https://www.autosport.com/f1/news/151892/mercedes-spent-over-333m-to-win-the-2019-f1-title The Mercedes Formula 1 team spent over £333m to win the 2019 world championship, newly released figures have revealed. The numbers indicate how much the team will have to restructure as the sport heads into 2021 and the new era of the cost cap. Next year under the FIA financial regulations the team will have to run to a budget of $145m, or the approximate equivalent of £108m. While there are many exclusions that don't come under the cap, such as the salaries of drivers and top management and marketing expenses, there is still a huge gulf for Mercedes to shrink to meet the new rules. The numbers include only the cost of running the Brackley racing team, with the Brixworth HPP engine facility represented only by a nominal leasing fee in the accounts. The team earned its highest ever income last year. After remaining steady at £337.2m in 2017 and £338.4m in 2018 its income, mostly from sponsorship and the F1 prize fund, rose to £363.6m in 2019. The numbers reveal that the outside income was so great that a net amount of less than £30m was paid to the team by Mercedes-Benz as a marketing contribution, after the engine leasing fee had been paid back by the team. Image Unavailable, Please Login However, in parallel with the higher income there was a corresponding increase in costs, from £309.7m in 2017 and £311.4m in 2018 to £333.2m last year. Profits rose slightly from £12.7m in 2018 to £14.7m in 2019. The increase in both income and costs were related in part to the founding of the Mercedes-Benz Applied Science division in 2019. The first major customer for MBAS is a co-operation with the INEOS-backed cycling and America's Cup programmes. The INEOS project contributed to an ongoing rise in headcount, which also reflects the fact that all the major teams were ramping up their engineering resources in 2019-'20 in order to get as much R&D done for the new technical regulations before the cost cap comes in in 2021. Headcount rose from 912 in 2017 to 968 in 2018 and 1016 in 2019, with 35 people added last year on the design, manufacturing and engineering side, and the rest in administration. Total staff costs were £95.3m. Representing the directors Mercedes F1 team principal Toto Wolff pointed out that the team earned 23.6% of F1's TV coverage in 2019, and generated AVE [advertising value equivalent] of $5.4bn with its partners, while also helping to make Mercedes the eighth most valuable brand in the world. Wolff said: "[Mercedes] aspires to win both championships for the seventh consecutive season, while preparing the company to deliver maximum competitiveness under the new financial regulations that will be introduced from 2021. Image Unavailable, Please Login "The directors are proud and enthusiastic to be competing in the 2020 season and are committed to maintaining the impressive record of achievement since 2014. "As a high technology business, the team can adapt competitively and commercially to changes in its operating environment and will continue to invest in its capability and culture to ensure medium and long-term success both on and off track."
In 2019, Ferrari had a higher budget than Mercedes, and Red Bull wasn't too far behind. The clue to Mercedes success isn't in the budget.
Its efficient use of resources, targeted to areas of weakness to improve the overall package. They focus on results, minimize blame and push to win. Its a machine of speed, the entire process they use. The rest of them appear almost lost currently. Its crazy so far lol. Amazing history they are making.
https://www.google.co.uk/amp/s/beyondtheflag.com/2019/11/06/formula-1-current-team-budgets-175m-cap-impending/amp/ The Ferrari budget was smaller than Mercedes In 2019 but not by much. They basically spent the same money. It’s kind of irrelevant. The fact is Ferrari have a top quality budget. There are no excuses. They are performing worse than teams that spend less than half their budget. That’s disgraceful and an embarrassment of the highest order.
Ineos linked to taking shareholding in Mercedes F1 team https://www.autosport.com/f1/news/152102/ineos-linked-to-mercedes-f1-team-buyin - posted the full story of this link in race thread during first break while cars were in pitlane. https://www.gpfans.com/en/articles/56800/mercedes-to-consider-increased-investment-from-principal-partner-ineos/ This story has been growing over the last day and few hours. This will be interesting with respect to Mercedes' status and who is the majority owner/partner in the near future.
Why Mercedes would want to own stock in a team named Ineos? I just can't see it. Also that story was backed by Eddie Jordan. So, hell, no, it ain't gonna happen.
Why a company wants to own stock in another company? Because as a shareholder it get access to inside information, balance sheets, quarterly report, annual general meeting, possible a seat on the board and some say in the choice of the management team.
And why they would want to worry about the Ineos F1 team? They're in this for the self-promo, if the team is not called Mercedes, for them is of little more interest than Williams.
Toto denial of sale now - https://www.gpblog.com/en/news/68211/wolff-denies-sale-of-mercedes-team-daimler-has-no-intention-.html
I cannot answer why Mercedes would specifically like to have stock in the Ineos team. To keep some influence in F1?
I cannot find any reason why Ineos would need to advertise themselves by sponsoring sports. They don't sell their products to the general public, but to the petro-chemical industry.
Great info, but Toto Wolff said yesterday in an interview with Coulthard that he is responsible for a team of 2,000 people, twice the figure quoted above!!! Even at a modest £50,000 av. per employee = £100m, which leaves little room for biscuits with their afternoon tea Tony
If true it rather makes a mockery of the budget restrictions. I would say it counts for a large proportion of the costs in F!. What other parts of the company as a whole are excluded as well, my bet is that many of the top F1 teams have breakaway covert R&D departments which could never be identified Best Tony
There are 4 teams that make engines, and 6 that buy engines. Surely they can't have the same budget limit.
