Formula 1 team valuations have increased by an extraordinary 197% since 2023, significantly outpacing the growth recorded by major American sports leagues including the NFL and NHL. According to Sportico’s 2026 analysis, the average Formula 1 team is now worth $4.55 billion, placing the championship ahead of Major League Baseball, the National Hockey League and leading international football clubs in average franchise value.
While the NFL and NBA remain ahead in absolute team valuations, Formula 1’s financial growth has been particularly remarkable. Ferrari continues to lead the sport’s most valuable teams, with an estimated valuation of $8.2 billion, ahead of Mercedes and McLaren. The figures underline how the championship has evolved into one of the most attractive sporting investments worldwide.
Formula 1 team valuations rise 197% and outpace NFL and NHL growth
Sportico estimates that the average Formula 1 team is worth $4.55 billion in 2026, representing a 33% increase compared with 2025. Excluding new entrant Cadillac, the year-on-year growth rises to 39%.
The longer-term comparison is even more impressive. Since 2023, Formula 1 team valuations have increased by 197%, considerably exceeding the 85% growth recorded by the NHL and the 81% achieved by the NFL over the same period.
This sharp increase demonstrates the growing commercial significance of Formula 1, with team ownership becoming increasingly valuable as investors seek opportunities within the championship.
Formula 1 teams generated approximately $5.2 billion in combined revenue during 2025, equivalent to an average of $523 million per team. That represents a 16% increase compared with the previous year.
The comparison with other major sports highlights the wider scale of the financial changes taking place. Growth figures cited for other competitions include the NFL at 30%, NBA at 28%, NHL at 16%, MLB at 12% and international football clubs at 11%.
Formula 1’s growing commercial strength has also been examined through the factors driving the championship’s global financial expansion, including its increasingly valuable teams and commercial opportunities.
F1 vs NFL, NBA, MLB and NHL: how average team values compare
Formula 1 now ranks third among the major sporting competitions examined by Sportico when comparing the average estimated value of their teams. Only the NFL and NBA remain ahead, while F1 has established a substantial advantage over MLB, the NHL and several major football competitions.
The estimated average team valuations are as follows:
- NFL: $9.34 billion
- NBA: $6.64 billion
- Formula 1: $4.55 billion
- MLB: $2.82 billion
- Top 32 international football clubs outside MLS: $2.48 billion
- NHL: $2.43 billion
- MLS: $767 million
- WNBA: $428 million
- NWSL: $184 million
The figures illustrate the remarkable position Formula 1 has reached in the global sporting economy. Although the average NFL franchise remains worth more than twice as much as an F1 team, Formula 1 has already moved ahead of several established competitions with considerably longer histories in major commercial markets.
The contrast with the NHL and NFL is particularly significant when considering growth since 2023. Formula 1’s 197% increase is substantially higher than the expansion recorded by either American league, suggesting that the financial value of its teams has been rising at an exceptional pace.
2026 Formula 1 team valuation rankings: Ferrari leads Mercedes and McLaren
Within Formula 1 itself, Ferrari remains the most valuable constructor, continuing to demonstrate exceptional commercial strength even as its rivals increase their own valuations.
Sportico’s estimated 2026 team values, together with their percentage increases compared with 2025, are:
- Ferrari: $8.2 billion (+28%)
- Mercedes: $7.75 billion (+32%)
- McLaren: $6.3 billion (+33%)
- Red Bull: $5.6 billion (+30%)
- Aston Martin: $4.15 billion (+38%)
- Alpine: $3.28 billion (+58%)
- Williams: $3.24 billion (+51%)
- Racing Bulls: $3.05 billion (+49%)
- Audi: $3 billion (+60%)
- Haas: $2.8 billion (+67%)
- Cadillac: $2.7 billion (new entrant)
Ferrari has now topped the valuation rankings for four consecutive years and ranks among the 30 most valuable sporting teams in the world. The arrival of seven-time Formula 1 world champion Lewis Hamilton has further strengthened the Scuderia’s commercial position and international appeal.
The Maranello manufacturer’s $8.2 billion valuation places Ferrari ahead of Mercedes and McLaren, reinforcing its status as Formula 1’s leading commercial asset.
However, financial value and sporting success remain different measures. The Italian team’s strong commercial position does not automatically translate into results on the circuit, particularly within a championship operating under strict financial regulations.
Cadillac enters F1 valuations at $2.7 billion despite heavy investment costs
Cadillac, the new American constructor and 11th team on the Formula 1 grid, occupies the bottom position in the 2026 valuation rankings, with an estimated value of $2.7 billion in its first year.
Entering the championship has required a considerable financial commitment. The team paid a substantial dilution fee to the existing constructors, while its start-up costs exceeded $1 billion.
Cadillac recorded an estimated deficit of approximately $400 million in 2025, with profitability not expected for at least four years. Mark Walter, who controls a majority stake through TWG Global, is reportedly considering selling his shareholding.
Despite these considerable costs, Cadillac’s valuation illustrates the high financial barrier to entering Formula 1 and the value investors attach to securing a place on the grid.
How Formula 1’s budget cap helped make teams more profitable
One of the main factors supporting Formula 1’s financial stability has been the introduction of the budget cap in 2021. By restricting certain operational expenditure, the regulations have helped teams manage costs while benefiting from rising commercial revenues.
The initial spending limit was set at $145 million before falling to $140 million and subsequently $135 million. In 2026, the limit increased to $215 million, incorporating additional categories of expenditure, including depreciation, safety-related costs and catering.
The effect on profitability has been significant. Seven of the ten established Formula 1 teams finished 2025 with a profit under the financial framework.
McLaren could have become the eighth profitable constructor, but a one-off payment exceeding $130 million connected to a sale resulted in a reported loss of $23 million.
The cost cap has therefore played an important role in making Formula 1 teams more financially sustainable. It provides a framework in which rising revenues do not necessarily require equivalent increases in permitted expenditure, helping explain why ownership stakes have become increasingly attractive.
Why Formula 1 teams remain attractive investments compared with other sports
The combination of increasing revenues, controlled expenditure and rapidly growing franchise valuations has strengthened Formula 1’s position within the global sports investment market.
Compared with established American competitions such as the NFL and NBA, Formula 1 teams remain available at lower revenue multiples, while their commercial income has been expanding at a particularly strong rate.
This creates an attractive proposition for investors seeking exposure to a major international sporting championship. Formula 1 already exceeds several established leagues in average team value, yet its valuations remain below those of the NFL and NBA.
Ferrari continues to lead the championship’s financial rankings, but the wider story extends across the entire grid. From major manufacturers to smaller independent constructors and new entrants such as Cadillac, the rising value of Formula 1 teams demonstrates how rapidly the sport’s commercial landscape has changed.
With average valuations having increased by 197% since 2023, Formula 1 has become one of the fastest-growing categories of major sporting assets, reinforcing its position as a serious competitor to traditional American sports leagues in the global investment market.
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