First look at F1 2024 financials
Liberty Media and the Mercedes F1 team publish 2024 financials
The Mercedes F1 team released a strong set of 2024 financials last week a few days after George Russell’s victory and Kimi Antonelli’s podium in the Canadian Grand Prix in Montreal.
Liberty Media published its Formula One 2024 results in February which were relatively weak in comparison, attributed partly to problems around the Las Vegas Grand Prix.
Money in Sport reviews both sets of results and the outlook for Mercedes F1 in 2025.
The post closes with a look at Toto Wolff’s huge income streams as Team Principal & CEO of Mercedes F1 and 33.3% shareholder in Mercedes-Benz Grand Prix Limited.
Mercedes F1 results
Mercedes F1 posted strong turnover (revenues) for 2024, with 16.4% growth year-on-year.
The explanation provided in the accounts for the increase in turnover:
“This resulted primarily from higher commercial revenues from sponsorship and licensing, which accounted for over 60% of income in 2024.”
This is impressive considering the Mercedes F1 team performed relatively poorly on track in 2024, finishing in 4th place in the constructor standings:
It’s operating profit grew 41% in £ terms, and the operating margin improved to 25.3%:
Efficiency gains are contributing to the improved margins. Revenue increased by 16.4% in 2024 but the average number of employees only increased 2.6% to 1,323:
Liberty Media F1 results
Liberty Media’s revenues grew by +5.9% in 2024 vs 2023. However there were 2 more races in 2024 with 24 races in total vs 22 in 2023, i.e. + 9.1%. Revenue lines are mostly variable, such as race promoter fees, trackside sponsorship, shipment of cars and Paddock Club hospitality. Therefore the 5.9% revenue increase is seriously disappointing.
One issue flagged by Liberty Media in its 10-K is the Las Vegas Grand Prix which is the only race on the calendar which it promotes:
“Race promotion revenue increased during the year ended December 31, 2024, as compared to the prior year, due to two more Events held, contractual increases in fees and new fees from F1 Academy races, partially offset by lower revenue generated from the Las Vegas Grand Prix.”
“Other Formula 1 revenue decreased $8 million during the year ended December 31, 2024, as compared to the prior year, primarily due to lower hospitality revenue generated at the Las Vegas Grand Prix, partially offset by higher revenue from two more Events….”
Liberty’s operating profitability maintains a healthy upward trend in both $ terms and margins.
Payments to the F1 teams increased $51 million in 2024 to $1.27 billion:
Outlook for Mercedes F1 team financials
Lewis Hamilton’s departure to Ferrari will create a huge cost saving for Mercedes F1 in 2025. Hamilton was rumoured to be earning £50 million per season in the contract he signed in 2023 for the 2024-25 seasons. His replacement in the Mercedes driver line-up is Kimi Antonelli who is rumoured to be earning $2 million in his rookie season. George Russell's existing contract runs until the end of the 2025 season.
In February there were reports of a dispute with INEOS, a one-third shareholder in the Mercedes F1 team, over its sponsorship of the team. This was denied by the team but it is clear that almost all evidence of the INEOS sponsrship has been removed from the cars in 2025. This could indicate that the sponsorship has been renewed on much less favourable terms.
Research & Development costs can be expected to ramp up in 2025 ahead of the changes to FIA’s technical regulations for the 2026 season affecting the chassis, power unit and fuel.
The Mercedes F1 power unit is supplied by a 100% subsidiary of Mercedes-Benz Group, Mercedes AMG High Performance Powertrains Limited (‘HPP’). Currently HPP supplies PUs to the McLaren, Aston Martin and Williams teams as well as Mercedes-Benz Grand Prix Limited (‘GP’). A portion of the HPP R&D expense relates to its support of the AMG One road car project and and the electrification of Mercedes-Benz road vehicles.
Lastly, the poor performance of the Mercedes F1 team in the 2024 constructor standings means that its team payment income from Liberty Media will be reduced in 2025.
Toto Wolff’s income
Toto has two income streams from Mercedes-Benz Grand Prix Limited, i.e. his compensation as Team Principal & CEO and dividends from his 33.3% shareholding in the team.
Details of his compensation package are not available. The chart above suggests that there is a linkage to the team’s on-track performance resulting in a reduction in his compensation in 2024 even though the company’s financial performance was outstanding for that year. (The team finished third in the constructor standings in 2022, second in 2023 and fourth in 2024.)
Total dividends paid by Mercedes Grand Prix have increased significantly since its equity was restructured in January 2022:
Toto’s one-third share of these dividends amounted to £18.3 million in 2022, £25 million in 2023 and £33.3 million in 2024….a total of £76.7 million.
Recap: How does Mercedes stack up against the other teams?
We won’t have the 2024 comparisons until the last quarter of 2025 when all the F1 team financials are available.
Money in Sport’s post from November 2024 showed that the Mercedes team had the largest F1 turnover in 2023 of the 8 teams which publish results:
Ferrari is one of the largest F1 teams but does not publish separate financials for its team. Therefore it’s not possible to confirm 100% that Mercedes is the largest team in turnover terms. (Sauber is the other team which does not publish financials).