Wolff’s power at Mercedes will not be diluted despite stake sale

Team principal role and voting power will be unaffected if CrowdStrike chief executive George Kurtz buys 5 per cent share in F1 team — valued at record £4.6billion — from the Austrian

Toto Wolff’s power at Mercedes will not be diluted if he completes the sale of part of his stake in the team, for which talks are at an advanced stage.

As first reported by Sportico, the Austrian team principal is in discussions to sell part of his 33 per cent share in Mercedes F1. It is understood that the proposed buyer, George Kurtz, the CrowdStrike chief executive, would take about 5 per cent, a figure that would value the team at $6billion (about £4.6billion), a record.

Crucially, it is understood that Kurtz would be part of the holding company that owns Wolff’s stake, meaning areas such as voting power would be unaffected. Wolff, Ineos (founded by Sir Jim Ratcliffe), and Mercedes-Benz each owns 33 per cent stakes. CrowdStrike is already a Mercedes partner.

Wolff will remain as both team principal and chief executive officer of Mercedes, so this transaction is understood to be purely financial.

A Mercedes statement said: “We will be making no comment on this. The governance of the team will remain unchanged, and all three partners [Mercedes-Benz, Toto and Ineos] are fully committed to the ongoing success of Mercedes-Benz in Formula 1.”

Ratcliffe’s Ineos bought its stake for £208million in 2022 and its huge rise in value since is undoubtedly one reason why the chemical company has continued its investment in F1, while withdrawing from other sports, such as sailing.

Wolff held a 30 per cent stake in Mercedes from 2013, before increasing to 33 per cent in December 2020.

The huge valuation of Mercedes reflects the growth of the sport as a whole. Mercedes are second in the constructors’ championship, with their customer team McLaren having already claimed the title.

The sport has grown under the management of Liberty Media, the US company which has transformed the demographic of fans, making F1 popular with more women and younger age groups.

The F1 movie released last summer grossed more than £458million at the box office worldwide, and has proved popular in growing markets such as the United States and Asia.

As The Times reported last month, even the smallest F1 teams are thought to be worth about £1.5billion. That continued growth means it is relatively rare to have the opportunity to invest in it — those already existing within the sport have little reason to sell shares given their belief they will continue to rise in value.

Credit: https://www.thetimes.com/sport/formula-one/article/toto-wolff-mercedes-sale-shares-f1-hrkmfmwvx?utm_source=chatgpt.com