Key Highlights
- McLaren Racing is projected to become the first Formula 1 team to exceed $1 billion in annual revenue.
- McLaren’s 2025 accounts are expected to show revenue of £588 million, with Formula 1 generating more than 90% of the total.
- CEO Zak Brown is expected to receive a record payout of more than £75.4 million, linked to a share award following McLaren Racing’s corporate buyout.
McLaren Racing Set to Report Record Revenue
McLaren Racing is projected to become the first Formula 1 team to surpass $1 billion in annual revenue, according to a report by Sky News. The Woking-based organization is expected to file its accounts for the 2025 calendar year this week.
Sources cited in the report indicate that McLaren Racing Ltd will declare revenue of £588 million ($779.6 million). The figure includes McLaren’s IndyCar operations, although Formula 1 activities are expected to account for more than 90% of the company’s total income.
The expected results would place McLaren among the clearest financial beneficiaries of Formula 1’s recent commercial expansion. The team’s projected revenue is still below the equivalent of $1 billion, but the report identifies McLaren Racing as being on course to become the first F1 team to cross that annual threshold.
Zak Brown’s Expected Record Payout
The filings are also expected to confirm a record payout of more than £75.4 million ($100 million) for McLaren Racing CEO Zak Brown. That figure compares with Brown’s £6 million base salary and a £31 million long-term incentive plan recorded in 2024.
Brown’s 2025 payout is linked to a share award triggered by McLaren Racing’s corporate buyout. Bahrain’s Mumtalakat sovereign wealth fund and Abu Dhabi’s CYVN Holdings acquired the remaining 30% of external shares in McLaren Racing at a valuation of £3.5 billion.
Brown discussed Formula 1’s growth following the stake sale in 2025 during an interview with Bloomberg.
“The sport is on fire, you know, every metric, demand for teams. It wasn’t long ago that Liberty [Media] acquired the sport and put a cost cap in place, which kind of ensured everyone’s financial stability and on-track stability and competitiveness.
Advertisement“So it’s been a wonderful thing. The fans are coming out in the tens and hundreds of millions, sponsors, partners in the sport, unlike we’ve ever seen before, so the sport is on fire, and long may it continue.”
When asked whether he believed Formula 1 team valuations had reached their peak, Brown said:
“I don’t think so. I think if you look at sports in general, and I wouldn’t say I’m an expert at all sports by any means, but they’ve only been going north forever. Every time there’s a record deal and whatever sport it is, everyone goes, ‘Oh, that was crazy’.
“And then you look back and in five years, they’ve still gone up. So I think our sport in particular has a lot of room for growth. We have 24 races, we have demand for probably 30 grands prix, so the demand is strong.
“Our car has the best brands in the world, the Mastercards, the Googles, etc. The competition is amazing. Last year, four teams won, seven different drivers won multiple races.
“It’s the first time I’ve seen that in my 30 years of following the sport, so the on-track competition is great. The off-track drama, as captured by Netflix, is fantastic. The demand for grands prix has never been stronger, so I think the sport, in many ways, is just getting going.”
Why This Matters
McLaren Racing’s expected financial performance highlights the growing commercial scale of Formula 1 under Liberty Media’s ownership and the cost-cap era. Zak Brown linked financial stability, competitive balance, sponsor demand and audience growth to the sport’s broader expansion.
The team’s expected revenue also reflects the importance of Formula 1 to McLaren Racing’s business. Although the accounts include the IndyCar operation, F1 is projected to generate more than 90% of total income. Brown also pointed to demand for more races, strong sponsorship interest and increased on-track competitiveness as indicators that Formula 1’s commercial growth may continue.
The expected accounts will provide the formal financial details for McLaren Racing’s 2025 calendar year, including the reported revenue and Brown’s payout following the completion of the corporate buyout.
Frequently Asked Questions
What revenue is McLaren Racing expected to report?
McLaren Racing is expected to report revenue of £588 million ($779.6 million) for the 2025 calendar year. More than 90% is expected to come from Formula 1 activities.
Why is Zak Brown expected to receive more than £75.4 million?
The reported payout is linked to a share award triggered by the corporate buyout in which Bahrain’s Mumtalakat sovereign wealth fund and Abu Dhabi’s CYVN Holdings acquired the remaining 30% of external shares in McLaren Racing.
What did Zak Brown say about Formula 1’s future growth?
Brown said he does not believe Formula 1 team valuations have peaked. He cited demand for more grands prix, strong sponsorship, growing audiences and competitive racing as signs that the sport still has room to expand.
