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Mercedes F1 staff earned £474m in 2022

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In essence, the figures characterize elevated income from sponsorship and the F1 prize fund, and are strong proof of how profitable high groups could be within the sport’s present monetary surroundings.

The turnover determine additionally features a contribution from the Utilized Science division. Like different large groups Mercedes has moved individuals and different sources out of a direct involvement within the F1 programme in an effort to keep underneath the price cap.

The general earnings determine additionally contains objects such because the sale of gearboxes and related programs to Aston Martin and Williams.

Mercedes-Benz Grand Prix Ltd declared turnover of £474.6m for 2022, representing a rise of £91.3m on the earlier yr’s determine of £383.3m.

That income was cut up roughly into 51% for sponsorship and licensing, 30% from the F1 prize fund, and 19% for different earnings, which was primarily the Utilized Science division.

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The prize fund earnings was up as a result of 2021 was nonetheless a COVID-hit season with a number of of the extra profitable flyaway races absent and a few late replacements added, with some crowd restrictions nonetheless in place, whereas in 2022 there was a standard schedule.

Thus there was an even bigger general pie to share between the groups in 2022, and as reigning 2021 constructors’ champion, Mercedes continued to earn the largest slice.

That earnings is ready to dip for the 2023 season because the affect of the staff’s slip to 3rd place within the 2022 championship kicks in.

Value of gross sales, in essence what the staff spent to go racing, rose by a smaller quantity than turnover, from £297.4m to £350.8m.

That displays the additional sources put into the W13 challenge for the brand new laws in 2022, after the earlier automobile was largely a carryover, in addition to the affect of inflation.

As well as the calendar, extra flyaway races added to the general price of operating the staff in 2022.

Mercedes W13 brand element

Photograph by: Steve Etherington / Motorsport Images

Earnings after tax have been £89.7m, up by some £20.9m from £68.8m. Nevertheless, there was a one-off tax scenario in 2022 that put a giant dent within the former determine. At an working degree the revenue was even greater, up from £71.9m to £113.6m, which maybe provides a more true indication of how effectively the corporate carried out.

A dividend of £75.0m was cut up equally between the three shareholders, Mercedes AG, Ineos and staff principal Toto Wolff’s firm, MIL.

The typical headcount in 2022 was 1114, a rise of over 100 in comparison with the earlier yr. Solely 24 added in design, engineering and manufacturing, and thus straight underneath the price cap, with the remaining in administration.

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The latter rise largely displays the additional HR and finance individuals wanted to cope with the operation of the price cap, in addition to further advertising and marketing workers concerned within the servicing of sponsors, with the staff enterprise extra hospitality at races.

Intriguingly, regardless of the rise in general workers, prices have been down from £109.0m to £93.8m, primarily reflecting the truth that in 2022 the staff fell to 3rd within the constructors’ championship with only one race win, and thus staff didn’t obtain the success bonuses that they earned in 2021.

The 2022 season additionally noticed the staff lastly purchase possession of the Brackley web site it has occupied because it began as British American Racing in 1999, and which is signalled by a rise of £30m in tangible property.

Wolff famous that the acquisition “will give a safer, sturdy and autonomous enterprise mannequin for the longer term, and allow vital funding into cutting-edge, net-zero-carbon amenities because the campus is developed.”

One attention-grabbing element that emerges from the accounts is that the annual Ineos sponsorship was price £42.0m in 2022. That determine needed to be made public as a result of the corporate is a associated get together as a shareholder of the staff.

As well as, the Ineos-backed America’s Cup challenge, Athena Racing, paid £12.8m for the R&D work performed by Utilized Sciences.

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