Wolff Mercedes stake sale will have impact on value of Formula 1
The valuation placed on Formula 1 team Mercedes after co-owner Toto Wolff’s interest in reducing his stake will have a welcome impact on the overall worth of the sport, experts have suggested.
Wolff co-owns the outfit – officially titled Mercedes AMG Petronas F1 Team – equally with the eponymous German car manufacturer and Ineos billionaire Sir Jim Ratcliffe, but is exploring a sale of around 5 per cent to – and Le Mans racer – George Kurtz.
The deal would value the eight-time Formula 1 constructors’ champions at £4.7bn just months after a series of minority stake buy-outs in McLaren valued the reigning team champions at £3.5bn.
“The Team and the sport as a whole will, however, welcome the valuation that Mr Wolff is able to achieve for a minority interest,” Shantanu Sinha, partner at Hill Dickinson, tells City PM, “which will have an impact on the overall valuation of the sport reinforcing F1’s rising global appeal, especially in the US market.”
Wolff helping Formula 1 valuation
Wolff is expected to stay on as team principal and chief executive if the deal is approved, and comes amid heightened interest in Formula 1.
There has been a touted bid for the Alpine team, potentially made up of former F1 stalwart Bernie Ecclestone with Flavio Briatore and Christian Horner, while Aston Martin received a £2.4bn valuation in 2024 after signing a binding letter of intent for a minority stake sale in parent firm Aston Martin Lagonda Holdings.
“The key consideration is how strategic control and decision-making balance are preserved,” Koo Aseeley of Dow Schofield Watts adds. “In a brand-driven sport like Formula 1, perceptions around stability are integral to value.
“If structured carefully, a partial sell-down need not dent investor confidence. Instead, it can reinforce confidence through signalling a clear governance framework and long-term alignment across the ownership group.”