THE BUSINESS OF BEING OSCAR PIASTRI
Formula 1 may be the world’s most glamorous sport, but for Oscar Piastri, it’s also one of the most lucrative. At just 24, Australia’s highest-paid athlete is earning more than US$40 million a year.
3 min
In the high-octane world of international sport, homegrown Formula 1 star Oscar Piastri is big business. After a trailblazing 2025 season, Piastri is on track to be one of our most successful athletes ever. Almost certainly, he’ll be the richest.
The 24-year-old Melbourne-born driver inked a lucrative deal with McLaren reportedly worth US$41 million a year, making him Australia’s highest-paid athlete. Not bad for a Brighton boy who left home at 14.
Driving all the way to the bank
When Piastri lines up on the F1 grid at Melbourne’s Albert Park this year, the world’s eyes will be on him as he attempts to achieve what no other Australian driver has by winning the Australian Grand Prix. Football might have the most fans (an estimated 3.5 billion), but F1 still commands around 430 million devoted followers.
According to F1 owner, US giant Liberty Media, the motorsport generated a whopping US$3.65 billion in 2024. While some of that revenue comes from ticket sales, media rights account for roughly a third of the pie. These include broadcasting deals with television networks that know the adrenaline-charged drama of F1 racing translates into ratings-winning viewing.
Adding to the fascination is the Netflix docuseries “Formula 1: Drive to Survive,” which tracks the lives of drivers, managers, and team owners both on and off the circuit. The big screen joined the party in 2025 with F1: The Movie, starring Brad Pitt as an ageing driver attempting a comeback, which proved a hit with cinemagoers, grossing US$624 million (A$946 million) worldwide.
Much like Grand Slam tennis, which counts Rolex and Emirates among its sponsors, F1 attracts prestigious brands such as Louis Vuitton, Moët & Chandon and TAG Heuer. It’s no surprise F1 drivers can command enviable salaries.
At the end of Piastri’s second season with McLaren, in 2024, the Aussie is reported to have pocketed US$34.5 million, including a base pay of US$7.8 million plus US$26.7 million in bonuses. His current deal with McLaren will see him in the team’s famous papaya orange colours until at least 2028.
Piastri also benefits from team sponsors such as Mastercard, as well as personal deals with companies including Quad Lock, software group Dubber, burger chain Grill’d and his father Chris Piastri’s automotive software company HP Tuners.
Piastri is undoubtedly a champion in a cut-throat sport where split-second decision-making at more than 300 km/h can mean the difference between a chequered flag and crashing out. But it’s his future marketability and brand potential where the young driver could outshine his rivals.
It may not, however, be as simple as saying more wins equal more money, according to Hans Westerbeek, Professor of International Sport Business at Victoria University.
“In modern F1, the financial equation is far more complex,” Westerbeek says. “A driver’s value to a team and to sponsors isn’t just measured by podium finishes. It’s about their ability to generate global attention, connect with fans, and represent the brand values of their team and sponsors.”
In the age of “algorithmic fandom”, Westerbeek says digital engagement through social media matters just as much.
“A spectacular overtake that goes viral on TikTok may deliver more commercial value than a quiet second place,” he argues. “Teams and sponsors now monitor real-time sentiment data on how fans react online to every race weekend, and this affects negotiations and commercial deals.
“So, Oscar’s growth in earning potential depends on a combination of performance and digital visibility.”
When Piastri crashed out in the Azerbaijan Grand Prix in September, he was understandably deflated, telling Sky Sports F1 the race was “not my finest moment”. And yet Piastri’s first-lap exit drew most of the headlines, not rival Max Verstappen’s win.
“In many ways, F1 drivers are no longer just athletes; they’re content creators,” Westerbeek says. “An unexpected post-race interview that resonates globally might drive as much sponsor interest as a podium finish.
“The sport’s economics are shifting from pure sporting results to a hybrid model of performance plus digital storytelling.”
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The pandemic-fuelled love affair with casual footwear is fading, with Bank of America warning the downturn shows no sign of easing.
The pandemic-fuelled love affair with casual footwear is fading, with Bank of America warning the downturn shows no sign of easing.
2 minThe boom in casual footware ushered in by the pandemic has ended, a potential problem for companies such as Adidas that benefited from the shift to less formal clothing, Bank of America says.
The casual footwear business has been on the ropes since mid-2023 as people began returning to office.
Analyst Thierry Cota wrote that while most downcycles have lasted one to two years over the past two decades or so, the current one is different.
It “shows no sign of abating” and there is “no turning point in sight,” he said.
Adidas and Nike alone account for almost 60% of revenue in the casual footwear industry, Cota estimated, so the sector’s slower growth could be especially painful for them as opposed to brands that have a stronger performance-shoe segment. Adidas may just have it worse than Nike.
Cota downgraded Adidas stock to Underperform from Buy on Tuesday and slashed his target for the stock price to €160 (about $187) from €213. He doesn’t have a rating for Nike stock.
Shares of Adidas listed on the German stock exchange fell 4.5% Tuesday to €162.25. Nike stock was down 1.2%.
Adidas didn’t immediately respond to a request for comment.
Cota sees trouble for Adidas both in the short and long term.
Adidas’ lifestyle segment, which includes the Gazelles and Sambas brands, has been one of the company’s fastest-growing business, but there are signs growth is waning.
Lifestyle sales increased at a 10% annual pace in Adidas’ third quarter, down from 13% in the second quarter.
The analyst now predicts Adidas’ organic sales will grow by a 5% annual rate starting in 2027, down from his prior forecast of 7.5%.
The slower revenue growth will likewise weigh on profitability, Cota said, predicting that margins on earnings before interest and taxes will decline back toward the company’s long-term average after several quarters of outperforming. That could result in a cut to earnings per share.
Adidas stock had a rough 2025. Shares shed 33% in the past 12 months, weighed down by investor concerns over how tariffs, slowing demand, and increased competition would affect revenue growth.
Nike stock fell 9% throughout the period, reflecting both the company’s struggles with demand and optimism over a turnaround plan CEO Elliott Hill rolled out in late 2024.
Investors’ confidence has faded following Nike’s December earnings report, which suggested that a sustained recovery is still several quarters away. Just how many remains anyone’s guess.
But if Adidas’ challenges continue, as Cota believes they will, it could open up some space for Nike to claw back any market share it lost to its rival.
Investors should keep in mind, however, that the field has grown increasingly crowded in the past five years. Upstarts such as On Holding and Hoka also present a formidable challenge to the sector’s legacy brands.
Shares of On and Deckers Outdoor , Hoka’s parent company, fell 11% and 48%, respectively, in 2025, but analysts are upbeat about both companies’ fundamentals as the new year begins.
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