To acquire the enterprise value of the 10 groups in Formula 1, Sportico calculated each player’s revenue, relying on publicly available financial comments from monthly accounts, Companies House, the UK’s secretary of companies, and the Italian Business Register. In situations where more in-depth data was not applicable, we used our own quotes. We spoke with activities bankers, attorneys, and owners who have looked at F1 team in discussions with those who are familiar with staff finances. We traded honesty for privacy. Many teams and experts in the field reviewed this information.
Online of value added and other sales income, the total group profits are displayed. Endorsements and prize money distribution from Formula 1 make up the two primary revenue streams. Profits before interest and fees are what constitutes a profit. All revenue and profit images are displayed in U. S. money using the common everyday exchange rate during the 2023 fiscal time: £1 =$ 1.24 for U. K. groups and €1 =$ 1.08 for teams in Europe.

For title sponsorships like Oracle ( Red Bull ) and Petronas ( Mercedes ), the majority of teams have at least two dozen sponsor partners with annual deals that can be as high as$ 60,000 per year. With the expansion of the game, funding revenue has increased for some groups recently. At Aston Martin, it has increased 1, 000 % since Lawrence Stroll bought the team in 2018.
Formula 1 makes money from contest promotion charges, media rights, funding fees, and secondary sources, such as Paddock Club solution sales and delivery vehicles and products outside of Europe. The International Automobile Federation ( FIA ), Formula 1 Group, and F1 teams are required to pay a portion of this revenue, which will be distributed to them in the Concorde Agreement, which is their contract. The most recent partnership, which dates back to 2021 and 2025, was signed in 2020. The second Plane Agreement to be signed while F1 was owned by Liberty Media.
The 10 teams shared total prize money payments of$ 1.22 billion in 2023, up from$ 1.16 billion the prior year. The solution 1 distributions take into account both the current year’s profits and the previous year’s finish by track teams in the Constructor standings. More obligations are available to award-winning teams and those that finished in the top three in the previous ten years. Due to its long history in the sport, Ferrari receives an extra benefit that can reach the tens of millions of dollars.

When the Concorde Agreement was signed in 2020, Chase Carey, the then-Formula 1 CEO, stated,” Scuderia Ferrari and Formula 1 have been working together since 1950, and we are glad that this relationship is going to last a long time.”
Teams generate more profits from licensing, products and related company, such as Mercedes ‘ Applied Sciences division. that expanded its architectural skills to clients like the America’s Cup-winning sailing team INEOS Britannia, which launched in 2019.
Income numbers were subject to a team-specific ratio, which remains the standard measurement for valuing sports clubs in purchases. Before cost caps were introduced in 2021, earnings can fluctuate significantly from year to year, and the majority of F1 teams had negative cash flows.
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. On average, there were just over six revenue multiples.
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.