Ferrari Leads F1 Team Valuations as Billion-Dollar Boom Continues

Formula 1 team valuations have exploded, with Ferrari leading the charge at $6.4 billion. The average F1 team is now worth an estimated $3.42 billion, a 48% year-over-year increase, placing them among the most valuable sporting assets globally, just behind the NBA and NFL.

Why it matters:

F1's dramatic financial growth signifies its successful transformation into a premier global entertainment property. This valuation surge, driven by Liberty Media's strategic management, global reach, limited team supply, and cost caps, creates a highly attractive investment environment and reshapes the competitive financial landscape of international sports.

The Details:

• Explosive Growth: The 10 F1 teams on the 2025 grid average an estimated $3.42 billion in value, representing a 48% year-over-year leap and more than doubling their worth since 2023, according to Sportico.
• Global Standing: These valuations now surpass MLB franchises and are closing in on the NBA and NFL, positioning F1 teams among the world’s most valuable sporting assets.
• Prize Money Surge: Teams shared total prize money payments of $1.27 billion in 2024, up from $1.22 billion the previous year. This distribution is based on constructor standings, current F1 revenue, and additional payments for title-winning teams and top-three finishers over the last decade.
• Ferrari's Enduring Value: Ferrari remains F1’s most valuable team at $6.4 billion, benefiting from a historical bonus that adds tens of millions of dollars annually.
• Top Teams: Mercedes follows at $5.88 billion, and McLaren has seen the biggest surge, skyrocketing by 203% in two years to $4.73 billion.
• Red Bull Slips: Despite substantial growth (79%), Red Bull's valuation of $4.32 billion has slipped behind McLaren.
• Mid-Field Strength: Williams, acquired for approximately $200 million in 2020, is now valued at $2.14 billion, while Alpine ($2.08 billion) and Racing Bulls ($2.05 billion) also exceed the $2 billion mark. Racing Bulls reportedly even declined an offer in that range.
• Future Players: Sauber (soon to be Audi) sits at $1.88 billion, and Haas rounds out the grid at $1.68 billion, a figure that would have been among the elite just a year ago.

The big picture:

The scarcity of teams (only 10, soon to be 11 with Cadillac in 2026) and rare control sales are powerful economic drivers, with nearly every team reportedly receiving weekly investment offers. The market's confidence is further bolstered by predictable cost structures due to the budget cap, a booming global fan base of 827 million, and lucrative broadcast deals like Apple's $750 million agreement starting in 2026. F1's growing appeal to younger and female demographics also significantly enhances its sponsorship potential, transforming it into one of the world's most desirable assets for investors.

What's next:

The gold rush for F1 investments shows no signs of slowing down. As F1 continues to expand its global footprint and solidify its financial stability through strategic management and robust fan engagement, team valuations are expected to climb further. The ongoing demand for team ownership and the consistent influx of capital suggest a sustained period of prosperity for the sport, reinforcing its position as a top-tier global entertainment and investment property.