Mercedes maintains pole position in income: first team to exceed US$642 million

Mercedes leads the economic classification of Formula 1. After the end of a sporting hegemony that gave it seven consecutive drivers’ world championships, the British team has now gone more than two seasons without crossing the checkered flag of a race in first position. Despite this, it remains the most lucrative in the grill and was erected in the first to overcome the US$600 million barrier.

The silver arrows structure increased its turnover by 15% year-on-year, going from US$593.39 million to US$731.45 million between 2022 and 2023according to data analyzed by 2Playbook Intelligence, the data and market intelligence unit of 2Playbook.

The team leads in revenue, only closely followed by Ferrari. The team of The Prancing Horseand also increased its turnover by 15% to US$612 million in the last fiscal year. Now, in his case he refers to the data of the commercial division in which his Formula 1 team and his amusement parks such as PortAventura are included.

Mercedes recruited one of its new sponsors from the Italian team for the 2023 season: Snapdragon. In fact, the increase in turnover It is mainly attributed to the boom in the commercial business thanks to the incorporation of up to seven new sponsors. The contract of the Qualcomm group brand is unknown, but at Ferrari his contribution was estimated at US$25 million.

G42, a company specialized in artificial intelligence based in the United Arab Emirates, also joined. However, The increase in sponsorship income came thanks to the renewal of Petronas as title sponsor until beyond 2026 for a total of 80 million euros annually. The main developments in 2024 have been the incorporation of WhatsAppin what represents its first agreement in the sports industry, and the departure of Monster, which joined the pool from McLaren sponsors.

The contracts, yes, were sealed before they were known. the future departure of seven-time world champion Lewis Hamilton, its main commercial hook. It is still unknown who will be his replacement next season, although among the names being considered is that of the Spanish driver Carlos Sainz.

Although sponsorship income is the teams’ main source of income, Mercedes has been able to find new sources of financing with which to reduce its dependence on brands. This item includes its division of Applied Sciences specialized in aerodynamics projects and that serves the Ineos Britannia team of the America’s Cup sailing. This project alone provided them with US$17.8 million (14.3 million pounds) in 2023.

Likewise, the team also introduced a offer of hospitality specific for the Las Vegas Grand Prix “to serve the growing demand for VIP spectators as Formula 1 grows globally,” as the team points out in its accounts.

Nor can the resources obtained by performance be disregarded, depending on their classification in the Constructors’ World Championship. The second position of the 2023 season brought him US$131 million.

Brackley’s renewal

Mercedes is by far the most profitable team in Formula 1. Even so, the team, whose capital is divided equally between Ineos, Daimler AG and its leader, Toto Wolff, It reduced its profits by 6.5% in 2023, to $104.7 million (£83.8 million). A result that remains light years ahead of its main pursuers.

This slight drop can be attributed to the implementation of the investment plan designed to undertake the renovation of its factory in Brackley (United Kingdom). This project, started in 2024, includes the creation of a pedestrian environment, as well as the construction of new buildings for marketing, leisure facilities and restaurants for employees. The objective is to turn the space into the closest thing to an autonomous town, as explained by its CEO, Toto Wolff. For this he has committed around US$107 million.

Added to this is an increase in costs of 19.9% ​​year-on-year, as a result of the increase in both administrative and personnel expenses. In fact, staff costs shot up 35% to $158.6 million (£126.9 million). In this period, Mercedes increased the number of employees by 114 people, thus bringing its total workforce to 1,289 workers.

Furthermore, in 2023 certified the renewal of Toto Wolff at least until the 2026 seasonas well as with the technical director James Alison, with a long-term contract that ensures he will lead the construction of the car from the entry into force of the new regulations.