previously considered one of the most popular events by both fans and drivers (465,498 fans over four days, the largest crowd ever recorded), the event is nevertheless opening amid regulatory uncertainty.
The Albert Park circuit will be the first real-world test of the FIA's rules, the main focus of which is energy management. With smaller cars, a heavy reliance on battery power, and a redesign of the aerodynamics to improve overtaking, the announcement came as a shock to drivers at the start of the season and could shake up the grid.
This season aims to be carbon neutral, with the use of 100% sustainable synthetic fuel, without any fossil fuel content. One of the most controversial rules concerns battery management, which will require drivers to use a driving technique considered unnatural in order to maximize the available energy. Furthermore, in order to ensure greater fairness between small and large teams, physical track testing has been limited, encouraging the use of simulation. These changes are intended to correct certain issues that have arisen since 2022.
Heading for a decline in television audiences?
FIA Single-Seater Director Nikolas Tombazis has indicated that he remains open to possible regulatory adjustments regarding energy management if the concerns observed during testing are confirmed. However, he prefers to wait for the first few races, even though the options under consideration—such as limiting maximum electrical power—would not be ideal for drivers either.
In terms of audience figures, Formula 1 remains a global phenomenon. In 2025, each race weekend was watched by around 70 million viewers worldwide, with strong growth in Germany, Brazil, and France. The increase was particularly marked in Australia, with a 55% rise in viewership. In the United States, a key market for the sport, the average audience reached a record 1.32 million viewers on American television in 2025. However, a new era of exclusive broadcasting on Apple TV is about to begin in the country, which could also impact viewership. This raises the question: could the Melbourne Grand Prix, despite its record attendance, lose television viewers?
An increasingly high-end positioning
In terms of image and positioning, the Grand Prix continues to move upmarket. Sponsored by Louis Vuitton for the second year as part of LVMH's massive investment in 2025, the event will feature a cutting-edge music program headlined by Basement Jaxx, singer Rita Ora, Australian-New Zealand band Shouse, and DJ Duke Dumont. Each trophy will be presented in a custom-made trunk with the LV monogram.
In addition, ticket prices have risen again this year: +24.6% for four-day Park Passes and +32% for grandstand tickets, according to GP Destinations. Starting prices for four days range from $385 to $1,045 for the Piastri grandstand, and up to $7,400 AUD for access to the F1 Experiences lounge.
Finally, Cadillac F1 Team made a very notable entry, bringing the field to 22 cars. The American manufacturer Cadillac will field Sergio Pérez and Valtteri Bottas, after paying an entry fee estimated at $450 million.
Key points
• In 2026, the total amount of Formula 1 drivers' salaries reached €448.2 million (source: Business Book GP).
• In 2026, the FIA tightened the rules of the sport in order to correct the abuses observed on the circuits since 2022.
• In 2025, each Formula 1 Grand Prix weekend was watched by around 70 million viewers worldwide.
• The LVMH group has entered into a 10-year global strategic partnership with Formula 1 starting in 2025, representing an estimated investment of between $100 million and $150 million per year.
• American manufacturer Cadillac will join the Formula 1 starting grid in 2026.
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