Who Really Controls FORMULA 1? Inside the FIA’s Power and Controversy

What the FIA Is and Why It Matters

I get asked all the time who actually runs Formula 1. The short answer is the Fédération Internationale de l’Automobile, or FIA. Founded in 1904 and headquartered in Paris, the FIA is the governing body of world motorsport. It owns the championship legally, creates the sporting and technical regulations, enforces compliance, and oversees safety across the paddock.

The FIA is structured as a not-for-profit organisation. That means it is not in the business of distributing profits to shareholders. Instead, any surplus is reinvested in motorsport: the seven FIA world championships, grassroots initiatives, and member clubs around the world. But being the referee and regulator of the world’s most technologically advanced motorsport places the FIA under constant scrutiny from drivers, teams, commentators, and fans.

Ownership of Formula One and the 110 Year Lease

One of the FIA’s most valuable assets is the ownership of Formula 1. In the 1990s the commercial rights were leased to Formula One Management, now under Liberty Media, for a period of 110 years. Yes, 110 years. The practical effect is that while Liberty Media runs the commercial side of the business—media rights, sponsorship sales and track promotion—the FIA remains the legal owner of the championship and the authority on sport governance and safety.

The presidency currently sits with Mohammed Ben-Salayam, who took over in 2021. Elections are held periodically, and internal politics and election rules are part of why governance conversations regularly surface in the paddock. These governance questions matter because they shape who sets the rules, how transparent decisions are, and how the sport responds when controversy arises.

How the FIA Makes Money

Despite being a not-for-profit organisation, the FIA runs a sizeable operation and reports significant revenues. In 2024 their operating income was $205,000,000, up 17 percent year on year. They recorded a small profit of about $3,500,000—their first positive result in nearly a decade after losses in prior years.

The FIA’s revenue streams related to Formula 1 are diverse and include:

• Super licence fees. Each driver must hold an FIA super licence to race. In 2025 super licence fees were reported at around €6,200,000 (about $7,200,000). The licence fee is a combination of a base amount and an additional fee for points scored in the previous season. Typically teams pay these fees, not the drivers personally.
• Team entry fees. Each team pays an annual entry fee to the FIA. In 2025 the total entry fees came to approximately $26,000,000, up 7 percent on 2024.
• Commercial revenue share. Formula One Management pays the FIA a percentage of the revenue generated by the Formula 1 business. That covers media rights, sponsorship income and race promotion fees.
• Event and administration fees. Fees for sprint races, additional regulatory services, and administrative charges also contribute.
• Fines. Rule infringements and on-track breaches attract fines that feed into the FIA’s funds.

Examples of Fines and Reinvestment

Fines are a visible part of the FIA’s enforcement toolkit. Examples from recent seasons include:

• Haas: €5,000 for leaving a fan attached to Oliver Bearman’s car during a reconnaissance lap at Monaco.
• Carlos Sainz: €20,000 (with €10,000 suspended) for arriving late for the national anthem in Japan.
• VCARB: €5,000 for an unsafe release during the Chinese Grand Prix.

Where does that money go? The FIA maintains that these funds are used for beneficial initiatives. That includes grassroots motorsport development, road safety programmes, and campaigns addressing issues such as online abuse of competitors. The organisation explicitly reinvests surplus into motorsport and member clubs rather than treating it as profit to distribute.

The FIA on the Ground: Race Staff and Paddock Presence

At a race weekend the FIA has a significant operational footprint. Typically around 65 FIA staff attend each Grand Prix, and they manage dozens of responsibilities:

• Media operations: issuing media passes, running the TV media pen and overseeing main press conferences.
• Race procedures: handling start and finish procedures, Parc Ferme activities, podium coordination and the official press briefings.
• Officials: stewards to adjudicate incidents, scrutineers to inspect cars, marshals for trackside duties and medical delegates coordinating the rescue teams and ambulances.
• Paddock hospitality and administration: an FIA paddock presence includes hospitality for guests, offices for the president and senior officials, and liaison with race promoters.

The stewards are particularly visible. They are appointed to preside over incidents and hand down penalties. Despite their importance, stewards are not always permanent staff, and calls have been made to make the body of stewards a permanent panel to improve consistency in sanctioning.

Safety: The FIA’s Most Important Role

Safety is the area where the FIA’s influence is most obvious and broadly acknowledged. Motorsport used to be extremely dangerous; fatalities were tragically commonplace. Over the decades the FIA introduced multiple innovations that have made Formula 1 orders of magnitude safer.

Key safety responsibilities include:

• Vehicle crash testing and homologation to ensure cars meet strict survivability standards before they race.
• Regulation and inspection of cockpit safety, headrests, seatbelts and helmet standards.
• Circuit homologation to ensure tracks meet standards for barriers, runoff, medical facilities and marshal organisation.
• Approval and oversight of medical cars, ambulances and rescue teams at every event. The FIA Medical Delegate coordinates local medical teams to ensure rapid, expert accident response.

One visible innovation is the Halo introduced in 2018. Made of titanium, the Halo has protected drivers from flying debris and in some cases from direct impacts with other vehicles. Safety improvements continue every season, with scrutineers and FIA engineers working to evolve standards and procedures.

Scrutineering, Penalties and High Profile Examples

Ensuring technical compliance is a day-to-day duty of the FIA. Scrutineers physically inspect cars to verify conformity with the sporting and technical regulations. Non compliance can lead to penalties, exclusion from results or disqualification.

A notable example is the case of George Russell at the Belgian Grand Prix where his car was found underweight post-race and his win was removed. Incidents like this highlight how regulatory enforcement can change race outcomes and why teams and fans watch scrutineering closely.

Race Management, the Race Director and Reforms

The FIA appoints a race director to manage the overall conduct of each race weekend. The race director’s responsibilities include issuing red flags, deploying the safety car and restarting sessions. The role carries enormous on-track influence and, as we have seen, decisions made in race control can have championship-defining consequences.

Following the controversial finish to the 2021 Abu Dhabi Grand Prix, the FIA reviewed and restructured race management. Changes included the creation of a virtual race control room to mirror the VAR model in football, and revised communication protocols between teams and race control. The aim was to increase clarity, consistency and transparency in the decision-making process.

Recent Incidents and Investigations

Incidents continue to test race control and procedural clarity. One recent example involved an incident in Mexico City where Liam Lawson nearly struck a marshal on lap 3 while marshals were recovering debris. The official statement from race control said marshals had been placed on standby to clear debris once all cars had passed turn one. When Lawson pitted the instruction to dispatch was rescinded and double yellow flags were shown. An investigation looked at whether the marshal had received the instruction to vacate the track, with questions about radio coverage and marshal awareness.

Events like these demonstrate how procedures, communication and human factors intersect and why post-race reviews remain essential for continuous improvement.

Controversy, Transparency and Governance

High profile controversies have tested public confidence in the FIA. Two notable examples include Ferrari’s secret engine settlement in 2019 and the handling of the 2021 championship decider. These episodes produced intense scrutiny of the FIA’s neutrality, consistency and governance.

In response, the FIA has taken steps to improve transparency. Changes include more defined appeals processes, improved communication with teams and fans, and an emphasis on publishing clearer explanations for decisions. These reforms are ongoing, and governance remains a live debate among member clubs, teams and stakeholders.

What the FIA Spends Its Money On

Behind the criticism and the headlines, the FIA spends funds on a range of programs:

• Reinvestment into world championships and national member clubs.
• Grassroots motorsport support and development pathways.
• Road safety campaigns and global initiatives to reduce vehicle-related harm.
• Operational costs for race weekends: staff, scrutineering, medical resources and race control technology.
• Public campaigns such as efforts to reduce online abuse toward participants in the sport.

So while the FIA might seem remote or faceless when a decision goes against a driver or team you support, much of the money it raises is channelled back into the sport and safety initiatives that benefit the wider community.

Final Thoughts

The FIA plays a vital and complex role in Formula 1. It is the rule maker and enforcer, the safety guardian, the legal owner of the championship and a key partner to commercial operators. That mix of responsibilities ensures the FIA will always be at the centre of debate—praised when safety innovations prevent tragedy and critiqued when its choices alter championship outcomes.

Understanding how the FIA operates, how it funds itself and where those funds are invested helps cut through some of the noise. The organisation faces an ongoing challenge: deliver consistent, transparent and fair governance while constantly improving safety and the sport itself.

Frequently Asked Questions

Who legally owns Formula 1?

The FIA is the legal owner of the Formula 1 championship. The commercial rights were leased to Formula One Management in the 1990s for 110 years; today Formula One Management is owned by Liberty Media, but the FIA retains ownership and regulatory authority.

How does the FIA make money from Formula 1?

The FIA’s revenue from Formula 1 comes from super licence fees, team entry fees, a share of commercial revenues paid by Formula One Management, event and administration fees, and fines. The totals change year to year; for example, operating income in 2024 was $205,000,000 with a small profit reinvested into the sport.

Do drivers pay super licence fees?

Drivers are required to hold an FIA super licence and the fee structure includes a base amount plus additional charges based on points scored the previous season. In practice, teams typically pay the super licence fees on behalf of their drivers.

Where does FIA money go?

The FIA reinvests surpluses into the seven World Championships, member clubs and initiatives such as grassroots motorsport, road safety programmes and campaigns against online abuse. It also funds race weekend operations including safety and medical provision.

Why are the stewards sometimes criticised?

Stewards are appointed to rule on incidents, but they are not always permanent, full-time staff. Critics argue this can produce inconsistent decisions between events. Calls for a permanent steward panel aim to increase consistency and predictability in rulings.

What safety responsibilities does the FIA have?

The FIA oversees crash testing, vehicle homologation, cockpit and helmet standards, circuit homologation, medical services and marshal organisation. Notable safety innovations include the Halo device introduced in 2018 and ongoing improvements to car and track standards.