Toto Wolff is currently in the process of divesting a portion of his ownership in the Mercedes Formula 1 team. Wolff, who holds a 33 percent stake in the team and serves as the chief executive and team principal, is reportedly engaged in advanced discussions to sell a small portion of his shares to an external investor.
Sources indicate that Wolff is in negotiations to sell between five and 10 percent of the team, which, if finalized, would place the team’s valuation at approximately £4.5 billion, resulting in a substantial nine-figure payout for Wolff.
Despite the potential ownership shift, Wolff is expected to retain all his current positions within the team. A Mercedes spokesperson confirmed that there would be no changes to the team’s governance structure moving forward.
While the team spokesperson did not provide specific details on the proposed ownership adjustment, the current ownership is evenly split among Wolff, the Mercedes-Benz Group, and INEOS, Sir Jim Ratcliffe’s petrochemicals company.
The reported deal, first brought to light by Sportico, would mark a record-high valuation for an F1 team. For instance, McLaren, having clinched consecutive constructors’ titles in recent years, was valued at over £3 billion following the complete acquisition by Bahrain sovereign wealth fund Mumtalakat and Emirati investment group CYVN Holdings.
The escalating value of F1 teams can be attributed to the sport’s expanding global viewer base. The Formula 1: Drive to Survive series on Netflix, which gained immense popularity during the initial Covid lockdown in 2020, played a pivotal role in attracting new viewers, particularly in the USA, where three races are now held annually in Miami, Austin, and Las Vegas.
Fans of Formula 1 can access live coverage of every practice, qualifying session, and race through Sky’s new Essential TV and Sky Sports bundle, providing a savings of £192 along with access to around 100 TV channels, Netflix, and Discovery+ subscriptions.
In a significant move, INEOS acquired a one-third stake in the Mercedes F1 team for approximately £200 million in January 2022. Should Wolff’s proposed stake sale come to fruition, the new valuation would signify a remarkable 650 percent surge in just under four years.
The heightened interest in the sport has also benefitted less successful teams, exemplified by American entrepreneur Gene Haas rejecting multiple offers exceeding £1 billion for his namesake team in the past year.