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Mercedes F1 team declared a £546,500,000 turnover for the year 2023, showcasing an increase of £71.9 million from the previous year, becoming the first F1 team in the sport's history to cross £500 million.
Mercedes-Benz Grand Prix Ltd, owner of the F1 team, declared this whopping turnover despite the weak performance throughout the season. Although they were runner-ups in the championship, a slight decline in performance could be seen throughout the season.
Despite the increase in the turnover, their generated profit was 6.57% less when compared to 2022. In that particular year, the team had generated £89.7m in profit, whereas, it was £83.8 million in 2023.
There were many factors contributing to this. Mercedes noted that the cost cap, regulated by the FIA, had a positive effect on the team's spending, and the increase in the staff working at the team from 1114 to 1289 made a difference.
The team also revealed in their statement that the television coverage had declined because of the smaller number of podiums they had throughout the Formula 1 season, but they grew positively on social media.
"The team’s share of television coverage showed a small decline to 14.7% for 2023, reflecting the lower number of podium finishes the team enjoyed versus 2022," read Mercedes report.
"The cumulative Advertising Value Equivalent (AVE) remained strong for commercial partners and shareholders, at $5.3 billion. The team continued to grow strongly on social media, with a cumulative followership of 36 million (+15%) and a total of 465 million engagements (+9%)."
Mercedes' struggles continue despite £11m increase in car development
The Brackley-based outfit has suffered since the introduction of the new aerodynamic regulations in the 2022 season. Their domination came to a brutal end with only one win since that year.
With the issues in the W14 persisting, the team spent a whopping £11 million more on W15's development. It was supposed to be a major improvement on the previous car since the issue with the design concept had posed a major weakness for the team.
However, Mercedes has had the worst start to a season in over a decade, even with a modified design. They currently stand fourth in the championship, and Aston Martin behind them is only one point shy of taking the spot. It is hard to speculate if they will be able to battle at the top for the rest of the season.
Lewis Hamilton, who has raced with the team since 2013, will leave Mercedes and race for Ferrari from the 2025 season. One of the primary reasons for his move is analyzed as the poor state of his current team.
