Formula 1 is no longer just racing on the track: it is increasingly doing so in financial terms as well. Soaring valuations, record profits, and investors willing to spend like never before are transforming F1 teams into some of the most coveted sports assets in the world.
In an ecosystem historically marked by uncontrollable costs, the introduction of the budget cap, the media explosion of the series, and the influx of global capital have turbocharged the entire sector. Today, the ten teams on the grid are worth an average of 3.6 billion dollars each—a figure that, just a few years ago, would have seemed like science fiction.
The F1 economy shifts up a gear
The negotiations between Toto Wolff and billionaire George Kurtz, with Mercedes valued at around 6 billion dollars, confirm the transformation of the paddock into a top-tier financial arena. In just two years, the team’s value has grown by 58%, surpassing many NFL, NBA, and MLB franchises.
Ferrari leads the ranking: according to Forbes, it is worth 6.5 billion dollars. No team today is valued below 1.5 billion dollars, a threshold that only four teams surpassed in 2022. The introduction of the 2021 budget cap revolutionized team accounts: top teams reduced waste and generated significant profits. Mercedes closed 2024 with 202 million dollars, McLaren with 61 million, and six out of ten teams posted profits.
This new scenario has attracted investors. Numerous offers for Red Bull’s junior team have been rejected, with valuation multiples of up to 7–8 times revenue. Even internal acquisitions, such as the recent one at McLaren Racing, confirm that Formula 1 is perceived as a stable and growing asset.
Structural limits and expanding potential
Some voices, however, urge caution. Unlike the major American leagues, F1 teams do not control the championship or the rights, which remain with Liberty Media. In addition, Formula 1 has a smaller “inventory” compared to the NFL or NBA: fewer events, less sponsor space, and a U.S. audience still to consolidate, despite the recent five-year agreement with Apple TV.
Growth could slow, and smaller teams will still need to prove that they deserve billion-dollar valuations, especially with the budget cap set to increase. Despite this, several factors fuel optimism: the arrival of Cadillac as the eleventh team with an investment exceeding one billion dollars, increasing average revenues, high fees required from new host countries, and the social boost from Drive to Survive and the F1 movie starring Brad Pitt.
The three most valuable F1 teams in the world
#1 Ferrari – 6.5 billion dollars
Revenue: 670 million | Operating profit: 80 million
Despite not winning a championship in 17 years, Ferrari remains the most powerful brand in Formula 1. The arrival of Lewis Hamilton has amplified global attention: engagement is 31% higher than other teams, with a media value 44% higher.
#2 Mercedes – 6 billion dollars
Revenue: 799 million | Operating profit: 202 million
With the Russell–Antonelli duo and heavyweight sponsors, Mercedes aims to return to the glory days of 2014–2021. Financially, it remains one of the strongest teams in sport.
#3 McLaren – 4.4 billion dollars
Revenue: 614 million | Operating profit: 61 million
From near insolvency to a reborn team: McLaren is experiencing a second youth. Lando Norris is fighting for the title, revenues are up 26%, and from 2026, a record 100 million dollar sponsorship from Mastercard will begin.
Formula 1 is undergoing a total metamorphosis: from an elitist and fragile sport to a financial machine capable of competing with the wealthiest leagues on the planet. Despite some uncertainties, the value created by top teams and global interest indicate that F1 has found its best aerodynamic slipstream yet.
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