Teams making money

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proteus
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Joined: 13 Feb 2015, 14:35

Teams making money

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I have seen that there are some of the people here that are in some kind of touch with employees from actual teams. So there is one thing that is making me a bit curious and that is how much money teams manage to make with selling their merchendise.

If anyone has atleast an estimation for any team, it would really make my day to hear some numbers, just to give me some closure for my thoughts :) I was surfing a bit trough the official online stores of Mercedes and Mclaren and i was surprised that Mclaren has 10 times more casual stuff up for sale than Mercedes has.

Is it enough to cover 1/4 of a budget, is it more?
If i would get the money to start my own F1 team, i would revive Arrows

NL_Fer
NL_Fer
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Joined: 15 Jun 2014, 09:48

Re: Teams making money

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I think it is just enough to pay for the clothing the team employees use in a year.

Jolle
Jolle
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Joined: 29 Jan 2014, 22:58
Location: Dordrecht

Re: Teams making money

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I think it's a bit more complicated than just that. My guess is that the Puma teams have a good deal with Puma that just pays them a fix sum each year. Plus, it's also part of other sponsor contracts. You don't just sell, for instance, the place on the side of a RedBull car but also on the chest of half of Holland at the moment.

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El Scorchio
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Joined: 29 Jul 2019, 12:41

Re: Teams making money

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How much money they make from team to team will completely depend on what deal(s) they have with the companies who make their branded items, how many they sell, and how much the mark up is. It probably varies wildly from the big three who will make a fortune to the small teams who probably don't make that much.

I've always thought the mark up on all F1 related clothing is pretty scandalous. Caps for well over £30-40, T-Shirts for £60, button up shirts or light jackets for £100 and so on, so I imagine they are making some decent coin from it. You only have to look at the amount of people in Ferrari, MB or RBR gear in the crowd every race weekend to see how much they must make, just in caps or t shirts.

Let's do some really rough calculations. If 140,000 fans were at the British GP 2021 and 1/4 had a MB or Hamilton cap on, which I think are about £40, that's 1.4 million total spend. just on MB caps. Slice up that however you want it-F1 gets a cut, the manufacturer gets a cut, production and shipping costs and a few other things also- the team probably makes out very handsomely. Or let's say 3/4 of the Dutch crowd wearing Verstappen caps at say €45, that's about €2.4m. (Not that I'm assuming they will ALL have purchased them that weekend, but they will have purchased them at some point.)

I'd be curious to see just how many caps in total per year each team sells. I expect some of the numbers are eye watering.

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Zynerji
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Joined: 27 Jan 2016, 16:14

Re: Teams making money

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I have bought lots of merch over the years. F1 stuff must not be for big guys, as nothing fits well. The red Ferrari Puma shoes I bought in size 12 looked like I wrapped an American football around my foot.

I would like to see some Viking sized merch out of Europe for once...🙄

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Stu
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Joined: 02 Nov 2019, 10:05
Location: Norfolk, UK

Re: Teams making money

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I used to like going through the ‘old stock’ at Goodwood FoS.
Perspective - Understanding that sometimes the truths we cling to depend greatly on our own point of view.