How Do Formula 1 Teams Actually Make Money?

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I watch F1 races every week and I have always been amazed by the amount of money that flows in and out of the sport. From the crazy crashes, to shipping cars all around the world, and to paying for hundreds of employees - how do they do it? And can it ever be a profitable activity or are they just burning cash for fun?

And...if I wanted to start my own F1 team, what would it take and how expensive would it be?

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