Sir Jim Ratcliffe lands significant financial boost amid Man Utd takeover bid

10 October 2023 , 16:47

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The Mercedes F1 team's profits soared in 2022 despite the its performance struggles (Image: HOCH ZWEI/picture-alliance/dpa/AP Images)

Sir Jim Ratcliffe took a share of a £75million dividend after the Mercedes Formula 1 team recorded a significant jump in profits.

The team's accounts, filed at Companies House on Tuesday, show a 24 per cent increase in revenues to £474.6m from the 2022 season. Pre-tax profits from the same year rose to £113m compared to around £72m from the previous reporting period.

In its filing, Mercedes-Benz Grand Prix Ltd attributed the increase to "higher commercial revenues from Formula 1, sponsorship and applied science". After tax, the company's profits were reported at £89.7m, up by more than £20m from the previous year.

And the dividend paid to shareholders increased by a similar number. A total of £55.2m was paid out last year in relation to its 2021 financial performance, while in March this year, a £75m dividend was approved.

The team is equally owned by three major shareholders who will split the dividends. The Mercedes car company owns a third, as do director and team principal Toto Wolff and Ratcliffe, through a subsidiary of his Ineos petrochemicals empire.

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In the report, approved by the board on March 29 this year and signed on its behalf by Wolff, the team's directors pledged to "build on the lessons learned during 2022 to deliver improved performance across the season with drivers Lewis Hamilton and George Russell".

It added: "The team is committed to investing in the people and structures that will be required to win the world championships in the years to come, including significant future investment into the Brackley campus."

Ratcliffe's company Ineos owns a third of the Mercedes F1 team (HOCH ZWEI/picture-alliance/dpa/AP Images)

"As a high-technology business, the team can adapt competitively and commercially to changes in its operating environment and will continue to grow its capability. and culture to ensure medium and long-term success both on and off the track."

Ratcliffe, the UK's second richest man, counts the Mercedes team among a significant sporting portfolio which includes football clubs OGC Nice and FC Lausanne-Sport, the Team INEOS cycling franchise and the INEOS Team UK America's Cup sailing team, in partnership with Olympic champion Sir Ben Ainslie.

But for the past year, he has been trying to make Manchester United the crown jewel of that collection. Ratcliffe has been battling with Qatari banker Sheikh Jassim bin Hamad Al Thani for ownership of the Premier League club and is now considering buying a minority stake in the club to finally end the takeover saga.

Daniel Moxon