Formula 1 is an expensive, exclusive and - to the likes of Andretti, at least for the time being - an elusive club. You think F1 teams, you think money - and why wouldn’t you? Global recognition, blue-chip sponsors, luxury brands and home to the fastest drivers on the planet..
. it must all add up. But do all of those assets equate to cold, hard cash? The Dallas Cowboys have just become the first team in history to top a worth in excess of $10billion, with the NFL home to several other franchises who come close to passing the same mark.
To put that into context, its value of $10.32bn could get you Ferrari , Mercedes and Red Bull and still leave over £2million spare. All F1 teams now turn a profit, regardless of their position in the pitlane, and that is a tell-tale sign that the series is in rude health - gone are the days of the backmarkers’ begging bowls, with values on the rise across the grid.
Take Williams as a fine case in point, the once family-run team was sold to US investment firm Dorilton Capital in 2020 during a run of three successive seasons in which it finished bottom of the constructors’ championship. The fee commanded to complete the deal was $200m, whereas today’s estimated valuations put Williams around the $725m mark - despite little improvement in on-track displays. However, results are not a sure-fire way to boost the worth of a team; sporting success is not a prerequisite for business performance.
Matthew Savage, Chairman, Dorilton Capital, Paul.