Reports indicate that Toto Wolff, the current chief executive and team principal of the Mercedes Formula 1 team, is in discussions to divest a portion of his 33% ownership stake in the team to an external investor. The potential sale, estimated to be between five and 10 percent, could value the team at approximately £4.5 billion, resulting in a substantial nine-figure payout for Wolff.
Despite the proposed transaction, Wolff is expected to maintain his existing roles within the team, as confirmed by a Mercedes spokesperson who assured that the team’s governance structure would remain unchanged.
While the specifics of the ownership adjustment have not been disclosed, the current ownership structure distributes ownership equally among Wolff, the Mercedes-Benz Group, and INEOS, the petrochemicals company owned by Sir Jim Ratcliffe.
The potential deal, as first reported by Sportico, could establish a new benchmark for F1 team valuations. Notably, McLaren, another prominent F1 team, was valued at over £3 billion following a recent ownership transfer to Bahrain’s sovereign wealth fund Mumtalakat and Emirati investment group CYVN Holdings.
In recent years, the increasing global viewership of Formula 1 has significantly elevated the value of all F1 teams. The success of the Formula 1: Drive to Survive series on Netflix, particularly during the Covid lockdown, has played a pivotal role in attracting new audiences, especially in the United States where three races are now held annually.
Furthermore, Sky’s enhanced TV and sports bundle now includes various streaming services like HBO Max, Netflix, Disney+, and others, alongside comprehensive coverage of Formula 1 races and other sporting events.
INEOS acquired a third of the Mercedes F1 team for approximately £200 million in January 2022. If Wolff’s proposed stake sale goes through, the team’s value could see a remarkable 650% surge in less than four years.
The heightened interest in Formula 1 has also benefited less successful teams, with reports indicating that Haas F1, owned by Gene Haas, has turned down offers exceeding £1 billion for the team in the past year.