When Liberty Media bought Formula 1 (F1) for $8 billion it was taking a risk. Although Bernie Ecclestone had led F1 into its premier position in world sport, it was starting to stagnate. Left on that path, the sport would have deteriorated further.

We spoke to the experts at JustGamblers who told us:

"There were obvious issues with F1 when Liberty Media took over. There was little appeal for younger people, Sir Lewis Hamilton and Mercedes were monopolizing the sport, and social media presence was limited."

So, Liberty Media purchased F1 at a time when it was in serious need of a boost and changes were vital.

The challenge of creating a better product

In 2017, Liberty Media faced the challenge of turning an ailing product into something more exciting. There was an opportunity to improve the experience of F1 by making it more competitive and interesting to new younger fans.

At the start of its journey, Liberty Media faced issues with making changes. Top teams like Red Bull, Ferrari, and Mercedes were against potential financial changes that would even out competitiveness in the sport, and expansion into the US was slow.

Then the pandemic arrived, causing F1's revenue to fall by 43% to one billion, in 2020. Liberty Media had to make plans to improve the situation. It began by transferring assets into the sport to support teams that were struggling. It also managed to hold 17 races despite pandemic restrictions.

Revenue from the documentary 'Drive to Survive' also made a difference. The popular show also had the added positive effect of attracting larger female and young audiences to the sport.

Spending caps, new cars, and the US market - the way forward

As pandemic restrictions eased, the position of F1 improved and it's now in a positive position. The top teams have accepted a spending cap of $145 million (excluding money for marketing and driver salaries). This makes winning more dependent on expedient use of funds.

In addition, new cars have been introduced that make it easier to overtake and the competition between Verstappen and Hamilton has captured the imagination of race fans.

Finally, expansion of F1 in the US is now happening. The Miami Grand Prix has joined the US Grand Prix on the schedule. In November 2023, it will be joined by a night race in Las Vegas. This seems set to be the end of the US expansion for now, although the top team at F1 has said nothing can be ruled out.

There is no doubt that Liberty Media has made a significant impact on F1 by modernising it, changing the funding structure, and increasing the size of its audience. Expanding into fresh markets has also improved the standing of F1 and it seems to be in a far more positive position than it was nearly five years ago when Liberty Media took a chance with its $8 billion purchase.