The Mercedes F1 team spent over £ 324 million to win in 2020

The number represents a slight decrease from the £ 333.2 million spent in 2019. This reflects both a shorter racing calendar and an overall move by the sport to cut costs.

While the total expense includes many items that don’t fall under F1’s new cost cap, it still shows how much the team had to restructure to meet this year’s limit. The cap is set at $ 145 million or £ 115 million for 2021.

The numbers also show that the team got through the 2020 COVID season in surprisingly good financial shape, with sales falling only marginally from £ 363.6m to £ 355.5m.

This small discrepancy shows that although Mercedes, like its competitors, was affected by the general decline in F1 revenues and thus in payments to all teams, it still achieved significant sponsorship income.

The team posted an after-tax profit of £ 13.6m, down from £ 14.7m in 2019.

The figures refer to the cost of running the Brackley racing team only and include a fixed £ 13m fee paid to the HPP department for the use of their engines, the same amount that other Mercedes PU users get numbers.

Despite the impending introduction of the 2021 cost cap, the number of employees at Brackley continued to grow last year from 968 in 2018 and 1016 in 2019 to a record 1063 in 2020. Page a little last year.

In his report on the year, Mercedes F1 boss Toto Wolff stated: “In 2021 the team will continue to develop its financial sustainability by providing maximum competitiveness under the new financial regulations and diversifying and leveraging the team’s skills through applied science and division.”

Mercedes W12 in the garage

Photo by: Steve Etherington / Motorsport Images

Mercedes is pursuing several projects outside of its main F1 business, including cycling and America’s Cup programs related to INEOS, the company announced in December as a third of the team owner. This participation transaction is still ongoing.

Regarding the ongoing impact of COVID-19, Wolff said, “With multiple revenue streams throughout the year, the company continues to be able to maintain profitability and meet all financial commitments.

“A prudent approach to any potential business impact will continue and contingency plans will be reviewed regularly to mitigate the business impact of the virus.”

He added, “As a high-tech company, the team can adapt competitively and economically to changes in its operating environment and will continue to invest in its skills and culture to ensure medium- and long-term success on and off the track.”

Mercedes also made it clear that the F1 program continues to have a positive impact across the company.

The company noted, “In parallel with the team’s success over the past few seasons, the value of the Mercedes brand has grown from $ 31.9 billion in 2013 to $ 49.3 billion in 2020, with F1 making a major contribution on the status of the brand as the eighth largest brand in the EU, Welt is doing. “

The team also pointed out that it received 19.2% of TV coverage over the course of the 2020 season – actually, a 23.6% decrease in 2019 – and generated $ 5.873 billion in accumulated advertising value for its trading partners.