While INEOS is reported to be re-evaluating its sports portfolio, it has downplayed the possibility of a change in its relationship with the Mercedes F1 team.

The Mercedes Formula 1 team is owned by three equal partners – Toto Wolff, Mercedes-Benz AG (Mercedes’ parent company), and British multinational chemical company INEOS.

INEOS’ sports portfolio in the spotlight

INEOS’ ownership stake and sponsorship arrangement with the Mercedes Formula 1 team is understood to be unaffected by a review of the conglomerate’s sports portfolio, of which Mercedes features prominently.

INEOS has been a principal sponsor of the Brackley-based F1 team since the start of 2020, expanding on an existing technical partnership, with chairman Sir Jim Ratcliffe and INEOS then becoming one-third shareholders in the team at the end of the season.

PlanetF1.com understands that Mercedes won’t be affected by the review, with Ratcliffe’s ownership stake having significantly risen in value since buying into the team. Not only is the Mercedes F1 team highly profitable, as Companies House documents detail, but the team itself is worth close to $4 billion according to recent reports.

With the team proving a sound investment, no changes are expected on either the sponsorship front or INEOS’ ownership stake in the F1 team.

“We remain a committed owner and partner to the team and will look to continue our relationship on America’s Cup, which the team were a significant part of for AC37,” an INEOS spokesperson told PlanetF1.com in a statement.

According to a report in SportBusiness, INEOS’ sporting portfolio review is being carried out following a split between Sir Ben Ainslie and Ratcliffe’s INEOS Britannia sailing team ahead of the 38th America’s Cup, as well as reviewing its positions in other sporting ventures in cycling and football.

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The shock split was confirmed this week, following reports of a breakdown in the relationship between Ainslie and INEOS chairman Sir Jim Ratcliffe shortly after their entry into the 37th America’s Cup became the first British boat to contest it in 60 years.

Ratcliffe and Ainslie failed to reach an agreement over how best to proceed for the next America’s Cup, with Ratcliffe having made it public that he did not wish INEOS to be the sole sponsor of the team.

INEOS will compete in the 38th American’s Cup under the same name, with Dave Endean appointed as CEO, while Mercedes F1 will remain heavily involved in providing design and technological expertise under the guidance of technical director James Allison.

In cycling, Ratcliffe’s INEOS Grenadiers team is also seeking to bring in external sponsorship to reduce the £50 million per season burden on INEOS.

CEO John Allert recently said that INEOS “does not want to spend more money” but is committed to cycling for the next World Tour cycle. Cycling expert Johan Bruyneel is quoted as recently saying that Ratcliffe has “grown tired of his toy” as he has sought to reduce expenditure while making no major investments in top talent.

Ratcliffe’s high-profile involvement in British football club Manchester United has also seen him set out on a cost-cutting mission, which has also seen him make the unpopular move to remove Sir Alex Ferguson from his lucrative ambassadorial role.

Ratcliffe holds a 27.7 percent stake in the club, buying in in December 2023, with cost-cutting measures including the sacking of 250 non-playing staff, reducing Christmas bonus payments, and cutting the salaries of high-profile ambassadors Bryan Robson, Andy Cole, and Denis Irwin.

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