The business of racing

The business model of professional motorsport varies depending on the specific series and team. However, there are a few common elements that make up the financial structure of most motorsports organizations.

One of the main sources of income for professional motorsports teams is sponsorship. Sponsors provide funding in exchange for exposure on the team's cars and uniforms, as well as other promotional opportunities. Sponsorship can come from a variety of sources, including companies in the automotive industry, consumer brands, and even local businesses.

Another source of income for motorsports teams is prize money. Many racing series award prize money to the top finishers in each race, as well as to the overall championship winners. This prize money can be a significant source of income for teams, especially for those who consistently perform well.

Finally, some motorsports teams also generate revenue through merchandise sales. This can include things like team uniforms, hats, and other fan gear.

Overall, the business model of professional motorsport is based on a combination of sponsorship, prize money, and merchandise sales. Teams must carefully manage these sources of income in order to stay financially stable and competitive in the highly competitive world of motorsports.