The average value of Formula 1 teams is now $1.8 billion, a 276% increase from the $500 million average taken in 2019 by business publication Forbes.
The gain is largely attributed to the implementation of the $145 million cost cap in 2021, which limits how much money teams can spend on making their car go faster throughout the course of a season.
Prior to 2021 teams were spending upwards of $400 million annually which they would struggle to recoup. Now teams take around $600 million in earnings before interest, taxes, depreciation and amortization according to Forbes.
This would mean teams at the back of the grid would only need to reach $50 million in sponsorship income to cover the cost cap, which is a realistic prospect given they make around 65% of their income from central funds and 35% from sponsorships.
The hype around the 2022 regulations also contributed alongside the popularity of the Drive to Survive Netflix series. F1 has also expanded in the US in the last couple of years, with three races in 2023 at Miami, Austin and Las Vegas.
Ferrari is now valued at nearly $4 billion while Mercedes is close behind at $3.8 billion and Red Bull at $2.6 billion.
Most valuable F1 teams in 2023
| # | Team | Valuation |
|---|---|---|
| 1 | Ferrari | $3.9 billion |
| 2 | Mercedes | $3.8 billion |
| 3 | Red Bull Racing | $2.6 billion |
| 4 | McLaren | $2.2 billion |
| 5 | Alpine | $1.4 billion |
| 6 | Aston Martin | $1.3 billion |
| 7 | AlphaTauri | $1.1 billion |
| 8 | Alfa Romeo | $900 million |
| 9 | Haas | $780 million |
| 10 | Williams | $725 million |
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