Toto Wolff is reportedly in discussions to divest a portion of his ownership stake in the Mercedes Formula 1 team. Wolff, who currently holds a 33 percent stake in the team and serves as its chief executive and team principal, is close to finalizing a deal to sell a small fraction of his shares to an external investor.
Sources indicate that Wolff is in negotiations to sell between five and 10 percent of the team, potentially valuing the F1 outfit at approximately £4.5 billion. If the transaction goes ahead, Wolff stands to gain a substantial nine-figure sum while retaining all his current responsibilities within the team. A Mercedes spokesperson confirmed that there would be no changes to the team’s management structure.
While the specifics of the ownership restructuring were not disclosed by Mercedes, the team’s ownership is presently evenly distributed among Wolff, the Mercedes-Benz Group, and INEOS, the petrochemicals company owned by Sir Jim Ratcliffe. The team spokesperson emphasized the commitment of all three partners to the ongoing success of Mercedes-Benz in Formula 1.
Reported by Sportico, the proposed deal would establish a new record valuation for an F1 team. For instance, McLaren, which secured consecutive constructors’ titles in recent seasons, was valued at over £3 billion following the complete acquisition by Bahrain’s sovereign wealth fund Mumtalakat and Emirati investment group CYVN Holdings.
The escalating value of F1 teams is attributed to the sport’s expanding global viewership, primarily driven by initiatives such as the popular Netflix series, Formula 1: Drive to Survive. This series, which gained significant traction during the initial Covid lockdown in 2020, is credited with attracting a broader audience, particularly in the USA, where three races are now hosted annually.
Sky has enhanced its Ultimate TV and Sky Sports bundle to include a plethora of streaming services and channels, offering extensive Formula 1 coverage alongside other sports events. The broadcaster airs every practice session, qualifying round, and race throughout the F1 season, as well as exclusive coverage of various sports leagues and tournaments.
In January 2022, INEOS acquired a third of the Mercedes F1 team for approximately £200 million. Should Wolff proceed with the sale of part of his stake, the team’s valuation would see a remarkable 650 percent surge within a span of less than four years.
Even less successful F1 teams are capitalizing on the heightened interest in the sport. For example, reports suggest that Gene Haas, the American businessman behind the Haas F1 team, has turned down several lucrative offers exceeding £1 billion for his team in the past year.