Formula 1 teams have seen a remarkable increase in their valuations over the past five years, with an average growth rate of 280%. This surge in value can be attributed to several factors, including the rising popularity of the sport worldwide and the implementation of new spending caps that have leveled the playing field for teams.
According to data retrieved from Sportico and Statista, F1 teams have seen phenomenal growth in their valuation over the past five years. The average increase in valuation for Formula One teams over that period is an astonishing 280%.
Let’s take a quick look at what the data reveals before we take a deeper dive into the figures.
- Average F1 team saw 5-year increase in valuation of over 280%
- Ferrari the top valued Formula One team with a $3.13 billion valuation
- Alfa Romeo saw the largest growth with a valuation increase of over 675%
- Increased competitiveness and US market factors in growth
Formula One Teams’ 5-Year Valuation Increase From 2018 to 2023
Below is the table that shows each teams’ 2018 valuation compared to their current valuation in 2023.
*Table is best viewed in landscape mode on mobile devices.
| F1 Team | 2018 Valuation | 2023 Valuation | 5-Year Increase (%) |
| Ferrari | $1.35 Billion | $3.13 Billion | 131.85% |
| Mercedes | $1.015 Billion | $2.7 Billion | 166.01% |
| Red Bull | $640 Million | $2.42 Billion | 278.13% |
| McLaren | $620 Million | $1.56 Billion | 151.61% |
| Aston Martin | N/A (Didn’t Join Until 2021) | $1.14 Billion | N/A |
| Alpine (Renault) | $430 Million | $1.08 Billion | 151.16% |
| Alpha Tauri (Torro Rosso) | $200 Million | $905 Million | 352.50% |
| Alfa Romeo | $105 Million | $815 Million | 676.19% |
| Williams | $400 Million | $795 Million | 98.75% |
| Haas | $115 Million | $710 Million | 517.39% |
| AVG INCREASE | 280.40% |
Alfa Romeo and Haas Leading the Way in Terms of Growth
Leading the way, Alfa Romeo stands out with an astounding 676.19% increase in valuation, followed closely by Haas, which saw an impressive surge of 517.39%. These teams’ successes on and off the track have catapulted their values to new heights.
Other teams that have experienced substantial valuation growth include Alpha Tauri (formerly Toro Rosso) with a remarkable increase of 352.50% and Red Bull with an impressive surge of 278.13%. All of these teams have managed to improve their competitiveness and attract investment interest, leading to substantial jumps in their valuations.
Ferrari Still the Most Valuable F1 Team
In terms of the most valuable teams in Formula 1, Ferrari reigns supreme with a valuation of $3.13 billion. Despite a championship drought that will reach 15 years in 2023, Ferrari’s iconic brand and historical success have made it a highly sought-after team. Following Ferrari, Mercedes holds the second position with a valuation of $2.7 billion, closely followed by Red Bull at $2.42 billion.
It is worth noting that while some teams have experienced significant increases in valuation, others have joined the sport more recently or have not seen substantial growth. Aston Martin, for instance, entered Formula 1 in 2021, but still holds a valuation of a staggering $1.14 billion. Williams has seen moderate growth compared to other teams, with a valuation of $795 million, but is still almost 100% more valuable than it was in 2018.
Increased Competitiveness One Factor Behind the Growth
One of the key catalysts for the increased valuations is the introduction of spending caps, which have allowed teams to operate on a more level playing field. Zak Brown, CEO of McLaren Racing, highlighted the positive impact of the budget cap, stating that it has made their team profitable and given them the opportunity to compete with the traditionally dominant teams like Ferrari, Mercedes, and Red Bull.
The limited number of teams in Formula 1, currently standing at 10, adds to the scarcity value and global reach of the sport. This has attracted interest from investors looking to enter team ownership. Alpine, for example, recently raised $218 million from investors, including RedBird Capital Partners and actors Ryan Reynolds, Rob McElhenney, and Michael B. Jordan.
F1 Surging in USA
While the valuations of individual teams have soared, the sport as a whole has also experienced significant financial growth. Formula 1 generated $2.6 billion in revenue in 2022, a 20% increase from the previous year. The series has seen record attendance, with 5.7 million spectators in 2022, up 36% compared to 2019. The television audience has also grown, with ESPN reporting a 28% increase in viewership in 2022.
Sponsorship interest in Formula 1 has risen alongside its popularity. The global race schedule provides brands with an opportunity to reach diverse audiences, and with the sport’s growing presence in the United States, more American companies are getting involved. Heineken and Mercedes, for instance, have become sponsors for all Formula 1 races on ESPN and ABC.
Formula 1’s soaring valuations and financial success can be attributed to a combination of factors, including increased popularity, new spending caps, and a focus on global expansion. With the sport’s profitability on the rise and the addition of new races, such as the highly anticipated Las Vegas Grand Prix, the future looks bright for Formula 1 and its teams.
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