Toto Wolff, the billionaire behind the Formula One racing team Mercedes, and Sir Jim Ratcliffe, who owns a petrochemicals empire, have received a portion of a £75m dividend from the team that includes racer Lewis Hamilton.

In 2022, Mercedes-Benz Grand Prix saw an increase in income thanks to a rise in sponsorships and their involvement in the America’s Cup sailing championship, despite a less successful season on the F1 circuit.

The British company responsible for the racing team saw a 24% increase in revenues, reaching £475m in 2022. Pre-tax profits also rose from nearly £72m to £113m compared to the previous year.

In March, the company declared a dividend of £75m to its shareholders for its 2022 performance, an increase from the £55m paid in 2022 for its 2021 performance, according to documents submitted to Companies House on Tuesday.

The ownership of the company is divided equally among a company ultimately overseen by Mercedes-Benz AG, the German owner of the car brand, the team principal of the Formula One team, Austrian billionaire Wolff, and a subsidiary of Ineos, which is under the control of Ratcliffe.

According to the Sunday Times rich list, Ratcliffe is the second wealthiest individual in the UK. He owns several sports assets and is allegedly contemplating altering his offer to purchase a small portion of Manchester United.

The financial success of Mercedes highlights the improved well-being of teams in the motorsport industry, which is known to be challenging for smaller companies to make a profit.

The FIA, Liberty Media, and the teams have come to an agreement to implement a cost cap in 2021 for the sport in order to increase competition.

The popularity of Formula One has been enhanced by the emergence of a fresh group of supporters, particularly in the United States, following the triumph of the Netflix show “Drive to Survive.”

Last year, Lewis Hamilton ranked sixth in the Formula One championship, following his close loss to Max Verstappen in 2021. Verstappen achieved a hat-trick of back-to-back championship victories last weekend. Currently, Hamilton holds the third position in the standings this season.

George Russell, Mercedes’ teammate, placed fourth in his first season last year. The team only achieved one victory and one pole position, ultimately securing third place in the constructors championship, trailing behind Red Bull and Ferrari.

Wolff said changes to technical regulations in the sport had led to a “challenging season” and that the “less competitive on-track performance translated into a reduced share of television coverage during the 2022 season”.

However, Wolff said turnover had increased “primarily from higher revenues from Formula One, sponsorship and applied science”. Mercedes’ applied science division, formed in 2019, offers engineering and other services to clients and the company noted its support for Ineos Britannia, the British sailing team that will compete in next year’s America’s Cup.

Last year, Mercedes finalized the purchase of real estate at its Brackley campus in Northamptonshire, located 70 miles northwest of London. The company has a £70 million project in the works to enhance the site, set to finish in 2025.

Source: theguardian.com