Inside Formula 1’s Most Valuable Teams 2025

Key Concepts

• Formula 1 Team Valuations
• Cost Cap Implementation (2021)
• Profitability in Formula 1
• Investor Interest and Stake Sales
• Revenue Multiples and Enterprise Value
• Forbes's Valuation Methodology

Formula 1 Team Valuations: A New Financial Era

The Formula 1 (F1) landscape is experiencing a significant financial boom, evidenced by the recent news of Toto Wolff, the billionaire team principal of the Mercedes F1 team, being in advanced talks to sell a minority stake to George Kurtz, co-founder of CrowdStrike, for approximately $6 billion. This valuation represents a substantial 58% increase from Forbes's assessment two years prior, positioning Mercedes among the most valuable sports franchises globally.

Comparative Valuations and Market Dominance

Mercedes' current valuation surpasses that of numerous franchises across major sports leagues. Specifically, it ranks higher than eight NFL franchises, 24 NBA franchises, 28 MLB franchises, and all 32 NHL franchises. Furthermore, it outranks every European soccer team except for Real Madrid and Manchester United.

However, Mercedes does not hold the top spot in F1. Ferrari, the sport's most historic team, is estimated by Forbes to be worth $6.5 billion, attributed to its unique standing within the sport.

Across-the-Grid Valuations and Revenue Growth

The financial surge is not limited to the top teams. All 10 F1 teams are now valued at $1.5 billion or more, a benchmark that only four teams met two years ago. The average valuation has climbed to $3.6 billion, marking an 89% increase since 2023. This upward trend is driven by a significant increase in revenue, with the average F1 team generating an estimated $430 million last year, continuing a multi-year period of double-digit compound annual growth rates (CAGRs). Mercedes' revenue of $799 million in 2024 places it 10th among the world's sports teams for the equivalent season.

Impact of the Cost Cap on Profitability

A primary driver behind these accelerating valuations is the shift towards profitability, largely attributed to the implementation of the cost cap in 2021. This regulation limits team spending on car design and construction to approximately $170 million for the current season. The cost cap was introduced to mitigate an "arms race" that saw top teams' annual budgets exceed $400 million, aiming to level the playing field.

The financial controls have proven effective, with six teams reporting profitability last year, according to Forbes's estimates. An F1 insider suggests that teams currently operating at a loss are "one sponsorship or two or three away" from breaking even, indicating a general trend towards financial solvency.

Profitability Examples and Investor Confidence

McLaren, which incurred a $137 million loss in 2018, achieved an operating profit of $61 million in 2024. Mercedes also reported a profit of $22 million, positioning it as one of the world's most profitable sports teams. This improved financial health has attracted significant investor interest, a stark contrast to the financial uncertainty that characterized the sport just five years ago.

Recent Transactions and Robust Multiples

The heightened investor confidence is reflected in recent transactions and the multiples at which teams are being valued. Red Bull, which operates two F1 teams, reportedly turned down a $2.3 billion offer for its junior team.

The impending Mercedes stake sale was priced at approximately 7.1 times the previous season's revenue. Other recent F1 transactions have also demonstrated robust multiples:

• McLaren Racing: In September, the owners of McLaren Racing, which includes its F1 team and entries in other motorsports like IndyCar, bought out minority shareholders at a valuation of around $4.5 billion. This represents 6.4 times the group's 2024 revenue, with Forbes estimating the F1 team alone accounts for $4.4 billion of this value.
• Aston Martin: Two deals involving Aston Martin have occurred:
  • A minority stake sale last year at a reported enterprise value of about $2.3 billion, representing 7.4 times the previous season's revenue.
  • An agreement in July for a reported $3.2 billion, or 8.6 times the prior season's revenue.
• Previous Aston Martin Stake Sale: In 2023, another Aston Martin minority stake was sold for approximately $1.2 billion, at 5.3 times the previous season's revenue.
• Alpine Stake Sale: In the same year, a minority stake in Alpine was sold for roughly $900 million, at a 2.8x multiple.

Valuation Multiples Trend

Forbes's latest valuations indicate that F1 teams are trading at approximately 8 times their average trailing year revenue. This is a significant increase from 2.3x in 2019 and 4.9x in 2023. As one F1 investor noted, "That's a huge increase in valuations, but that's just what's happening. At some point, you have to just accept reality."

For comprehensive coverage and the complete list of the most valuable F1 teams for 2025, refer to Brett Knight's article on Forbes.com.

This report was presented by Kieran Meadows from Forbes.