(Mercedes F1’s Toto Wolff via Mark Thompson/Getty Images)
Despite finishing fourth in the Formula 1 team standings last year, the Mercedes-AMG Petronas team became the first team in Formula 1 history to cross $150 million in net profit.
According to recent financial filings in the United Kingdom, the Mercedes Formula 1 team generated $853 million in revenue last year and a net profit of $161 million. The team also received a 15.2% share of global TV coverage, resulting in $5.7 billion of advertising exposure for its brand partners. And even though Toto Wolff’s annual salary technically dropped from $8 million in 2023 to $6 million in 2024, the team’s $134 million dividend (split evenly between the team’s three owners) resulted in the Mercedes team principal still walking away with more than $50 million in earnings.
But these are just the headline numbers. Toto Wolff’s annual compensation is only a small part of the success within the Mercedes Formula 1 team. So, considering last week’s breakdown of McLaren Racing’s financials was so popular, I have spent the last few days reading through Mercedes’ recent 58-page financial filing line by line.
Today’s newsletter will cover all of the report’s most interesting details — from how the organization is set up to its revenue streams, margins, sponsorship fees, headcount, average employee salaries, alternative business lines, dividend distributions, and how Toto Wolff turned a unique equity deal into a $2 billion fortune.
This is the most detailed breakdown you will find anywhere on the internet, offering readers an inside look at how a $6 billion sports organization operates financially.