Mercedes AMG F1: Sponsor and shareholder, Ineos, questions its involvement

Ineos, specialized in chemicals, petrochemicals, and polymers, has been heavily involved in sports for several years: besides its partnership with Mercedes F1, Ineos has committed to cycling, sailing, and football teams. However, the trend of its investments in sports, particularly F1, is declining.

Important partner of Mercedes-AMG Petronas F1 Team

Ineos is presented as the main partner of the team on its official website. Ineos is an important shareholder of Mercedes F1, holding no less than one-third of the team. Toto Wolff and Mercedes-Benz each own the remaining two-thirds in equal parts. Therefore, Ineos is not just a sponsor, but also a shareholder. The company can also finance the F1 team to gain visibility, but the sole profits of the Mercedes AMG F1 Team allow Ineos to reap significant dividends. Last year, Mercedes declared having generated more than 90 million euros in profits over 2023, a portion of which is thus given to shareholders. More than enough to make the investment profitable.

The original arrangement

Ineos signed a five-year sponsorship contract at the beginning of 2020, before acquiring shares in the team. Since the agreement was due to expire, negotiations were conducted. The Telegraph contacted Ineos to obtain information on the exact duration and nature of this contract, but for now what we know is that the company’s name has disappeared from the top of the engine cover, but remains clearly visible on the inside of the wings. The red that allowed recognizing the sponsor has also disappeared.

Tense negotiations

According to an article from the Telegraph, the partnership almost came to a complete end: « According to Telegraph Sport, Mercedes-Benz, the German car company that owns a third of the F1 team alongside Ineos and Toto Wolff (director of the Mercedes F1 team), had even sought funding to buy Jim Ratcliffe’s shares. However, the British billionaire ultimately changed his mind and reaffirmed his commitment to the sport. »

However, a Mercedes F1 spokesperson also assured the Telegraph Sport that this partnership was continuous and stable and denied seeking other funding, specifically for a potential purchase of Sir Jim Ratcliffe’s shares, CEO and founder of Ineos. Nonetheless, the spokesperson confirmed that the Ineos brand would be less visible on the car this year.

Toto Wolff also denied the possibility of a separation between Mercedes F1 and Ineos: « That has never been considered. Jim Ratcliffe is part of our trio – Mercedes, Jim, and me. We will never split. He has been an excellent sponsor, and we have undertaken projects together. Nothing you read in the press will change that », he assured to Sky Sports News at the season launch event.

The reasons for this decline?

The firm Ineos mentions high energy costs and extreme carbon taxes to justify its withdrawal from Europe. Generally, Ineos now prefers to invest in places like the United States, as Brian Gilvary, Chairman of INEOS Energy, wrote in December 2024.

Fitch Ratings downgraded the financial situation of Ineos in an end of January report. The rating agency explains that this shift from stable to negative reflects a reduction in financial flexibility and delays in debt reduction. It is therefore not surprising that Ineos is revising its priorities and withdrawing from certain sponsorship associations.

Comparison 2024-2025

The name Ineos is clearly visible in 2024, especially on the engine cover.

Ineos has disappeared from the engine cover: this part of the car is void of a sponsor. Ineos is not entirely absent from the car, appearing on the inside of the front wing.