For decades, Aston Martin has been known worldwide as a leading car manufacturer. 2022 they made their return to the Formula 1 tracks after leaving the sport in 1960. Following two unsuccessful seasons, Lawrence Stroll’s 2021 purchase of Racing Point F1 Team gave Aston Martin an opportunity to show its mettle once again.
Now equipped with Mercedes power units and drivers like Fernando Alonso and Lance Stroll on board for 2023, it will be interesting to see whether this team of champions has what it takes to make a profitable season in the world of professional racing.
The question remains: Is the Aston Martin F1 team profitable? In this blog post, we’ll look at some of the key factors that go into determining profitability for a top-flight racing team. From development costs to performance on track – so you can decide for yourself whether investing in an Aston Martin entry could be profitable or not.
Table of Contents
Watch this video to learn more about Aston Martin Factory.
Does the Aston Martin F1 team produce a profit?
The Aston Martin F1 team has recently experienced a resurgence in form; however, due to the competitive nature of Formula 1, it is yet to translate into profitability. The team’s total revenue was reported as $22 million.
Given that Aston Martin lies only ninth in the F1 world constructors’ championship, it is difficult to derive much profit from this income source.
Nevertheless, with a record over the last nine races featuring points scored in eight events, optimism remains that better fortune may be on the horizon.
Key takeaways
- Aston Martin entered Formula 1 racing for the first time in 1959 at the Dutch Grand Prix and has taken part in 50 races since then (49 starts).
- The team uses both Aston Martin and Mercedes power plants as their engine of choice during competition.
- Their best result so far was taking third place at the 1966 British Grand Prix, which is an excellent achievement considering how long they have been involved with F1 racing.
- They have collected 132 points across all their entries to date and achieved the seventh position with 55 points during the 2022 season, which is one of the best finishes ever recorded by them.
- In 2021, Aston Martin was fined $450,000 for breaching the budget cap set by the FIA during that season. They must pay the fine within 30 days and also cover any additional costs incurred by the Cost Cap Ammonisation’s work.
- Despite this financial setback, Aston Martin made a strong showing at that year’s Constructors Championship, coming seventh overall ahead of Williams, Alfa Romeo, and Haas.
- The full name of their F1 team is ‘Aston Martin Aramco Cognizant Formula One Team’, and they are based out of Silverstone in the UK. Their team chief is Mike Krack, while Andrew Green holds the Technical Chief position with them.
- The AMR22 Chassis developed for use exclusively on track gives a further glimpse into what this exciting team can do when given room to maneuver – higher levels of performance despite continued adherence to increasingly stringent regulations from FIA!
Understanding how Aston Martin F1 earns their money
The Aston Martin Formula One team is the most recent incarnation of the previous Racing Point Formula One team. The team has been competing in the F1 Grand Prix series since 2018. Though they have yet to win any major race, they generate considerable income through sponsorship deals and brand partnerships.
In January 2020, Lawrence Stroll invested $238 million into Racing Point, resulting in their rebranding and merger with another F1 team, now known as Aston Martin.
Sponsorship Deals
Aston Martin secures its major source of income through significant sponsorships from international brands who share common values with the F1 team.
Since their debut in 2018 (then named Racing Point), they have attracted large-scale sponsors such as Aramco, JCB, and many others to invest in them financially, providing them with countless opportunities for exposure and recognition on a global scale.
Lawrence Stroll, the executive chairman of Aston Martin, has an estimated net worth of $3.2 billion; this does not include his investments into the organization. This advantageous financial stability provides a means to allocate resources towards vital investments in racing technology and driver acquisition which could benefit both track performance and other operations alike.
Aston Martin F1 Team`s Partner List
Title Partner
- Cognizant
Strategic Partner
- Aramco
Global Partners
- Peroni
- Crypto.com
- JCB
- Sentinel One
- Juniper Networks
- NetApp
- EPOS
- Pirelli
- TikTok
- Socios.com
- Bombardier
- Girard Perregaux
In addition to the above partners, Hackett London, Oakley, IFS, Altair engineering, and OGIO are the official suppliers for the Aston Martin F1 team.
New Driver Acquisition
In order to gain more traction amongst fans worldwide, one way that could increase their performance record is obtaining a new driver for the 2022 season when current German driver Sebastian Vettel retires; which is why recently signed Fernando Alonso will be joining the ranks come 2023 season – fresh out of retirement after winning two world championships himself during his time at Renault back in 2005-06 & 2010-12. It’s expected that he knows what it takes to make changes around the environment necessary to succeed on the track so that he will fit right into this ever-growing organization nicely –also boosting up morale due to its sheer experience compared even against a young talent like Lance Stroll.
Aston Martin secures its major source of income through significant sponsorships from international brands who share common values with the F1 team.
Aston Martin's revenue and profit compared to other F1 teams
The success of Formula 1 teams has always been a fascinating topic. Now, with the introduction of Aston Martin’s works entry, it is even hotter. Last year, most F1 teams managed to break even despite spending up to $450 million on their operations. This kind of success made investors like Lawrence Stroll interested in investing in and buying teams such as Aston Martin.
Aston Martin F1 Profit Margin
Aston Martin F1 had a profit margin of $10-$20 million as compared to its competitors in the Formula One world last year. Aston Martin’s success has been down to cost-efficient practices and effective management techniques. The British-based F1 team was able to increase its profits by cutting costs, making sensible decisions, and wisely managing its resources.
However, this success came with a slight fine from the FIA due to the incorrect submission of expenditures totaling up to $450,000 (£388,000). Despite this small misstep, Aston Martin still manages to remain competitive among other teams by keeping its operations relatively low cost while maintaining high-performance levels on its cars.
Formula 1 Revenue by Team
According to stats, Formula 1 teams generated revenues in excess of 451 million U.S. dollars, with Mercedes earning the highest amount. Aston Martin’s revenue was recorded as 22 million U.S. dollars, far lower than that of its competitors within the same industry. Here is the list of the Formula 1 team’s revenue:
| No. | Teams | Revenue in Million US Dollars |
|---|---|---|
| 1. | Mercedes | 452 |
| 2. | Ferrari | 426 |
| 3. | Red Bull Racing | 327 |
| 4. | Alpine | 195 |
| 5. | Williams | 176 |
| 6. | AlphaTauri | 172 |
| 7. | McLaren | 165 |
| 8. | Haas | 96 |
| 9. | Alfa Romeo | 84 |
| 10. | Aston Martin | 22 |
Frequently asked questions
Is owning an F1 team profitable?
Who owns Aston Martin's F1 team?
Conclusion
Aston Martin’s entrance into the Formula 1 circuit may be a new one but that hasn’t stopped them from making a splash. They have been able to capture the attention of media and sponsors, showing that it is indeed possible to become profitable in this field if you have the right ingredients.
It goes without saying that Aston Martin has delivered results up to its expectations and its success can be attributed to the inclusion of highly talented drivers who know how to show off their speed on the world stage. Financially, Aston Martin F1 revenue reached an estimated 22 million US dollars which help keep their operations running smoothly.
