Formula 1 is an expensive, exclusive and – to the likes of Andretti, at least for the time being – an elusive club.
You think F1 teams, you think money – and why wouldn’t you? Global recognition, blue-chip sponsors, luxury brands and home to the fastest drivers on the planet… it must all add up. But do all of those assets equate to cold, hard cash?
The Dallas Cowboys have just become the first team in history to top a worth in excess of $10billion, with the NFL home to several other franchises who come close to passing the same mark.
To put that into context, its value of $10.32bn could get you Ferrari, Mercedes and Red Bull and still leave over £2million spare.
All F1 teams now turn a profit, regardless of their position in the pitlane, and that is a tell-tale sign that the series is in rude health – gone are the days of the backmarkers’ begging bowls, with values on the rise across the grid.
Take Williams as a fine case in point, the once family-run team was sold to US investment firm Dorilton Capital in 2020 during a run of three successive seasons in which it finished bottom of the constructors’ championship.
The fee commanded to complete the deal was $200m, whereas today’s estimated valuations put Williams around the $725m mark – despite little improvement in on-track displays.
However, results are not a sure-fire way to boost the worth of a team; sporting success is not a prerequisite for business performance.
Matthew Savage, Chairman, Dorilton Capital, Paul Asencio, Chief Revenue Officer, Williams Racing
Photo by: Mark Sutton / Motorsport Images
The aforementioned Dallas Cowboys have not reached the NFC Championship Game in 28 years, and the last time they won the Superbowl, Michael Schumacher had just defended his drivers’ world championship with Benetton.
On average, annual revenue for an F1 team has increased almost threefold since 2018, and the rise in popularity of the championship has also seen a clamour from companies and corporations to get their brand emblazoned on cars and overalls, with new sponsorship deals seemingly announced on a weekly basis.
Speaking to the James Allen on F1 podcast, Liberty Media chief executive officer Greg Maffei said he didn’t expect the bubble to burst any time soon.
“People raise capital, Aston Martin recently did a raise that was substantially higher than the numbers we were discussing there,” Maffei replied when asked if he felt the value of an F1…
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