McLaren Racing is projected to become the first Formula 1 team to surpass $1 billion in annual revenue, according to a Sky News report. This figure marks a historic financial milestone for the Woking-based squad, further cementing McLaren's status as a major commercial force in the paddock.
The report states that McLaren Racing Ltd's accounts for the 2025 calendar year will be filed this week. Sources indicate the team will declare revenue of £588 million ($779.6 million). While the figures include McLaren's IndyCar operations, F1 activities generated more than 90% of the total income. This underscores the dominant contribution of grand prix racing to the team's financial health.
The financial filings are also expected to confirm a record payout of over £75.4 million ($100 million) for McLaren Racing CEO Zak Brown, compared with a £6 million base salary and a £31 million long-term incentive plan in 2024. Last year's figure is tied 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 at a valuation of £3.5 billion.
In an interview with Bloomberg following the stake sale in 2025, Brown discussed F1's growth. "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," he said.
Brown added that the surge is driven by growing global interest. "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 if he felt valuations of F1 teams had reached their peak, Brown replied: "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."
McLaren also boasts strong commercial appeal. "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."
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