Mercedes Formula 1 boss Toto Wolff has revealed whether he will sell further shares of the team following the sale of five per cent to tech entrepreneur George Kurtz.
Wolff sold a £230 million 15 per cent stake in the team, equivalent to five per cent ownership, to Kurtz in the lead-up to the Las Vegas Grand Prix, causing much intrigue.
The sale has seen the value of Mercedes skyrocket once again, now worth an estimated £4.6 billion, as the value of F1 teams continues to prove fruitful in the modern era.
But the sale has also raised questions over Wolff’s future as shareholder and co-owner, with speculation growing that he could step down from his roles in the coming years.
However, Wolff vehemently denied such claims, revealing the details behind the sale, which he said were motivated by the opportunity to buy into the lucrative US market.
“I have no plan to sell the team or no plan to leave my role,” he told media including Motorsport Week.
“I’m actually in a good space and I’m enjoying it and as long as I feel I’m contributing, and others feel that I’m contributing, then there’s no reason to think in that direction.
“What I did this week in my investment holding, I sold some shares to George, who is a racer, who is a tech entrepreneur, who is someone that is going to help us leverage the US market.
“That was the reason behind it and nothing else.”
A shock valuation for the former champions
Commenting on the increased valuation, Wolff believes Mercedes will follow the same pattern as other US-owned American sports outfits that have risen in recent years.
“Yeah, I mean, if someone would have told us five years ago what the valuations would be, we would have never believed it,” he added.
“But it’s a simple ex-calculation of the profitability of the teams.
“Because of the cost cap, our business case changed fundamentally, rather than outspending each other. No matter what, we are simply, you know…protected us from ourselves.
“We were able to increase the revenues and increase the free cash flows. And that put on the marginals that the industry has led us to these valuations.
“Now, when you look at US-American teams, you know, the Dallas Cowboys five years ago were 3 billion, today they are 12.
“Because of the underlying figures that have changed. And that’s why I don’t know where the future leads us.
“If we continue to try to understand what makes a sport enjoyable and entertaining and putting up a great show, then there is no reason that the sport can continue to grow as it is.
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