Toto Wolff explains £4.6bn Mercedes F1 valuation after ownership shake-up

Toto Wolff says Mercedes are among the top five most-profitable sports teams in the world after selling a stake of his shares in the F1 team.

On Thursday it was confirmed that Wolff has sold 15 per cent of his shareholding in the Mercedes F1 team to American billionaire George Kurtz, the founder and CEO of cybersecurity firm Crowdstrike, which is a sponsor of the Silver Arrows.

The deal values Mercedes at a record £4.6 billion for an F1 team, eclipsing the £3.5bn McLaren were valued at following a change of ownership structure earlier this year.

Wolff, who will retain his roles as team principal and CEO of the Mercedes F1 team, reflected on his stake sale ahead of the Las Vegas Grand Prix.

“I think it shows a good development because the teams have become sustainable and profitable," Wolff told Sky Sports F1.

"It’s not just some valuation that has been taken out of the sky. When you look at our revenues and our cash flows, we are among the five, maybe three most profitable sports teams in the world, and this is where the valuations come from.

“It has been the work of many years and the sport being in a good place.”

As well as becoming part of Mercedes’ ownership group, Kurtz has been appointed as the team’s technology advisor.

"Formula 1 is really at an inflection point where it is a thriving business," Kurtz, who will not be on the main Mercedes board, said.

"If you're making an investment like this, you believe that the sport is going to grow, F1 is going to grow and the team valuations are going to grow, and you're going to be able to contribute to that growth."

Wolff added: "George's background is unusual in its breadth: he's a racer, a loyal sporting ambassador for Mercedes-AMG, and an exceptional entrepreneur.

"He understands both the demands of racing and the realities of building and scaling technology businesses. That combination brings specific insight that is increasingly relevant to the future of Formula 1."