Today, Sportico has released its latest valuations of the various Formula One teams, which now for the first time sees them collectively worth more than $50bn. This represents a 33% jump over the past 12 months and a whopping 197% increase since 2023.
Further, the report also reveals that of the ten teams surveyed for 2025, seven were in profit, including Haas F1, who made $12m. McLaren, Aston Martin, and Williams, who made losses, were all as the result of a restructure of their assets and debts—an accounting phenomenon.
Since the cost cap was introduced in 2021, the teams’ valuations have soared along with their profits in a period of boom never seen in the nigh-on eight decades of Formula One. The cost cap was finally introduced as the teams feared the extinction of the sport due to Covid-19, and since then the competition has flourished.
Yet the limits on spending have baked in the advantage for the top teams, given their massive pre-cost-cap era of capital expenditure. This is why Williams boss James Vowles was gobsmacked when he left Mercedes to find out about the ageing infrastructure at his new team, Williams.
Decades of underinvestment have left the Grove-based outfit using a massive Excel spreadsheet to track the production and stock of over 20,000 components. Vowles has also calculated that the ageing production equipment means it costs Williams up to 35% more to produce a component than at his old Mercedes outfit.
James Vowles has been campaigning for the teams who have legacy equipment and facilities to be allowed to catch up. He described the current championship at a team principals’ press conference in Singapore as “two-tier.” Further, he warned the bigger teams that if matters continue, sponsors may lose interest and the value of the sport itself could fall into decline.
Power Units, 2026 Form, and the 50/50 Powertrain Debate
Formula One does tend to learn its lessons, even if slowly. For the introduction of the all-new power units for 2026, a grave error from the past was corrected. Manufacturers were not allowed to spend billions on their R&D, as Mercedes had been accused of doing for 2014. A cost cap of $190m was set, along with restrictions on dyno time and testing.
And while Mercedes have won both championships with ease this season, it was mainly due to good early form and a car that had few gremlins. This has been no 2014, where Mercedes dominated with 11 1-2 finishes—a mark of a dominant car/engine. George Russell and Kimi Antonelli have completed just three 1-2s this season, across more races than in 2014.
Since the summer break, Red Bull have come roaring back with ten podiums in nine rounds, together with the fact that during that time Max Verstappen has outscored every other driver. 2026 will be no easy ride for Mercedes with the technical regulations changing little.
Formula One did finally address the elephant in the room this season: the much-criticised 50/50 powertrains. The equal split between the power from the combustion engine and the hybrid was proven a failure, although a super majority couldn’t be found to make the step in a single season.
James Vowles’s “ADUO for Teams” and the Cost-Cap Trap
Now the FIA has slated for discussion what Vowles has dubbed “ADUO for the teams.” At the F1 Commission meeting due to be held on Monday, the matter will be debated at length. Whilst Vowles believes the cost cap has been critical to ensure the long-term financial stability of the teams, he describes what he calls the “cost cap trap.”
Clearly there are large differences in the equipment and other resources available to certain teams, and unless this is addressed it will remain baked in for all time and risk the movement forward of Formula One.
The defence Vowles makes for “ADUO for teams” is based on the system in place for engine manufacturers to catch up should their power units be inefficient. The ADUO reflects a much longer-running catch-up mechanism for the teams further back on the grid. The Aerodynamic Testing Restrictions system has been in place for some years.
This takes the order of the teams in the Constructors’ Championship twice a year and awards those lower down with more wind tunnel time and more CFD allowance. Vowles is proposing something similar for the teams, which would include their ability to spend more capital and upgrade their ageing facilities.
Voting Hurdles, FIA Mandate Power, and What Comes Next
For this to pass through the Commission and be implemented next season, this would require a “super majority,” which means six teams voting for the proposal. Presently just five teams have so far expressed support, including Audi, Aston Martin, Alpine, Cadillac, and Williams.
Alan Permane of Racing Bulls has gone on record stating he does not support the proposal, which will mean neither does Red Bull Racing. Despite the lack of a super majority, with the current level of support the FIA can mandate changes for 2028 without the bigger teams’ agreement.
Vowles also recently revealed that while there is support from the FIA and FOM, the details are not well enough defined for the system to be implemented imminently. Speaking at the recent FIA official press conference in Mexico, the Williams boss admitted: “I don’t think we have an accurate enough direction that we need to take it in, that is right for the sport, which is still being discussed behind the scenes,” he said. “What I can say is the support is there.
“I don’t think it’s going to happen overnight. As I previously mentioned, what I want to make sure is that we get it right by the next regulation change, which is a little way off, so we have some time. But my suspicion on it is you’ll see more and more being discussed over the next few months in that regard.”
It’s inevitable that some form of catch-up mechanism will come into force for the teams further back on the grid, but as is always the case with F1, it’s a question of when.
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The Judge, a nom de plume of an experienced F1 journalist and site founder with long-standing sources across the paddock. With over 30 years of experience in Formula 1 as an insider journalist, I have built trusted connections across the paddock, from race engineers and mechanics to senior team figures. At The Judge 13, I and a handful of trusted colleagues share exclusive Formula 1 news, expert analysis and behind-the-scenes stories you will not find in mainstream motorsport media.
A.J. Hunt is Senior Editor at TJ13, where Andrew oversees editorial standards and contributes to the site’s Formula 1 coverage. A career journalist with experience in both print and digital sports media, Andrew trained in investigative journalism and has written for a range of European sports outlets.
At TJ13, Andrew plays a central role in shaping the site’s output, working across breaking news, analysis, and long-form features. Andrew’s responsibilities include fact-checking, refining editorial structure, and ensuring consistency in reporting across a fast-moving news cycle.
Andrew’s work focuses particularly on the intersection of Formula 1 politics, regulation, and team strategy. Andrew closely follows developments involving the FIA, team leadership, and driver market dynamics, helping to provide context behind the sport’s biggest stories.
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