New data shows Mercedes beating Red Bull in one key area

Thomas Maher
Mercedes and Red Bull racing in the Qatar Grand Prix.

Mercedes and Red Bull racing.

Financial figures released in the UK have revealed that Mercedes’ figures exceed Red Bull’s – by some margin.

The Mercedes F1 team enjoyed a profit of just under £90 million in 2022, generated from a turnover of £474 million, official documents released by the UK’s Companies House have shown.

The financial records of the UK-based F1 teams for the 2022 season are all currently being filed on Companies House, as is required for companies based in the country, with Aston Martin’s finances being logged last week to show a rather large loss for the Silverstone-based team.

Mercedes profits exceeding those of Red Bull

Despite the team’s lack of on-track success in 2022, their filings show that Mercedes generated far more gross profit in 2022 than in ’21 – rising from £85,811 to £123,735.

With administrative expenses dropping by almost £4 million, the team’s cost of sales (ie. the cost of going racing, including the F1 budget cap) rose from £297 million to £350 million.

However, turnover was increased thanks to investments from INEOS, accounting for £42 million, as well as £12.8 million from Athena Racing for co-operative work on the Americas Cup in sailing, as well as sales of just under £10 million to Mercedes-AMG High-Performance Powertrains.

Once taxes are paid – a considerable rise to £23.7 million this year – Mercedes’ profit balances out at £89.7 million, a big increase from £68.8 million in 2021.

The figures for 2023 will not be made available until this time period next year.

On Red Bull’s side, turnover increased to £278 million – an increase of £40 million from 2021 – with pre-tax profits increasing from £8 million to £24.8 million in the year the team returned to winning both titles for the first time since 2013.

Despite their success, after-tax profit was quite small, rising from £700,000 to £2 million from 2021 to ’22. However, profits were badly hit by their entering into an Accepted Breach Agreement (ABA) with the FIA after their breach of the Financial Regulations in 2021, i.e the budget cap. As a result of the fine, the team paid out a total of £6.156 million – eating into their profit margins.

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