Scuderia named most valuable Formula 1 team

The publication Sportico (owned by Penske Media Corporation) has compiled its rating of the cost of Formula 1 teams. The most expensive, as the calculations showed, was Ferrari, despite the fact that the last time its racer became the world champion fifteen years ago. The strength of the Scuderia brand is such that it has been valued at an impressive $3.13 billion. In second place, by a solid margin, is Mercedes, and only in third is the current hegemon of the Red Bull series.

Edition Sportico presented a ranking of the cost of all ten Formula 1 teams. When compiling it, the authors of the study took into account a number of parameters. The teams’ revenues were estimated based on the information they provide to the British and Italian regulators (eight teams in the series are based in the UK, one each in Italy and Switzerland). In cases where there was no open data, Sportico used its own estimates, and also took into account information obtained in the course of working with various sources: bankers, lawyers, investors who are aware of the developments in the world of motorsport.

“We traded frankness for anonymity,” the authors of the study say, insisting that the findings were cross-checked.

It is also noted that all estimates for easier perception by the public are given in US dollars, but teams often do business in either British pounds or euros. So the accuracy of the information to some extent could be affected by the need to convert from other currencies to dollars.

The report notes that one of the key, and perhaps already the largest source of income for the teams was the proceeds from sponsorship contracts. Most teams have at least a dozen promotional deals, valued at a very wide range of prices, from a few hundred thousand dollars a year to $60 million a season, as in the case of partnerships between Oracle and Red Bull or Petronas and Mercedes. Even such an outsider of the series as Haas receives a solid $ 25 million a year from its title sponsor MoneyGram. Sportico also notes that individual teams are showing amazing growth in sponsorship revenue. For example, Aston Martin, after the Canadian entrepreneur Lawrence Stroll bought the team in 2018, increased sponsorship income tenfold, to $ 220 million, standing on a par with the top stables. By the way, Aston Martin is doing well in terms of sports – in the current championship, the team is third in the Constructors’ Championship and has a good chance of pushing Mercedes out of second place.

An equally important source of income for the teams is royalties from the owners of the commercial rights of the series – Liberty Media.

According to the agreements, 45% of the income generated by the championship should go to the teams, and in 2022 this amount was $1.16 billion. By the way, this is $90 million more than a year earlier. That is, the business is growing.

However, when assessing the cost of teams, not only their current financial indicators were taken into account. They may well distort the picture, since on paper the financial situation of the teams is subject to significant fluctuations, but in reality, most of them do not experience problems with money. So Sportico tried to make estimates based on longer segments (which is not explained), as well as take into account such subtle matters as the strength of the brand, past achievements (both in business and on the track), the quality of the existing infrastructure (base, plant, etc.) and even forecasts for the future of the teams.

As a result, it turned out that the most expensive is Ferrari. On the one hand, this is indeed the most famous and popular Formula 1 team, so it is not surprising that the Scuderia was valued at an impressive $3.13 billion (team revenues in 2022 are estimated at $504 million, profits at $50). million), probably not. On the other hand, the last time a Ferrari driver became world champion was back in 2007, when Kimi Raikkonen excelled.

For a decade and a half, a generation has already grown up that has never seen the champion Scuderia, for which Mercedes or Red Bull are much better associated with titles.

Nevertheless, the German team, which for eight years (2014-2021) did not give up the Constructors’ Championship, and its riders won the World Championship seven times in this segment, is only the second. Mercedes is valued at $2.7 billion, with revenues of $524 million and profits of $114 million, the best in the series. Third on the Sportico list is Red Bull. In terms of technical level, the Bulls are head and shoulders above everyone else for the second year in a row, and only a miracle can prevent Max Verstappen from becoming world champion for the third time. Red Bull is valued at $2.42 billion (revenue – $395 million, profit – $4 million).

This is followed by a group of teams valued in the range from $1 billion to $1.6 billion. In fourth place is McLaren – $1.56 billion ($358 million in income and a loss of $8 million), in fifth is Aston Martin – $1.14 billion ($247 million in income, $ 55 million loss), on the sixth Alpine – $ 1.08 billion ($ 261 million in revenue, $ 35 million in profit). At the bottom of the table, Red Bull affiliate Alpha Tauri leads with $905 million on $179 million in revenue and $8 million in profit. Alfa Romeo is in eighth place with $815 million ($179 million in revenue, $8 million in profit), and Williams is in ninth place. The legendary team is now worth only $795 million, with $154 million in revenue and a $12 million loss. And last but not least, Haas. The team is valued at $710 million, its revenue was $173 million, and its profit was $6 million.

Alexander Petrov