Formula 1 isn’t just about speed and talent; it’s also a massive business. Factors such as sponsorships, merchandise, and prize money add to the wealth of F1 teams. Here are the five-richest Formula 1 teams, including legendary Ferrari, and what makes them so financially successful.
5. Alpine : $1.4 billion
With a value of $1.4 billion in 2023, according to Forbes, Alpine is now the fifth-richest Formula 1 team. Renault, its parent company, has a long history in F1. Alpine’s infrastructure and marketing have received further investments, which enhances its profile and overall value. This led to $325 million in revenue for 2023.
Several factors contribute to Alpine’s value. Investment by a high-profile syndicate that includes Ryan Reynolds, Rob McElhenney, and Michael B. Jordan is one of the key reasons. Earlier in 2023, this group took a 24% stake in the team. Notably, the team has also received additional investors including boxer Anthony Joshua, golfer Rory McIlroy, and the Kansas City Chiefs’ Patrick Mahomes and Travis Kelce, which increased the team’s value.
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4. McLaren : $2.2 billion
McLaren is Formula 1’s fourth-richest team, valued at $2.2 billion. The team’s wealth stems from its long and rich F1 history that stretches all the way back to 1966. Also, the company continues to grow through major sponsorship deals with brands like Dell, Coca-Cola, and Gulf Oil. In addition, McLaren partnered up with automotive and tech ventures to increase its overall financial stability.
While McLaren has faced recent track challenges, these various income sources let it hold its prestigious standing. McLaren’s brand has remained so widely appealing around the world that the team has continued to be an attractive candidate for sponsorships and investors.
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3. Red Bull : $2.6 billion
Third in Formula 1’s richest teams list is Red Bull Racing, worth $2.6 billion. Its wealth comes from the sales of its global energy drink sales, prize money earned from on-track success, and sponsorships. However, the team grew its revenue significantly in 2023, increasing it to $402 million because of its dominant performance.
Red Bull’s financial strength was further cemented by its record-breaking season with Max Verstappen’s 19 wins out of 22 races, and his teammate Sergio Pérez adding two more. Also, alongside its own strategic sponsorships with Hard Rock, it solidified Red Bull’s financial position.
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2. Mercedes : $3.8 billion
Mercedes ranks as the second-richest Formula 1 team with an estimated value of around $3.8 billion. Several key factors play a large part in its success. The first thing that benefits Mercedes is lucrative sponsorships, such as long-term partnerships with companies like Petronas and INEOS. These partnerships improve the financial strength of the team greatly. This means Mercedes remains at the forefront of car development and recruiting top-tier drivers.
The F1 prize fund is another major source of income. Each season, Mercedes always ranks as one of the top teams and collects huge rewards. This translates to more resources for car improvements and technology. Mercedes also has its Applied Science division which diversifies its revenue. With research outside Formula 1, it invests in new industries and thus widens its technological scope.
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1. Ferrari : $3.9 billion
Ferrari, the most valuable Formula 1 team, is worth $3.9 billion. This financial strength is sourced from several fronts. First of all, Ferrari earns big dollars in sponsorships from companies like Shell and Santander. Under a “Long Standing Teams” agreement, they also get special bonus payments because of their historical importance. Ferrari is able to make more money than some championship-winning teams. Moreover, through contracts that see Ferrari as an engine supplier to Haas and Alfa Romeo, the Italian team makes extra money. Together, these factors ensure that Ferrari remains in the top financial position in the sport.
Lewis Hamilton’s news that he would join Ferrari in 2025 also caused a massive F1 stock surge. It sent Ferrari’s stock price leaping 7%, which equates to a rise of about $7 billion to its market cap. The jump is proof of the huge brand and financial value that Hamilton adds to the team. His move is ranked among the most impactful in recent F1 history.
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