Mercedes F1 Team’s Net Worth and Rise
The value of Formula 1 teams has seen a remarkable increase in recent years, with the average value of teams now standing at $1.8 billion. This represents a 276% growth from the $500 million average in 2019, according to Forbes. This substantial rise is largely attributed to the implementation of the $145 million cost cap in 2021, which limits how much money teams can spend on car development throughout the season. Prior to this, teams were spending over $400 million annually, which was often difficult to recoup. Since the cap, teams now generate around $600 million in earnings before interest, taxes, depreciation, and amortization.
Mercedes’ Financial Success in Formula 1
Mercedes is currently valued at $3.8 billion, securing its position as the second most valuable F1 team. This figure highlights the German team’s financial success, driven by a combination of performance, strategic sponsorships, and growing global appeal. Mercedes’ impressive valuation is reflective of its consistent presence at the top of the Formula 1 standings and its ability to attract lucrative partnerships. With the introduction of the cost cap, Mercedes has been able to streamline its expenses while continuing to secure strong revenues from sponsorship deals and prize money.
In addition to the cost cap, Formula 1’s increased popularity, fueled by the global expansion of the sport and the success of the Drive to Survive Netflix series, has also contributed to the increase in Mercedes’ valuation. The addition of races in the U.S. in 2023, including those in Miami, Austin, and Las Vegas, has further amplified the sport’s presence, leading to new commercial opportunities for Mercedes.
The Most Valuable F1 Teams in 2023
- Ferrari: $3.9 billion
- Mercedes: $3.8 billion
- Red Bull Racing: $2.6 billion
- McLaren: $2.2 billion
- Alpine: $1.4 billion
Mercedes’ $3.8 billion valuation places it among the top teams in F1, solidifying its financial and competitive strength as the team continues to be a dominant force both on and off the track.
