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

Multi 21 revisited - and what Webber thinks of it now

Multi 21 revisited - and what Webber thinks of it now
Load comments

About this article

Series Formula 1
Teams Mercedes
Author Adam Cooper
What Mercedes must do to keep its F1 title challenge on track Prime

What Mercedes must do to keep its F1 title challenge on track

Mercedes may find itself leading the drivers' and constructors' standings after Lewis Hamilton's victory in the Bahrain Grand Prix, but it is well aware that it came against the odds, with Red Bull clearly ahead. Here's what the Brackley team must do to avoid its crown slipping .

The double whammy that is defining Vettel’s F1 fate Prime

The double whammy that is defining Vettel’s F1 fate

It's been a tough start to Sebastian Vettel's Aston Martin F1 career, with a lack of pre-season testing mileage followed by an incident-packed Bahrain GP. But two key underlying factors mean a turnaround is no guarantee.

Formula 1
Apr 14, 2021
The themes to watch in F1's Imola return Prime

The themes to watch in F1's Imola return

Three weeks is a long time in Formula 1, but in the reshaped start to the 2021 season the teams head to Imola to pick things up after the frenetic Bahrain opener. Here's what to look out for and the developments to follow at the Emilia Romagna Grand Prix

Formula 1
Apr 13, 2021
The 'new' F1 drivers who need to improve at Imola Prime

The 'new' F1 drivers who need to improve at Imola

After a pandemic-hit winter of seat-swapping, F1 kicked off its season with several new faces in town, other drivers adapting to new environments, and one making a much-anticipated comeback. Ben Anderson looks at who made the most of their opportunity and who needs to try harder…

Formula 1
Apr 12, 2021
The delay that quashed Aston Martin’s last F1 venture Prime

The delay that quashed Aston Martin’s last F1 venture

Aston Martin’s only previous foray into Formula 1 in the late 1950s was a short-lived and unsuccessful affair. But it could have been so different, says Nigel Roebuck.

Formula 1
Apr 10, 2021
Verstappen exclusive: Why lack of titles won't hurt Red Bull's ace Prime

Verstappen exclusive: Why lack of titles won't hurt Red Bull's ace

Max Verstappen’s star quality in Formula 1 is clear. Now equipped with a Red Bull car that is, right now, the world title favourite and the experience to support his talent, could 2021 be the Dutchman’s year to topple the dominant force of Lewis Hamilton and Mercedes?

Formula 1
Apr 9, 2021
Is Formula 1 as good as it has ever been now? Prime

Is Formula 1 as good as it has ever been now?

For many, many years Formula 1 has strived to do and to be better on all fronts. With close competition, a growing fanbase, a stable political landscape and rules in place to encourage sustainability, 2021 is on course to provide an unexpected peak

Formula 1
Apr 8, 2021
How Williams’ new structure adheres to a growing F1 trend Prime

How Williams’ new structure adheres to a growing F1 trend

Williams held out against the tide for many years but, as MARK GALLAGHER explains, the age of the owner-manager is long gone

Formula 1
Apr 6, 2021