The Mercedes Formula 1 team has now entered the elite group of the world’s most valuable sports organisations, reaching an estimated $6 billion valuation after Toto Wolff finalised a major share sale. The Mercedes team principal believes the sport’s upward trajectory is far from over and insists there is “no reason” Formula 1 cannot continue expanding.
Wolff recently sold 15% of his investment company to CrowdStrike CEO George Kurtz. This transaction translates into a 5% share of the Mercedes F1 outfit, jointly owned by Wolff, Mercedes-Benz, and Ineos. The sale confirms a record valuation for the team, which Wolff joined as a shareholder in 2013.
The number stems from a multiplier of roughly seven times Mercedes’ 2024 revenue, which stood at £636 million ($858 million). The introduction of the cost cap has turned F1 teams into sustainable, profitable structures, and Mercedes has been one of the biggest beneficiaries.
Wolff admitted the rapid financial rise of F1 teams would have been unimaginable a few years ago.
“If someone would have told us five years ago what the valuations would be, we would have never believed it,” he said.
He credited the sport’s financial reforms for reshaping the landscape. “Because of the cost cap, our business case changed fundamentally rather than outspending each other no matter what… We were able to increase the revenues and increase the free cash flows. And that put on the multiples that have led us to these valuations.”
Mercedes Joins Europe’s Most Valuable Sports Giants
With this valuation, Mercedes now sits alongside financial powerhouses like Manchester United, FC Barcelona, and Real Madrid. Still, Wolff believes the ceiling is much higher when looking at American sports trends.
He compared F1’s rise to the booming valuations in US franchises. “When you look at the US teams, five years ago the Dallas Cowboys were $3bn. Today they are $12bn because of the underlying figures that have changed,” he noted.
For Wolff, F1’s growth will continue as long as the sport stays entertaining and competitive. “If we continue trying to understand what makes a sport enjoyable and entertaining and putting on a great show, then there is no reason that the sport can’t continue to grow as it is.”
Wolff Clarifies His Intentions: “No Plan to Leave”
Amid speculation about the sale, Wolff made it clear that his commitment to Mercedes remains unchanged. “I have no plan to sell the team or no plan to leave my role. I’m actually in a good space and I’m enjoying it,” he said.
He explained that Kurtz’s entry has strategic advantages, especially for strengthening Mercedes’ presence in the United States.
“In my investment holding I sold some shares to George, who is a racer, who is a tech entrepreneur, who is someone that is going to help us leverage the US market. That was the reason behind it, but nothing else.”
Wolff emphasised that his long-term involvement in the team is solid as long as he continues to add value.
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