Toto Wolff says Mercedes F1 team generates around $1 billion in revenue with 30% profit margin
Mercedes F1 team principal and co-owner Toto Wolff spoke candidly about the team's finances on the Cheeky Pint podcast, saying the squad generates roughly $1 billion in annual revenue and an EBIT margin above 30%, translating to approximately $300 million in operating profit. Wolff credited the FIA's cost cap, introduced in 2021 with a baseline spending limit of around $135 million, with ending the era of runaway expenditure and allowing sponsor revenue to convert into real profit. UK corporate filings for the 2025 fiscal year reportedly corroborate his claims, showing Mercedes pulled in over £633 million in revenue and paid out £125 million in dividends to its three owners: Wolff, INEOS, and Mercedes-Benz. Wolff also referenced a recent transaction that valued the team above $4.6 billion, and suggested the valuation could grow by roughly 30% further.
We're generating around a billion dollars in revenue and 30% profit margin… 300 million of EBIT,
Why it matters
For service providers: The profitability figures and rising franchise valuations underscore the financial upside of securing NIL or sponsorship deals inside elite motorsport properties.
For brands: Sponsors and prospective investors can see that F1 team financials are now auditable and highly profitable, making the sport a more attractive and credible commercial partner.
Read the full story at Yahoo Sports
Sources
- Yahoo Sports: Toto Wolff Explains How the Cost Cap Turned Mercedes Into a Billion-Dollar Cash Cow