Mercedes accounts reveal cost of 2018 F1 title

The Mercedes Formula 1 team earned and spent almost the same amount in 2018 as it did in the previous season, newly-released accounts have revealed.

Mercedes accounts reveal cost of 2018 F1 title

The team's income from F1 prize money, sponsorship and parent company Daimler AG, rose from £337.2m in 2017 to £338.4m last year.

Expenditure increased from £309.7m to £311.4m, resulting in a post-tax profit of £13.3m.

Income and expenditure had previously made a significant jump from 2016 to 2017, with the latter figures reflecting the R&D costs associated with the major F1 rules changes introduced that season.

The fact that its expenditure essentially stayed the same in 2018 suggests that Mercedes opted to maintain that level of investment in a period of relatively stable rules.

Read Also:

However there is no outward sign yet of the team addressing the cost cap that is coming in 2021, and which will force the big three teams to trim spending and inevitably head counts.

Indeed over the past three seasons average staff numbers have risen from 849 in 2016 to 912 in 2017 and to 968 in 2018, with 38 added last year in design, manufacturing and engineering, and 19 in administration. That contributed to the 2018 wage bill increasing by £6.5m from £87.2m to £93.7m.

The marketing revenue contribution of Daimler AG to the team's budget is listed as £64.3m, around £4m more than the previous year.

However, £25.3m is returned by the team – reflecting the leasing cost of the power units supplied by sister company HPP. That leaves a net Daimler contribution of less than £40m.

As last year that number suggests that Mercedes gets a big bang for its buck, given that it enjoyed a 24% share of F1's TV coverage in 2018, which represents an AER (Advertising Value Equivalent) of $3.7bn for its commercial partners.

In emphasising the value of the F1 programme the team says: "In parallel to the team's success in recent seasons, the Mercedes-Benz brand has grown in value from $31.9bn in 2013 to $48.6bn in 2018 (as measured by Interbrand), with F1 making an important contribution to the brand's status as the eighth most valuable in the world."

shares
comments
Verstappen explains why Red Bull couldn't carry Friday form
Previous article

Verstappen explains why Red Bull couldn't carry Friday form

Next article

Vettel expands on "Bring back f***ing V12s" remark

Vettel expands on "Bring back f***ing V12s" remark
How Ferrari's Monaco headache became its Silverstone migraine Prime

How Ferrari's Monaco headache became its Silverstone migraine

OPINION: Ferrari won the British Grand Prix with Carlos Sainz, but it ultimately cost Charles Leclerc a chance to make a bigger dent in Max Verstappen's title lead by leaving the Monegasque out on old tyres towards the end. Like Monaco, indecision over strategy proved to be the Scuderia's biggest issue - and if the team doesn't reflect, the headache can only intensify

The five factors that won Sainz a British GP he’d twice lost Prime

The five factors that won Sainz a British GP he’d twice lost

Formula 1 has a newest race winner, in a grand prix the victor appeared to have lost twice, only to charge back to headline a sensational and dramatic British Grand Prix. From a massive start crash to a late sprint finish, here’s how five factors saw Carlos Sainz take his maiden grand prix win

Formula 1
Jul 4, 2022
Why there was no case to answer in Aston's latest F1 copycat saga Prime

Why there was no case to answer in Aston's latest F1 copycat saga

The appearance of a revised Aston Martin in Spain caused controversy but PAT SYMONDS explains why the FIA investigation found the Silverstone team had no case to answer

Formula 1
Jul 3, 2022
Why it's Red Bull that really leads a three-way fight so far at Silverstone Prime

Why it's Red Bull that really leads a three-way fight so far at Silverstone

After a slow start to Friday at Silverstone, all the Formula 1 teams had to effectively cram in a day’s worth of practice into one hour. But there was still plenty to learn and while Ferrari topped the times, a three-way battle is brewing ahead of the British Grand Prix

Formula 1
Jul 2, 2022
Verstappen exclusive: Why F1's champion isn't fazed by Silverstone return Prime

Verstappen exclusive: Why F1's champion isn't fazed by Silverstone return

Max Verstappen is the world’s number one racing driver… and he’s determined to keep it that way. Speaking exclusively to GP Racing's OLEG KARPOV, the Red Bull driver explains why he’s relishing the 2022 championship battle with Charles Leclerc – and why he’s not worried about returning to Silverstone, the scene of the biggest accident of his career last year

Formula 1
Jun 30, 2022
Why Red Bull’s RB17 hypercar can help its F1 team Prime

Why Red Bull’s RB17 hypercar can help its F1 team

On Tuesday, Red Bull laid out its plans to develop and build a new hypercar - the RB17 - penned by Adrian Newey. As the project itself sates Newey as a creative outlet, it also offers Red Bull's Formula 1 team a number of new and exciting avenues to pursue.

Formula 1
Jun 29, 2022
What to expect from Mercedes as F1 returns to Silverstone Prime

What to expect from Mercedes as F1 returns to Silverstone

OPINION: The British Grand Prix is a home event for Lewis Hamilton and George Russell, with their Mercedes team based just a few miles away too. But there’s another reason why the Silver Arrows squad is eager to arrive at Silverstone this weekend, which may help it fix its remaining problems with its 2022 Formula 1 challenger .

Formula 1
Jun 29, 2022
Inside AlphaTauri’s Faenza F1 factory Prime

Inside AlphaTauri’s Faenza F1 factory

AlphaTauri’s mission in F1 is to sell clothes and train young drivers rather than win the championship – but you still need a cutting-edge factory to do that. Team boss Franz Tost takes GP Racing’s Oleg Karpov on a guided tour of a facility that’s continuing to grow.

Formula 1
Jun 26, 2022