Ferrari stays most valuable F1 team despite operational deficit

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Ferrari is yet again the among the two highest-earning and the most valuable team in the Formula 1 circuit followed by Mercedes, a sharp contrast to the two Formula One giants’ performance on the track this season where the Scuderia team is almost assured of finishing second to the Mercedes-AMG Petronas Motorsport team.

Mercedes are also marginally ahead in revenues and way ahead on operational income than their closest rivals in both the commercial and competition performances. While Ferrari’s operational income is in the red, Mercedes has recorded the highest operating profit of $22 million last year, according to the business magazine Forbes, which has published the estimated valuation, revenue and operating income of the Formula 1 team.

Besides Mercedes, Red Bull ($ 1mn), Williams and Toro Rosso ($6 mn each) are the only other teams to have operational profits, according to the Forbes estimates. McLaren reportedly has the highest operations deficit of $ 137 million – higher than the gross valuation of Racing Point (formerly Force India), Haas F1 and Alfa Romeo.

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The US business magazine Forbes has rated the top ten F1 teams in order of their estimated valuation for the 2018 season.

TOP RANKED FORMULA 1 TEAMS (Forbes estimates – mn$)
Rank Team Value Revenue Operating Income
1 Ferrari 1,350 426 -12
2 Mercedes 1,015 451 22
3 Red Bull Racing 640 327 1
4 McLaren 620 165 -137
5 Renault 430 195 -7
6 Williams 400 176 6
7 Toro Rosso 200 172 6
8 Racing Point 130 104 -17
9 Haas F1 115 95 -28
10 Alfa Romeo 105 84 -18

Source: Forbes

Mercedes has reportedly gained from their sustained dominance and investments. The Silver Arrows had spent $ 340 mn in 2014 – 26% more than their previous year’s commitment and 59% higher than what the German automobile giant had put in its F1 venture in 2012. Those investments had resulted in a $150 million deficit in the first championship year. With sustained efforts, Mercedes has put the highest operational income of $ 22 mn among all the F1 team in 2018. Their spending during the fiscal too has been projected by Forbes as $100 mn more than any other F1 team.

Formula 1 team Williams posts significant losses

Even as Ferrari has been in the red in the Forbes estimations, it still enjoys a healthy lead over Mercedes in overall value estimations and no other team comes closer to the two. In fact, both the teams individually have higher net worth valuation than the collective values of Williams, Toro Rosso, Racing Point, Haas F1 an Alfa Romeo in the No. 6 to 10 positions.

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