Formula 1 Experiences surge in Commercial Interest and Team Valuations
Formula 1 is experiencing a period of significant growth,fueled by escalating commercial interest and dramatically increasing team valuations. Commercial revenue for the series reached almost $1.8 billion, a 12% increase year-over-year. This heightened interest is mirrored in a substantial expansion of sponsorship,with the number of partners growing from 12 to 27 over the past five years.
Recent major agreements underscore this trend. In 2025, Formula 1 secured a 10-year contract with the Louis Vuitton Hennessy Moet (LVMH) holding company. New sponsors joining the series include PepsiCo,Disney,Barilla,PwC,ALT Sports Data,and Allwyn,while existing partnerships with MSC Cruises and chef Gordon Ramsay (overseeing culinary projects at 10 races) have been extended.
This commercial success is directly impacting team valuations. Ferrari remains the most valuable formula 1 team for the third consecutive year, with a valuation of $6.4 billion - a 34% increase over the past year. Mercedes follows in second place at $5.88 billion (+49%), with McLaren securing third at $4.73 billion (a substantial 78% increase). Further down the list, valuations have also risen significantly for Red Bull ($4.32 billion, +23%), Aston Martin ($3 billion, +45%), alpine ($2.08 billion, +68%), Racing Bulls ($2.05 billion, +68%), Sauber ($1.88 billion, +57%), Haas ($1.66 billion,+65%),and Williams ($1.14 billion, +73%).
Despite these rising valuations, outright sales of team stakes remain relatively infrequent. The most recent major transaction occurred in January 2025, with automaker Audi acquiring 100% of Sauber shares for an estimated 600 million euros. Prior to this, Alpine sold a 24% stake to a group of investors, including actors Ryan Reynolds and Rob McElhenney, for €200 million in 2023, and Lawrence Stroll purchased Force India for $135 million in 2018, later rebranding it as Aston Martin.
Currently, significant interest exists in acquiring both minority and majority stakes in teams. Racing Bulls reportedly rejected a $2 billion offer for the team in 2025, with potential buyers including billionaires, institutional funds, corporations, automakers, and sovereign wealth funds from the Middle East.
Some team owners are capitalizing on increased valuations by selling portions of their holdings. Aston Martin sold part of its team stake this summer at a valuation exceeding $3 billion, and Mercedes team principal Toto Wolff discussed selling a minority stake in the team at a $6 billion valuation in early November 2025.
McLaren exemplifies the transformation within Formula 1 since Liberty Media’s acquisition of the series in 2017. The team shifted from a $137 million loss on $166 million revenue in 2018 to an operating profit of $76 million on $700 million revenue in 2024. This was further demonstrated by a recent ownership restructuring in the fall of 2024, where the Bahraini fund mumtalakat and the Emirati holding CYVN acquired 30% of the team, providing MSP Sports Capital – who initially invested $241 million in 2020 – with a nearly tenfold return on their investment.
