Toto Wolff, the current owner of 33% of the Mercedes Formula 1 team and also serving as the team’s chief executive and principal, is reportedly in the final stages of negotiating the sale of a portion of his ownership stake to an external investor. Sources indicate that Wolff is contemplating selling between five and 10 percent of the team, potentially resulting in a valuation of approximately £4.5 billion and a substantial nine-figure payout for Wolff.
Despite the potential ownership adjustment, Wolff is expected to retain all his current responsibilities within the team. A representative from Mercedes affirmed that the team’s governance structure will remain unaltered. However, there was no official comment provided regarding the specifics of the ownership restructuring, which presently involves equal shares held by Wolff, the Mercedes-Benz Group, and INEOS, the petrochemicals company owned by Sir Jim Ratcliffe.
The proposed deal, initially disclosed by Sportico, would establish a new record valuation for an F1 team. For instance, McLaren, recent winners of consecutive constructors’ titles, were valued above £3 billion when Bahrain’s sovereign wealth fund Mumtalakat acquired full ownership in September, along with Emirati investment group CYVN Holdings.
The rising value of F1 teams in recent years can be attributed to the sport’s expanding global audience. Notably, the Formula 1: Drive to Survive series on Netflix, which gained immense popularity during the initial Covid lockdown in 2020, is credited with attracting a broader viewership, particularly in the USA. This surge in interest has led to the addition of three annual races in the United States, held in Miami, Austin, and Las Vegas.
Sky has enhanced its Ultimate TV and Sky Sports package to include a variety of streaming services like HBO Max, Netflix, Disney+, and more, alongside extensive coverage of Formula 1 and other sports events. INEOS acquired a third of the Mercedes F1 team for around £200 million in early 2022, with the potential stake sale by Wolff indicating a remarkable 650% valuation surge in less than four years.
Furthermore, the heightened interest in F1 has benefitted even less successful teams, as seen with American entrepreneur Gene Haas rejecting offers surpassing £1 billion for his eponymous team in the past year.