(Motorsports news) In essence, the figures indicate increasing money from sponsorship and the F1 prize fund, and they demonstrate how successful elite teams can be in today’s financial landscape. The Applied Science section also contributes to the turnover figure. To remain under the cost constraint, Mercedes, like other large teams, has transferred staff and other resources away from direct engagement in the F1 program.
The total income number includes sales of gearboxes and associated systems to Aston Martin and Williams. Mercedes-Benz Grand Prix Ltd claimed a turnover of £474.6m for 2022, up £91.3m from the previous year’s number of £383.3m. That revenue was roughly distributed as follows: 51% for sponsorship and licensing, 30% for the F1 prize money, and 19% for other revenues, primarily from the Applied Science section.
The prize fund income increased since 2021 was still a COVID-affected season, with several of the most lucrative flyaway races missing and several late substitutes inserted, as well as some crowd restrictions remaining, whereas 2022 was a normal schedule. As a result, the overall pie was larger in 2022, and Mercedes retained the largest part as the reigning 2021 constructors’ champion.
That income is expected to fall in the 2023 season as a result of the team’s drop to third place in the 2022 championship. The cost of sales, or what the team spent to race, increased by less than the amount of revenue, from £297.4m to £350.8m. This represents the additional resources invested in the W13 project in preparation for the new requirements in 2022, after the previous car was primarily a carryover, as well as the impact of inflation.
According to the financial statements, Ineos’ annual sponsorship was valued £42.0 million in 2022. Because the firm is a shareholder in the club, the figure had to be made public. Furthermore, the Ineos-backed America’s Cup enterprise, Athena Racing, paid £12.8 million for Applied Sciences’ R&D work.
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