Mercedes Formula 1 Team sees significant increase in revenue
The Mercedes Formula 1 team experienced its first winless season since 2011 last year. However, there are reasons for optimism off the track, as parent company Mercedes-Benz Grand Prix Ltd announced a revenue of £546.5 million for 2023.
The financial report covers the period from January 1, 2023, to December 31, 2023. Several factors contributed to Mercedes becoming the first F1 team to achieve a revenue of over £500 million, representing a significant increase of £71.9 million compared to the previous year.
According to a Group Strategic Report filed with the UK Companies House, the financial growth can be attributed to “increased revenue from sponsorships,” as the team secured seven new commercial partners throughout 2023.
The impressive revenue is also reflected in Mercedes’ on-track performance in 2023. Although they finished one place higher in the Constructors’ standings compared to 2022 (second place instead of third), fewer podiums had an impact on TV coverage.
“The team’s share of TV coverage decreased slightly to 14.7% in 2023, reflecting the lower number of podiums compared to 2022,” the Mercedes report stated.
“However, the Cumulative Advertising Value Equivalent (AVE) remained strong for our commercial partners and shareholders, totaling $5.3 billion. The team also saw significant growth on social media, with a total of 36 million followers (+15%) and 465 million interactions (+9%).”
The increase in revenue reflects the impressive value of the team. McLaren CEO Zak Brown believes that all 10 F1 teams are worth more than £1 billion, and Forbes estimated Mercedes’ value to be around $3.8 billion (approximately £3.05 billion) in July.
Mercdes’ profits for 2023 were £83.8 million, a decrease from £89.7 million in 2022. The report attributes this decline to higher tax payments and general expenses.
The development of cars increased from £41 million in 2022 to £52 million last year. The new chassis design for the 2024 car, which required a new chassis design, contributed to the higher development costs. Additionally, the early development of gearbox and suspension components for Williams’ campaign this season also played a role.
The size of the team also grew, with the overall Mercedes F1 group expanding from 1114 employees in 2022 to 1289 the following year. As a result, salaries increased by £29.6 million, totaling £111.7 million in 2023 compared to £82.1 million in 2022.
Mercedes also acknowledged that cost cap regulations were effectively controlling spending. The team’s report stated: “Financial Regulations continued to successfully control the cost base in 2023. After undergoing the FIA audit process, the team was confirmed to be fully compliant with the 2022 Financial Regulations.”
Looking to the future, Mercedes’ revenue for 2024 will likely be influenced by the development plans of its base in Brackley, which received planning permission in January 2024.
© 2024
The soccer star Cristiano Ronaldo scored two goals in his debut for Manchester United in the 4-1 victory over Newcastle United. The 36-year-old Portuguese player returned to the English club after 12 years. His first stint at Manchester United was from 2003 to 2009, where he won several titles, including the UEFA Champions League.
Ronaldo showcased his skill and goal-scoring instinct by scoring two goals in an exciting game. His first goal came at the 45th minute of the first half, as he took advantage of a precise cross and headed it into the back of the net. The second goal came at the 62nd minute, as he finished with precision after a well-worked play.
Ronaldo’s performance was applauded by the fans at the stadium and by fans around the world. His presence on the field brought a positive energy to the team and inspired his teammates to play at a higher level.
Ronaldo’s return to Manchester United was an emotional moment for the fans and the club. His signing was a major boost for the team, which aims to win titles and return to the top of English football. With his experience and talent, Ronaldo will certainly be a key piece in Manchester United’s success this season.
Manchester United fans are now eager to see more brilliant performances from Cristiano Ronaldo and hope that he can help the club achieve its goals. With his determination and skill, Ronaldo will surely leave his mark on English football once again.
