Mercedes reaping rewards on and off the F1 track

Tue Oct 4, 2016 8:16am EDT
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By Alan Baldwin

LONDON (Reuters) - Formula One world champions Mercedes are reaping the financial rewards of their track dominance, according to the team's latest accounts.

Figures published by Mercedes-Benz Grand Prix Ltd on Tuesday showed a loss after tax of 22.3 million pounds ($28.50 million) in 2015 from a previous 76.9 million with the team remaining on course to break even.

Turnover grew by 66.3 million pounds thanks to additional sponsorship revenues and more money from the sport's commercial rights holder as a result of the team's improved 2014 performance.

Mercedes said their agreement with the commercial rights holder meant revenue flows based on sporting performance would be "significantly increased" from 2016 onwards as a result of their track dominance.

"The future outlook for sponsorship revenues is also very promising," the team added.

Turnover, which does not include any contribution from majority shareholder and Mercedes' parent Daimler, has grown 86 percent since 2011 - a current 213 million pounds compared to 115 million.

Operating costs rose by 8.1 million pounds, or 3.5 percent, mainly due to inflationary increases in salary costs.

Mercedes said that as of Dec. 31, the company had negative net liquid assets of 130.1 million pounds, compared to 90.1 million in 2014, with net liabilities of 109.3 million (vs 87 million).   Continued...

Mercedes driver Nico Rosberg of Germany leaving pit lane after changing his tires during a pit stop while competing the Malaysian Formula One Grand Prix at the Sepang International Circuit in Sepang, Malaysia, Sunday, Oct. 2, 2016. REUTERS/Joshua Paul/Pool