Mercedes reveal how much they have had to spend to sustain dominance

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Mercedes Benz Formula One team have revealed the massive cost of winning the Formula One drivers and constructors' titles in 2017, with the total cost of over £300m for the season, representing a huge increase year-on-year from 2016.

The Silver Arrows have become the powerhouse team in Formula One having won the Drivers and Constructors titles in every since the turbo-hybrid era was introduced in 2014, with Brit Lewis Hamilton claiming four drivers titles, and German Nico Rosberg taking one in 2016, before retiring.

This huge success could be down to Hamilton’s surprise move from McLaren in 2013, which has proved to be one of the greatest team swaps in the history of the sport.

With McLaren and Lewis battling for drivers titles with the dominant Red Bull and Ferrari at the time, while Mercedes were just a mid-table team, the decision made by the Stevenage born superstar was scrutinised by many.

The £309.7m spend by Merc isn’t the total cost of the dominance, however, with that figure only accounting for the R&D, building of the cars and the running costs associated with building a team capable of dominating the sport.

According to F1i, this figure excludes all funds used by Brixworth HPP engine department of the team, who are tasked with building the 1.6 turbo hybrid engines.

Parent company Daimler AG supplied £60m of Mercedes' total budget spend in 2017, proving that it isn’t just the Mercedes Benz Formula One team who foots the bill for success.

The team's total revenue as a whole increased dramatically on the season before, increasing by 16% to £337.2m year-on-year from 2016. Since 2012, the year the German outfit agreed to sign Formula One megastar and now four-time World Champion Hamilton, its revenue has increased by 194%.

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This increase in revenue is down to a number of things, but the popularity and fame of Hamilton, as well as his on-track success, will have played a huge part in the growth of the outfit.

The team’s headcount at its Brackley headquarters has also increased with the success of the team, with the German manufacturer employing 849 people during the 2016 season. This figure increased to 912 in the 2017 season.

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The cost of winning the title seems very high on first sight, but Mercedes have been one of the big winners in regards to TV exposure and the benefits that come with that.

During the 2017 season, Mercedes garnered 24.7% share of TV coverage, representing an advertising equivalent of £3.4b for the team and its associated partners and sponsors.

With Toto Wolff’s team looking likely to win another drivers and constructors title double in 2018, the Silver Arrows' revenue looks well set to increase for another year.

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