There’s no doubt that Formula 1 is an expensive sport, but McLaren’s Zak Brown finds it hard to accept that F1 teams aren’t rated as highly as the NFL.
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However, the American CEO believes that with the support of Liberty Media, Brown believes that the teams on the starting line-up can grow financially and their rating can potentially match the NFL teams.
Zak Brown wants F1 teams to have the same rating as NFL teams
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Formula 1 teams spend a lot of money throughout the season. As a result, Brown has a hard time accepting that they aren’t as big as American football teams. In 2020, a deal was agreed between the Woking-based team and MSP Sports Capital worth £ 185 million that can grow by up to 35%, bringing the valuation to £ 550 million.
When asked by The Race, Brown said, “There are many sports franchises, NFL, MLB, NHL, Premier League, NBA, etc. that are worth billions.”
Formula 1 F1 – Bahrain Grand Prix – Bahrain International Circuit, Sakhir, Bahrain – March 26th 2021 McLaren CEO Zak Brown during the FIA / Handout via press conference
“When you look at the size, scale and importance of Formula 1 compared to these other leagues, you kind of scratch your head and leave, why are some of these teams worth more than McLaren, Mercedes or Red Bull?” Concluded Brown.
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Stroll and Wolff try to understand Brown’s point of view on the evaluation of F1 teams
It’s not just the McLaren boss who compares Formula 1 to other sports. It’s also the Aston Martin team owner, Lawrence Stroll, and Mercedes boss Toto Wolff trying to understand Zak’s perspective.
Stroll said, “Ten years ago an NFL team was worth a billion dollars. You can’t buy a franchise for less than four or five billion dollars today. “
While Wolff said, “NBA teams or NFL are something I understand better, the ratings are a mere result of sales and bottom line numbers,” Wolff said when asked by The Race what a billion dollar rating is in real terms would mean. “
Formula 1 F1 – Monaco Grand Prix – Circuit de Monaco, Monte Carlo, Monaco – Mercedes Executive Director Toto Wolff at the FIA press conference FIA / Handout about REUTERS
“So as a business case itself it’s very attractive because you can easily discount future cash flows and I think if we get to profitability you can use the same valuation metrics as your peer group. So I agree with Zak. It’s up to our own revenues and profits. “
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How will the introduction of a budget cap for sport affect teams’ spending? Let us know what you think in the comments below.
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The post “Scratch Our Head” – Mercedes and McLaren F1 Bosses Confused About NBA, NFL Billion Dollar Difference first appeared on monter-une-startup.
