The numbers would have sounded absurd a decade ago. According to new valuations published by Forbes, the ten Formula 1 teams
on the grid are now worth an average of roughly $3.6 billion each. That’s an 89% jump in just two years, and it means
that even the smallest outfit is now valued at $1.5 billion or more.

At the top of the table sits Ferrari, valued at around $6.5 billion, followed closely by Mercedes at about
$6 billion and McLaren at roughly $4.4 billion. Red Bull Racing, Aston Martin and the rest round out a list where
every single name is now a multi-billion-dollar business, not just a racing team.

Behind those headline figures is a much bigger story: Formula 1 has quietly reinvented itself from a glamorous money pit
into one of the most lucrative sports ecosystems on the planet.

From Passion Projects to Franchise Assets

For most of its history, owning an F1 team was closer to owning a mega-yacht than a financial asset. Manufacturers and
billionaires spent heavily, chased glory and often left with little to show on the balance sheet. Teams collapsed or changed
hands regularly, and profitability was the exception, not the rule.

That changed with two key shifts:

• The cost cap: Since 2021, teams have operated under strict spending limits on racing operations,
  forcing them to behave more like disciplined businesses and less like arms races.
• Exploding revenues: Formula 1’s own income has climbed to around the mid-$3 billion range annually,
  powered by new races, richer TV deals, booming sponsorship and sold-out events.

Forbes’ analysis suggests that the ten teams now generate on average around $430 million a year in revenue, and that at least
six of them were profitable on an operating basis in 2024. A sport once associated with chronic overspending has become a
reasonably predictable cash generator.

The effect on valuations has been dramatic. Only four teams were believed to be worth more than $1.5 billion two years ago.
Today, all ten sit at or above that line.

The Top of the Grid: Ferrari, Mercedes and McLaren

The top of the valuation table tells its own story about how history, performance and brand power intersect.

• Ferrari – ≈ $6.5 billion: The most valuable team in F1, despite not winning a constructors’ title
  since 2008. Its race team sits on top of a legendary brand that has 16 constructors’ championships and unrivalled global recognition.
• Mercedes – ≈ $6 billion: The Silver Arrows generate the highest revenue and operating profit in the paddock,
  with around $799 million in 2024 turnover and just over $200 million in operating profit, according to Forbes’ estimates.
• McLaren – ≈ $4.4 billion: A remarkable turnaround story. The team went from heavy losses in 2018 to
  posting tens of millions in profit, while returning to the front of the grid and stacking up sponsorship deals.

Sponsorship analytics cited in the valuations underline why Ferrari still tops the list. The Italian team leads the grid
in social-media engagement by roughly a third and generates somewhere around 40% more sponsor media value than its rivals.
In other words, Ferrari may not always win on Sunday, but it still dominates Monday’s brand metrics.

The Billion-Dollar Midfield

The rest of the list shows just how far the sport has come. None of these teams are title favourites, yet all command valuations
that would have been unthinkable not long ago.

• Red Bull Racing – ≈ $4.35 billion
• Aston Martin – ≈ $3.2 billion
• Williams – ≈ $2.5 billion
• Alpine – ≈ $2.45 billion
• Sauber – ≈ $2.4 billion
• Racing Bulls – ≈ $2.3 billion
• Haas – ≈ $1.5 billion

Several of these organisations still post small operating losses. Others, like Racing Bulls and Haas, are modestly profitable
on relatively lean revenue bases. Yet the valuations reflect something beyond last year’s income statement: the confidence that
a limited number of licences in a fast-growing global series will hold or increase their value over time.

The Mercedes Deal That Crystallised the Market

If one transaction put a clear price tag on modern F1, it was Mercedes’ recent stake sale.

In November 2025, CrowdStrike founder George Kurtz bought a slice of team principal Toto Wolff’s ownership stake. While the exact
cash figure wasn’t made public, multiple reports put the implied valuation for Mercedes at around $6 billion – roughly
58% higher than Forbes’ estimate just two years earlier.

That deal didn’t change who runs the team, but it sent an unmistakable signal: F1 outfits are now being valued in the same
bracket as elite football clubs and some NFL and NBA franchises. For investors, Mercedes became proof that F1 teams are no
longer niche toys – they’re blue-chip sports properties.

Why the Money Keeps Rising

Several forces are pushing these valuations higher at the same time:

• Global calendar growth: A packed schedule stretching from the Middle East to the Americas has brought
  F1 closer to major sponsors and new fans.
• Streaming and storytelling: Netflix’s Drive to Survive and looser social-media rules have turned
  drivers and team bosses into mainstream personalities, particularly in the US.
• Record revenues: Industry reporting shows F1’s annual revenue now in the region of $3.6–$3.65 billion,
  up strongly from about $3.2 billion in 2023, with race attendance and TV viewership also hitting new highs.
• Limited supply: There are still only ten teams on the grid. With a cost cap and strict entry rules,
  each existing licence has become more valuable.

Put simply: F1 has managed to turn more fans, more content and more races into more predictable cash flow – without letting
costs explode in parallel.

What It Means for Fans and the Sport

For fans, the boom brings both benefits and concerns.

On the positive side, deeper pockets and more stable ownership mean better facilities, stronger junior programmes and a lower
risk that teams will vanish mid-season. The fight for sponsors and investors also pushes teams to produce more behind-the-scenes
content and fan experiences, from paddock clubs to Netflix-style documentaries.

The flip-side is that premium valuations often go hand-in-hand with premium pricing. As F1 leans into glitzy street races and
VIP hospitality, there’s a real risk that traditional fans get squeezed by higher ticket prices and more races disappearing
behind paywalls.

There’s also a sporting question. A cost cap levels the playing field only up to a point. Commercial muscle still matters when
it comes to attracting sponsors, top engineers and star drivers, even if everyone has to respect the same budget line.

The Next Decade of Billion-Dollar Racing

Looking ahead, a few big themes will decide whether today’s valuations are a ceiling or just another step on the way up:

• New manufacturers, such as Audi and Cadillac, joining the grid and potentially raising overall demand for entries.
• How successfully Liberty Media can renew US broadcast rights and integrate MotoGP into its motorsport portfolio.
• Whether F1 can keep expanding without diluting the product with too many races or losing its competitive edge.

What’s clear already is that the days of F1 teams as expensive hobbies are over. With cost controls in place, global media
momentum and investors lining up to buy in, the sport has become a case study in how to turn a niche, high-tech competition
into a set of billion-dollar franchises.

For the teams, that means more responsibility and more scrutiny. For the rest of us, it means that when the lights go out on
Sunday, there’s far more than lap times and trophies on the line – there’s a multi-billion-dollar business model racing at
300 km/h.