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Mercedes F1 hits $6bn valuation in record deal
Mercedes-AMG Petronas Formula 1 Team has been valued at a record $6 billion after team principal Toto Wolff sold a 5% stake to American billionaire George Kurtz, founder of cybersecurity firm CrowdStrike, officials confirmed Friday. The transaction-structured through Wolff's holding company-netted him $300 million while retaining his roles as team principal and CEO.
Deal structure and governance
The sale represents 15% of Wolff's one-third ownership in Mercedes F1, with Kurtz, 55, funding the purchase personally rather than through CrowdStrike. Despite the investment, Kurtz will not join the team's main board but will participate in its strategic steering committee, alongside Wolff, Mercedes Group chairman Ola Kallenius, and Ineos chairman Sir Jim Ratcliffe.
Kurtz described his role as "a seat at the table to provide input" and emphasized the deal's alignment with broader sports valuations. "If you look globally, sports valuations are all rising," he told reporters, citing Formula 1's "inflection point" as a thriving business with expansion potential.
"Formula 1 is at an inflection point where it is a thriving business. If you're making an investment like this, you believe the sport will grow, team valuations will grow, and you can contribute to that growth."
George Kurtz, CrowdStrike founder
Industry growth and comparative valuations
The $6 billion valuation-over seven times Mercedes' 2023 revenue of £636 million-reflects Formula 1's surging popularity, driven by initiatives like Netflix's Drive to Survive and the sport's U.S. expansion. Kurtz pointed to the addition of races in Austin, Miami, and Las Vegas, alongside the Mexican Grand Prix, as key growth drivers. "The U.S. market opportunity is massive," he said, comparing F1's trajectory to that of the NBA or NFL.
For context, Mercedes' valuation now exceeds Liverpool FC's but remains below Manchester United's, aligning with top-tier non-U.S. sports franchises. U.S. leagues like the NFL and NHL command significantly higher figures.
Revenue streams and cost controls
Mercedes' income derives from sponsorships (including CrowdStrike), F1 prize money, and technical partnerships-such as supplying gearboxes to Williams and Aston Martin. The sport's 2021 cost cap has stabilized financial outlooks, while long-term sponsorship deals underpin revenue predictability.
On-track performance and broader trends
Mercedes currently sits second in the constructors' championship with three races remaining, including this weekend's Las Vegas Grand Prix. Lead driver George Russell-fourth in the drivers' standings-has secured two wins this season, trailing McLaren's Lando Norris and Oscar Piastri, and Red Bull's Max Verstappen.
The deal underscores Formula 1's meteoric rise: Mercedes' valuation has surged over sevenfold since Ineos acquired a one-third stake for £208 million in 2020. Analysts attribute this growth to the sport's global appeal, amplified by blockbuster projects like the Brad Pitt film (titled provisionally 'F1'), which grossed over $630 million this summer-the highest-ever for a sports movie.
Future outlook
Kurtz's investment coincides with Cadillac's planned 2026 entry into F1, a move Forbes predicts will further inflate team valuations. Wolff praised Kurtz's "unusual breadth" of experience as a racer, Mercedes ambassador, and tech entrepreneur, noting his insight into "the demands of racing and scaling technology businesses"-a combination increasingly relevant to F1's evolution.
