Wolff enjoys massive dividend windfall from Mercedes F1 team

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The Mercedes AMG Formula 1 team delivered a robust financial performance in 2024, reporting significant gains in both revenue and profits, driven by increased commercial income and a strong on-track showing.

The results have led to a significant dividend distributed to the team’s three shareholders, namely team principal Toto Wolff, Mercedes-Benz and partner INEOS.

According to financial statements filed by Mercedes Grand Prix Limited with the UK’s Companies House on Thursday, the team’s revenue surged by 16 percent, rising from £546.5 million in 2023 to £636 million ($856 million) in 2024.

The growth was primarily attributed to a boost in commercial revenues, with sponsorship and licensing deals contributing over 60 percent to the team’s top line.

On-Track Success Fuels Prize Money Gains

Mercedes’ second-place finish behind Red Bull in the 2023 constructors’ championship also played a key role in driving revenue higher, securing a larger share of Formula 1’s prize money, which is distributed to teams the following year based on championship standings and other factors.

This influx, combined with four race wins and five additional podiums in 2024, helped propel the team’s financial success. The team also reported a cumulative Advertising Value Equivalent (AVE) of $5.7 billion for itself and its partners, underscoring its global marketing impact.

Mercedes’ revenue growth translated into a sharp increase in profitability. Earnings before interest and taxes (EBIT) rose from £113.8 million ($153 million) to £160.6 million ($215 million).

After accounting for a 25 percent UK corporation tax rate, which amounted to just over £40 million, the team recorded a net profit of £120.34 million ($161 million) – a nearly 50 percent jump from £83.8 million ($113 million) in 2023.

A Windfall for Shareholders

The team’s strong financial position enabled it to declare a £125 million ($168 million) ordinary dividend, to be paid in two installments of £75 million and £50 million, benefiting its shareholders: Mercedes-Benz Group, team principal Toto Wolff, and Ineos.

While it is surprising to see an ordinary dividend surpassing a company’s annual net profit, in this case, Mercedes specifies that the “dividend comprises an element of previously undistributed earnings from prior years”.

Mercedes AMG F1 team principal Toto Wolff with fellow shareholder Jim Ratcliffe.

Looking ahead, Mercedes is investing in its future, with ongoing redevelopment of its Brackley chassis facility and plans to construct two new buildings in 2025 to enhance operational efficiency.

The team’s 2024 results highlight its ability to capitalize on both commercial opportunities and competitive performance, positioning it well for continued success in Formula 1’s increasingly competitive landscape.

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Phillip van Osten

Motor racing was a backdrop from the outset in Phillip van Osten's life. Born in Southern California, Phillip grew up with the sights and sounds of fast cars thanks to his father, Dick van Osten, an editor and writer for Auto Speed and Sport and Motor Trend. Phillip's passion for racing grew even more when his family moved to Europe and he became acquainted with the extraordinary world of Grand Prix racing. He was an early contributor to the monthly French F1i Magazine, often providing a historic or business perspective on Formula 1's affairs. In 2012, he co-authored along with fellow journalist Pierre Van Vliet the English-language adaptation of a limited edition book devoted to the great Belgian driver Jacky Ickx. He also authored "The American Legacy in Formula 1", a book which recounts the trials and tribulations of American drivers in Grand Prix racing. Phillip is also a commentator for Belgian broadcaster Be.TV for the US Indycar series.