Toto Wolff, the current owner of a 33 percent stake in the Mercedes Formula 1 team, is reportedly in talks to sell a portion of his ownership to an external investor. The potential deal may involve selling between five and 10 percent of the team, estimating the team’s value at around £4.5 billion and potentially earning Wolff a substantial nine-figure sum.
Despite the ownership restructuring discussions, Wolff is expected to retain all his current positions within the team. A Mercedes spokesperson confirmed that there will be no changes in the team’s management structure moving forward.
The existing ownership structure of the team is evenly distributed among Wolff, the Mercedes-Benz Group, and INEOS, a petrochemicals company owned by Sir Jim Ratcliffe. While all partners remain committed to the team’s success, details regarding the potential equity shift were not disclosed by the spokesperson.
The reported transaction, as initially covered by Sportico, would establish a new benchmark in F1 team valuations. Notably, McLaren, valued at over £3 billion following recent ownership changes, experienced a surge in valuation under new ownership arrangements.
The rise in F1 team valuations across the board can be attributed to the sport’s expanding global viewership, largely driven by initiatives to engage wider audiences. The popular Netflix series “Formula 1: Drive to Survive” played a pivotal role in attracting new fans, particularly in the USA, where three races are now hosted annually.
Sky’s enhanced broadcasting packages now include a comprehensive selection of streaming services and channels, offering extensive coverage of Formula 1 alongside other sports events like the Premier League and golf tournaments.
INEOS’s previous investment in the Mercedes F1 team in early 2022, amounting to around £200 million for a third of the team, marked the beginning of a significant valuation increase. With Wolff’s proposed stake sale, the team’s value is expected to skyrocket by 650 percent in less than four years.
Even less successful F1 teams are benefiting from the sport’s surging popularity, as evidenced by the increased interest in purchasing teams like Haas F1 for substantial amounts exceeding £1 billion. American businessman Gene Haas reportedly turned down multiple offers above the billion-pound mark for his team in recent times.