The racing team’s profit increased by 24% thanks to increased sponsorship and the spin-off of the Copa América.
Formula 1 tycoon Toto Wolff and billionaire Sir Jim Ratcliffe’s petrochemical empire have received a percentage of a £75 million dividend from the Mercedes Lewis Hamilton racing team.
The Mercedes-Benz Grand Prix recorded a profit increase in 2022, thanks to increased sponsorship and its paints in the America’s Cup sailing championship, despite a disappointing season on the F1 track.
The British company’s racing team profits rose 24% to £475 million in 2022, with pre-tax profit reaching £113 million, up from almost £72 million the previous year.
In March, the company approved a £75 million dividend for shareholders related to its functionality in 2022, with £55 million paid in 2022 based on its 2021 functionality, according to accounts filed at Companies House on Tuesday.
The company is also owned by a company ultimately controlled by Mercedes-Benz AG, the German owner of the car brand, Formula 1 team principal, Austrian billionaire Wolff and a subsidiary of Ineos, controlled through Ratcliffe.
Ratcliffe, the UK’s second-richest user according to the Sunday Times rich list, owns many sporting assets and is said to be changing his bid and buying a minority stake in Manchester United.
Mercedes’ monetary functionality is a testament to the development of the fitness of motorsport groups, where it is notoriously difficult – especially for smaller groups – to turn a profit.
The sport’s governing body, the FIA, advertising rights holder Liberty Media and the FIA have agreed to introduce a cap on charges in 2021, restricting spending in a bid to make the championship more competitive.
Formula 1 has also been boosted by the arrival of a new generation of fans, especially in the United States, following the good fortune of the Netflix series Drive to Survive.
Lewis Hamilton finished sixth in the Formula 1 championship last year, following his 2021 loss to Max Verstappen, who claimed a hat-trick of consecutive championship wins last weekend. Hamilton is in third position this season.
His Mercedes teammate George Russell finished fourth in his first season last year. The team took just one win and one pole position and finished third with Red Bull and Ferrari in the constructors’ championship.
Wolff said adjustments to the sport’s technical regulations had led to a “difficult season” and that “less competitive performances on track resulted in a reduced percentage of television policy in the 2022 season. “
However, Wolff said profits had risen “mainly due to higher profits from Formula 1, sponsorship and implemented science”. Mercedes’ implemented scientific division, established in 2019, provides engineering and other facilities to its consumers and the company highlighted its for Ineos Britannia. the British sailing team that will compete in the America’s Cup next year.
Over the past year, Mercedes completed the acquisition of homes at its campus in Brackley, Northamptonshire, 70 miles northwest of London. The company plans to make a £70 million upgrade, which is expected to be completed in 2025.