Mercedes put a £324m price on its 2020 world championship
Reigning F1 world champions Mercedes spent £324m to win the world championship in 2020, but despite the hefty expense and the impact of the Covid-19 crisis on F1, the German outfit still racked in a profit last year.
Newly released company accounts show that the Brackley squad’s revenue fell only slightly from £363.6M to £355.5m in its fiscal year 2020.
The numbers reflect the sport’s overall drop in revenue due to the lesser amount of races last season but also a surprising boost in sponsorship income for Mercedes that mitigated F1’s reduced payments to teams.
Furthermore, Daimler’s contribution last year was fractionally reduced compared to 2019, the manufacturer supporting its F1 efforts last year to the tune of just over £27m.
Looking therefore at Mercedes’ bottom line, the team posted a profit after taxes of £13.6m, down slightly from £14.7m in 2019.
“The company’s success is measured by its performance in the championships and by reference to the financial parameters defined by its shareholders, which include achieving a financially sustainable future for the team,” Mercedes F1 team boss Toto Wolff noted in the company’s financial statement.
“From 2021, the introduction of new financial regulations will enable Formula 1 teams to achieve standalone financial sustainability in the years ahead.”
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As rumors of a Mercedes exit from F1 continue to ebb and flow, the Brackley outfit’s profitable 2020 results amid a very challenging year will have only strengthened the manufacturer’s position in the sport.
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As a reminder, Daimler reduced earlier this year its holding in the Mercedes F1 team which is now equally owned by the company alongside Wolff and INEOS owner Jim Ratcliffe.
“In parallel to the team’s success in recent seasons, the Mercedes brand has grown in value from $31.9 billion in 2013 to $49.3 billion in 2020, with F1 making an important contribution to the brand’s status as the eighth most valuable in the world,” added Wolff.
The bottom line? Mercedes won’t be leaving Formula 1 anytime soon as Grand Prix racing remains a it center for the manufacturer.
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