Mercedes reveals it has spent around £325million during 2020, but Toto Wolff says the team is “still able to maintain profitability and to meet all financial obligations”.
2020 was the strangest Formula 1 season in history. Due to the COVID-19 pandemic the season started in July and was heavily condensed, with many triple-headers.
The season was also history making, as Mercedes became the only team in history to win seven consecutive constructors’ titles, while Lewis Hamilton tied Michael Schumacher’s seven world titles record.
Mercedes has revealed it has spent £324.939m on its record-breaking title success of last year. Turnover amounted to £355.301m, which means the team’s gross profit was £30.362m, around £25 thousand more than in 2019.
Mercedes’ net profit however was £13.638m, around £1m down from the previous year. However, the value of the Mercedes-Benz brand has grown from $31.9bn in 2013 to $49.3bn in 2020.
“Mercedes-Benz Grand Prix Limited will continue with its principal activities as a Formula One racing team and aspires to win both championships for the eighth consecutive season,” Mercedes team boss Toto Wolff wrote in the report.
“In addition, the company will operate and grow a market-leading Applied Science division, delivering high-performance engineering expertise to new and existing third-party customers.”
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Wolff also talked about the problems the team is facing since the $145m budget cap was introduced in 2021.
“From 2021, the introduction of new financial regulations will enable Formula One teams to achieve financial stability in the years ahead.
“These regulations have required significant efforts to reshape and restructure the organisation to ensure full compliance from 2021 and continue to deliver maximum on-track performance.”
In the end, the Austrian touted Mercedes’ continued profitability.
“Thanks to the range of revenue streams for Mercedes-Benz Grand Prix Limited during the year, the company is still able to maintain profitability and to meet all financial obligations.
“A prudent approach will continue to be taken in regard to possible impacts on the business and contingency plans are regularly reviewed to mitigate effects of the virus on the business.”
“As a high technology business, the team can adapt competitively and commercially to changes in its operating environment and will continue to invest in its capability and culture to ensure medium and long-term success both on and off the track,” concluded Wolff.