Toto Wolff is reportedly in discussions to sell a portion of his ownership in the Mercedes Formula 1 team. Wolff, who currently holds a 33 percent stake in the team while also serving as the chief executive and team principal, is said to be in advanced negotiations to offload a small fraction of his shares to an external investor.
Sources indicate that Wolff is looking to sell between five and 10 percent of the team, potentially resulting in a valuation of approximately £4.5 billion and a substantial nine-figure payout for Wolff.
Despite the potential sale, Wolff is expected to retain all his current responsibilities within the team. A spokesperson for Mercedes confirmed that there are no planned changes to the team’s governance structure.
While details of the ownership adjustment remain undisclosed, the current ownership is evenly split among Wolff, the Mercedes-Benz Group, and INEOS, the petrochemicals company owned by Sir Jim Ratcliffe.
Mercedes reiterated its commitment to the team’s success, stating that all three partners are fully dedicated to the ongoing achievements of the Mercedes F1 team.
Reports suggest that this prospective deal, as initially reported by Sportico, would set a new benchmark for F1 team valuations. For instance, McLaren, who recently secured consecutive constructors’ titles, was valued at over £3 billion following Bahrain sovereign wealth fund Mumtalakat and Emirati investment group CYVN Holdings’ full acquisition.
The escalating value of F1 teams can be attributed to the sport’s expanding global fanbase. The Formula 1: Drive to Survive series on Netflix, which gained immense popularity during the pandemic, is credited with drawing in new audiences, particularly in the United States, where three races are now held annually.
Formula 1 enthusiasts can now enjoy live coverage of every practice, qualifying session, and race through Sky’s Essential TV and Sky Sports bundle, which includes access to around 100 TV channels, along with complimentary subscriptions to Netflix and Discovery+.
In January 2022, INEOS acquired a third of the Mercedes F1 team for approximately £200 million. If Wolff’s proposed share sale proceeds as planned, the team’s valuation would soar by 650 percent in under four years.
Even less successful teams are reaping the benefits of heightened interest in the sport. For instance, reports suggest that Gene Haas, an American businessman, has turned down multiple offers exceeding £1 billion for his namesake team in the past year, underscoring the increased attractiveness of F1 investments.