To derive the enterprise value of the 10 teams in Formula 1, Sportico calculated each team’s revenue, relying on publicly available financial statements from annual reports; Businesses House, the UK’s secretary of companies; and the Italian Business Register. We used our personal projections in cases where detailed data was not available. We conducted interviews with those experienced of team funds, including sporting bankers, lawyers and investors who have looked at F1 teams. We traded sincerity for privacy. This knowledge was vetted by several groups and industry experts. Full group profits are displayed shield of worth added and other income taxes. Income streams consist of two principal buckets: sponsorships and prize income distribution from Formula 1. Running profit represents revenue before interest and fees. All revenue and profit images are displayed in U. S. money using the typical daily exchange price during the 2023 governmental year: £1 =$ 1. 24 for U. K. clubs and €1 =$ 1. 08 for teams in Europe. Most teams have at least two dozen sponsorship partners with annual deal values that can range anywhere from$ 1 million to more than$ 60 million a year for title sponsorships like Oracle ( Red Bull ) and Petronas ( Mercedes ). Funding revenue has soared for particular groups in recent years with the development of the sport. At Aston Martin, it has increased 1,000 % since Lawrence Stroll bought the team in 2018. Formula 1 generates revenue from competition advertising costs, media rights, funding fees and secondary sources, such as Paddock Club solution sales and delivery cars and products outside of Europe. It distributes a portion of this revenue—38 % in 2023—to the teams based on a formula in the Concorde Agreement, which is the contract between the International Automobile Federation ( FIA ), Formula 1 Group and F1 teams that governs the sport. The most recent agreement was signed in 2020 and covers the times between 2021 and 2025. It was the first Concorde Agreement signed under Liberty Media’s possession of F1. The 10 team shared complete prize money bills of$ 1. 22 billion in 2023, up from$ 1. 16 billion the previous month. The distribution consider the preceding year end by teams on the trail in the Constructor status, as well as the present time income of Formula 1. Title-winning groups and clubs that finished in the top three over the past century are available for additional payments. Ferrari gets an extra benefit that runs into the tens of millions of dollars because of its historic status in the game. “Scuderia Ferrari and Formula 1 have gone hand in hand since 1950, and we are glad that this marriage is set to continue for a long time, as it is part of the very DNA of this sport, ” Chase Carey, then-Formula 1 CEO, said when the Concorde Agreement was signed in 2020. Groups generate additional income from licensing, products and related business, such as Mercedes ’ Applied Sciences section. That launched in 2019 to utilize its engineering experience for users such as the INEOS Britannia flying team, which tribes in the America’s Cup contest. Income numbers were subject to a team-specific ratio, which remains the standard measurement for valuing sporting teams in purchases. Earnings can have dramatic fluctuations from year to year, and most F1 teams had negative cash flow before the introduction of cost caps in 2021. The team-specific multipliers were based on multiple factors, including historical sales, strength of brand, on-track performance ( historical and recent ) and infrastructure, as well as expected future team and F1 economics. Revenue multiples averaged just over six. Values for teams were converted to U. S. dollars based on the Nov. 22 exchange rates of £1 =$ 1. 25 for U. K. teams and €1 =$ 1. 04 for those based in continental Europe.