The Mercedes motor racing team from the sport’s iconic Formula 1 (F1) competition has become the first F1 outfit to secure annual turnover of more than £500 million ($623.4 million).

The Mercedes-Benz Grand Prix company which oversees the team has now posted turnover of £546.5 million for the 12 months up to December 31, 2023.

The equivalent 2022 figure was £474.6 million, as a contrast.

No F1 team has ever recorded a turnover of over £500 million before – Red Bull, who have won the last two constructors’ championships and for whom Max Verstappen has won the last three drivers’ championships, had 2022 turnover of £385.6 million.

Mercedes cited increased revenues from sponsorship as part of the reason for this increase, with the team having struck deals with seven new commercial partners during 2023. New sponsors included Qualcomm and Sherwin-Williams.

However, despite this record-breaking revenue figure, Mercedes saw a slight dip in overall profit, down from £89.7 million in 2022 to £83.8 million last year.

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The team has put this minor drop down to increases in both operational costs (increased staffing levels have led to a rise in salary costs, for example) and also tax liabilities.

Earnings before interest and tax (EBIT), meanwhile, remained stable, coming to £113.8 million last year as compared to £113.6 million in 2022.

Mercedes finished second in last season’s constructors’ standings (out of 10 teams), and currently sits fourth in this year’s edition.

Last July, Forbes valued the Mercedes team at approximately $3.8 billion.

In terms of 2024 financials, the F1 team has said these are likely to be affected by the development of its facilities in Brackley, England, which received planning permission in January.

In mid-January, it was revealed that Mercedes F1 team principal and chief executive Toto Wolff had agreed to remain at the helm of the organization until the end of 2026.

The 52-year-old has been at Mercedes since January 2013 and owns around one-third of the team. Ownership of the outfit is equally split between Wolff, the Mercedes-Benz automotive giant, and a subsidiary of the Ineos petrochemicals company (which took its stake in early 2020).