Good morning. If F1 has suddenly appeared on your radar over the past few years, it’s due to a few factors: Liberty Media, team CEOs like McLaren Racing’s Zak Brown, consumer shifts, and the increasing role that sports play in corporate marketing. Liberty Media acquired Formula 1 racing from a consortium of investors in 2017 at a valuation of $8 billion and has since tripled that value through partnering to create U.S. races, Netflix’s Formula 1: Drive to Survive series, an F1 movie, the F1 Academy woman’s circuit, fashion, influencer marketing and broadcast reach that will further expand with an Apple partnership next year.

“We were a very exclusive sport, ‘look, don’t touch,’ and Liberty brought a new way of thinking,” Brown said in the latest Fortune Leadership Next podcast. “We figured out how to let people in the tent to engage with the sport”—be it the drivers, the team, the technology, the drama off the grid or the idiosyncrasies of the sport itself.

At the Formula 1 Heineken Las Vegas Grand Prix this weekend, I saw evidence of both the democratization of the sport and the move to a two-tiered experience economy in which brands tailor special packages for the top. LVMH is now F1’s global luxury partner and many individuals I met had flown in from across the world and paid thousands of dollars to see the race from the Paddock Club and suites like House 44, F1’s collaboration with Ferrari driver Lewis Hamilton and Soho House. High-end American Express cardholders could sample ‘The Only Caviar’ with co-founders Breaking Bad star Aaron Paul and Michelin-star chef Diego Sabino at the Aria resort. At the same time, more mainstream consumer brands are also backing F1, like PepsiCo, LEGO, Disney, and Hello Kitty.

The 10-team sport generated more than $2 billion in direct sponsorships last year and is accelerating in value; top F1 teams are worth more than most NBA franchises and European soccer clubs. Exhibit A: Mercedes team principal and part-owner Toto Wolff’s deal last week to sell a 15% stake to CrowdStrike CEO George Kurtz, which values the team at $6 billion.

McLaren, meanwhile, has gone from facing insolvency five years ago to making a profit of $61 million last year, with more to come, thanks to a new sponsorship deal with Mastercard that will reportedly bring in around $100 million a year. But the ultimate measure of performance is still on the track. McLaren saw drivers Lando Norris and Oscar Piastri get disqualified after placing second and fourth in the Vegas Grand Prix because officials found both cars had technical infringements. That’s heartbreaking for McLaren and makes for good TV in a season in which Brown’s team has already secured the top place but individual drivers are still battling for first. As Brown put it on the podcast: “We’re in the sports and entertainment business.” Click here to listen to the podcast on Apple or Spotify.

Contact CEO Daily via Diane Brady at [email protected]

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