The Mercedes Formula 1 team may currently find itself in a challenging position in the constructors’ standings, but CEO and team principal Toto Wolff continues to see remarkable financial gains.
As of the latest estimate by Forbes, Wolff’s net worth has surged to $1.6 billion, a significant increase from the $1 billion reported in March. This growth is attributed to the increased valuation of the Mercedes F1 team, which is now estimated to be worth $3.8 billion. Forbes values the team based on ownership distribution, with Wolff, INEOS, and Mercedes’ parent company each holding a 33% stake.
This valuation marks a substantial rise from just over $1 billion when Liberty Media acquired the Formula 1 series in 2017 for $4.7 billion. The average value of F1’s ten teams has climbed to $1.88 billion, a 276% increase since 2019. Ferrari holds the top spot with a valuation of $3.9 billion, while the Williams team has the lowest valuation at $725 million.
Several factors contribute to the sport’s increased popularity, including the success of Netflix’s “Drive To Survive” docuseries, which debuted in 2019 and gained traction during the Covid-19 pandemic. The addition of new U.S. events, such as the upcoming Las Vegas Grand Prix in November, has also contributed to F1’s global appeal.
One of the most transformative influences has been the implementation of spending restrictions, known as the “cost cap,” by Formula 1 and the FIA. This cap limits teams’ spending to $135 million for equipment, engineering, and staffing in 2023, excluding driver salaries. The cost cap has compelled high-budget teams like Mercedes, Ferrari, and Red Bull to streamline their expenditures, making Mercedes’ F1 business highly profitable. Forbes projects the team to achieve revenues of $700 million and an operating income of $192 million in 2023.
Toto Wolff, an Austrian entrepreneur with a longstanding passion for motorsports, has played a pivotal role in Mercedes’ F1 success. Joining the team in 2013, Wolff’s leadership has led to eight constructors’ championships, seven driver titles, and 115 Grand Prix victories. Despite the financial success, Wolff remains focused on his ultimate goal: achieving victory on the race track. “I would give up every single penny of the profits to win,” he emphatically states.