The Formula 1 team Aston Martin records a deficit of 61.25 million euros in 2022

The English government has published Aston Martin’s financial statements for 2022 and revealed a loss of 53 million pounds for the previous season – an increase from the deficit already reported in 2021. This loss comes as its revenue has increased by over 32 million pounds due to sponsor payments and race bonuses.

Aston Martin has expanded its activities in F1 since joining the grid in 2021, by building a new factory in Silverstone, whose doors were officially opened last July. It was noted that as of December 31, 2021, the group had committed to investment expenses of £64,985,490 for the development of the Aston Martin F1 Campus.

Operating under the name AMR GP Limited, the figures released this weekend show that AMR GP generated a revenue of £188,728,000 last year, compared to £150,438,000 in 2021. However, the cost of expenses to compete on the grid has increased substantially – £152,046,000 in 2022 compared to £107,735,000 in 2021.

If we include other figures such as administrative expenses and income from government subsidies, its loss amounts to £52,915,000, compared to £43,332,000 in 2021. The company also revealed that it had a staff of 504 employees, of which 81 worked in administration while the remaining 423 worked in design, production, and technology. There was also a marketing contribution of £19,208,000 from the racing team directed towards Aston Martin Lagonda, a decrease of £844,000 compared to 2021.

A problematic deficit?

Making profits for a company, especially a Formula 1 team, is not necessarily necessary. If Lawrence Stroll is the owner of the F1 team, this entity does not have the direct objective of being profitable. Indeed, the objective of the company managing the Formula 1 team is to achieve the best possible results in order to benefit the Aston Martin brand image and the reputation of its owner.

As of December 31, 2022, Aston Martin’s deficit stands at over 60 million Euros and may continue to increase in 2023 without impeding the team’s future or performance.

Debts must simply be able to be paid to the creditors. If that’s the case, the company can continue to be continuously in deficit.

Lance Stroll’s salary

One detail also indicates that AMR GP paid Falcon Racing Services Inc. £1,835,000 to secure the services of Lance Stroll. This amount is £225,000 lower than in 2021, with Falcon having paid £1,125,000 in sponsorship payments last year.

The company also stated that like other F1 teams, it is now expanding its horizons with the newly created Aston Martin Performance Technologies division, which draws lessons from motor racing and applies them to societal issues. It added that the new entity signed its first contract in 2022 and has a strong pipeline of opportunities as part of its future growth plan.

Aston Martin finished the 2022 season in seventh place in the Constructors’ Championship, tied with Alfa Romeo. However, the team made significant progress this season and is expected to see a substantial increase in revenues from F1 and TV coverage in 2023, which will benefit its finances in 2024.