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 share in the team while also serving as its chief executive and team principal, is said to be close to finalizing a deal to sell a small percentage of his equity to an external investor.
Sources indicate that Wolff is in talks to sell between 5 and 10 percent of the team, with the potential transaction valuing the F1 outfit at approximately £4.5 billion. If the sale goes ahead, Wolff stands to receive a substantial nine-figure sum while retaining all his current responsibilities within the team. A spokesperson for Mercedes affirmed that there would be no changes to the team’s governance structure.
However, the spokesperson declined to comment on the specifics of the ownership adjustment, which presently sees ownership equally split between Wolff, the Mercedes-Benz Group, and INEOS, the petrochemicals company owned by Sir Jim Ratcliffe. Emphasizing their commitment to the team’s success, the spokesperson stated that all three partners remain fully dedicated to Mercedes-Benz in Formula 1.
A recent report from Sportico revealed that the potential deal would establish a record-high valuation for an F1 team. For instance, McLaren, the team that clinched consecutive constructors’ titles in the past two seasons, was valued at over £3 billion in September after Bahrain’s sovereign wealth fund Mumtalakat acquired full ownership alongside Emirati investment group CYVN Holdings.
The escalating value of F1 teams in recent years can be attributed to the sport’s surging global viewership. The popular Netflix series, Formula 1: Drive to Survive, emerged as a major catalyst for growth, particularly during the initial Covid lockdown in 2020. The show’s success in attracting new audiences, especially in the USA, has led to the addition of three races per year in Miami, Austin, and Las Vegas.
Fans keen on following Formula 1 can catch all the action live, including practices, qualifiers, and races, through Sky’s Essential TV and Sky Sports bundle, currently offered at a discounted rate saving £336. The package also includes access to around 100 TV channels, as well as complimentary subscriptions to Netflix and Discovery+.
INEOS acquired a one-third stake in the Mercedes F1 team for approximately £200 million in January 2022. Should Wolff go ahead with the proposed sale of his stake, the new valuation would represent a remarkable 650 percent surge in just under four years.
Additionally, the heightened interest in Formula 1 has benefited even less successful teams. For instance, reports suggest that Gene Haas, the American entrepreneur behind the Haas F1 team, has rejected numerous offers exceeding £1 billion for his team within the past year, reflecting the increased attractiveness of the sport across various stakeholders.