Toto Wolff has divested 15% of his stake in the Mercedes Formula 1 team to American billionaire George Kurtz. This transaction marks a significant moment in the history of F1 team valuations.
Toto Wolff and the Mercedes Stake Sale
The deal, which results in a valuation of Mercedes F1 at $6 billion (£4.6 billion), is the highest ever recorded for an F1 team. In comparison, McLaren’s valuation in a recent ownership change stood at £3.5 billion in September.
Wolff, who holds a one-third ownership of Mercedes F1 through his holding company, will be selling an equivalent of 5% of the team. From this transaction, Wolff is expected to receive approximately $300 million (£230 million). Despite the sale, he will retain his positions as team principal and CEO, ensuring continuity in leadership.
George Kurtz: New Investor in Mercedes F1
George Kurtz, 55, is the founder of cybersecurity giant Crowdstrike, which sponsors the Mercedes team. His investment comes from personal funds rather than his company’s budget. Kurtz believes the valuation aligns with current market trends, stating that sports valuations are on the rise globally.
Kurtz commented on the investment, saying Formula 1 is at a pivotal stage that showcases tremendous business potential. He expressed confidence that both the sport and team valuations will continue to grow.
Governance and Strategic Input
Although Kurtz will not occupy a position on the main board, he will join the strategic steering committee alongside prominent figures such as Ola Kallenius, the chairman of Mercedes Group, and Ineos chairman Sir Jim Ratcliffe. His role is described as a contributor, allowing for insight and discussion in key team matters.
Wolff’s Endorsement of Kurtz
Wolff has praised Kurtz’s unique background, highlighting his experience in racing and entrepreneurship as significant assets. This combination, he believes, will provide valuable insights for the future of Formula 1.
Growth of Mercedes F1 Valuation
The recent deal illustrates a dramatic rise in the valuation of Mercedes F1, now worth over seven times the £208 million valuation from 2020 when Ineos acquired its stake. The surge reflects the increasing global popularity of Formula 1.
- The F1 film featuring Brad Pitt grossed over $630 million (£482 million) in its theatrical release.
- This film stands as Pitt’s most successful project and the highest-grossing sports movie ever.
Current Season Performance
As the constructors’ championship progresses, Mercedes currently ranks second, with just three races left, starting from the upcoming Las Vegas Grand Prix. Lead driver George Russell has clinched victory in two of the 21 races this season. He ranks fourth in the drivers’ championship, trailing behind Lando Norris and Oscar Piastri from McLaren, as well as Red Bull’s Max Verstappen.
