Ferrari Snatch Lewis Hamilton’s $3.4 Billion Effect From Mercedes as $100 MN Contract Gets Labeled a Genius Move

Published 02/07/2024, 7:48 AM EST

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Mercedes is unarguably one of the most successful teams in Formula 1 teams alongside Ferrari. They are the only team in the sport’s history of the sport to win 8 consecutive constructors’ championships. And it’s all thanks to Lewis Hamilton who secured 6 driver’s championships between 2014 and 2020. However, the team has lost its dominance since the new ground-effect regulations came into effect in 2022. The team has won only 1 out of the 44 races in the last 2 seasons. And the fact that Lewis Hamilton is leaving the team at the end of the 2024 season to join Ferrari in 2025 will hurt the team even more. According to expert Joe Pompliano, Ferrari’s move to spend $100 million annually on the 7-time world champion is nothing short of a masterstroke.

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Mercedes F1 team witnessed a huge growth in popularity since Lewis Hamilton joined the team back in 2013. During their championship-winning seasons, Mercedes garnered approximately 25% of TV time, boosting Mercedes’ brand visibility and resulting in significant annual monetary gains. However, with Hamilton set to move to Ferrari in 2025, it’s time for the Scuderia to reap the benefit of the Brit’s unmatched global popularity.

Pompliano suggests Lewis Hamilton will help Ferrari boost their valuation significantly.

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The Scuderia has always had a unique way to leverage its Formula 1 team to help the Ferrari brand. Instead of using traditional advertising strategies, Ferrari prioritizes developing a competitive car and securing victories in F1. This strategy has enabled Ferrari to amas significant brand following and demand for their cars, resulting in a global fan base of 400 million individuals. In a recent episode of his podcast, The Joe Pomp Show, Joe Pompliano explained how Hamilton helped Mercedes reach a valuation of $3.8 billion and how his switch to Ferrari will help the Italian manufacturer grow tremendously.

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Pompliano explains, “They [Mercedes] now do $700 million in revenue compared to $200 million when Hamilton arrived. And the team went from losing 100s of millions of dollars every year to an estimated $200 million in profit last year. Now of course there are other factors at play… But still, the results are undeniable. The Mercedes F1 team has seen its valuation increase from less than $400 million in 2013 to 3.8 billion dollars today. That’s an 877% increase… And that’s precisely why Ferrari is going to pay $100 million annually.”

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He added, Lewis Hamilton is going to help them [Ferrari] not only sell cars but help them in all their other businesses too. We’re talking about restaurants, fashion, selling clothes obviously, and everything else alongside that. He is the perfect partner for Ferrari at this stage of his career because he is the most famous Formula 1 driver of all time. He dominates 21st-century digital platforms like Instagram, like Twitter, like everything else and he will instantly attract more people to the Ferrari brand and eventually be worth billions of dollars to the company.

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Hamilton has already had an enormous impact on Ferrari, causing the team’s stock price to skyrocket mere hours after the announcement was made public.

Ferrari saw a whopping $10 billion increase in their valuation with the arrival of Hamilton

The stock market reacted positively to the news of Hamilton joining Ferrari in 2025, with Ferrari’s stock price surging by over 12% following the announcement. This significant increase in stock price is an indication of the market’s approval of the decision, adding a whopping $10 billion to Ferrari’s market capitalization.

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This huge impact is mainly because Hamilton is considered one of the greatest Formula One drivers of all time, often referred to as the “GOAT.” His track record of success, including 103 Grand Prix victories, has solidified his status as a legend in the sport. The recent rise in F1’s popularity in the United States, thanks to Netflix’s F1 docuseries, Drive To Survive, has only helped him gain popularity, which is one of the major reasons Ferrari saw such a huge boost in their stock price.

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Ferrari Saved Lewis Hamilton From Retiring by Fueling “Obsession” to Dethrone Michael Schumacher, Claims Italian F1 Expert

Do you think Lewis Hamilton will help Ferrari get back to the top step of the constructors’ championship right away? Share your insights down below in the comments.

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Written by:

Veerendra Vikram Singh

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"Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma — which is living with the results of other people's thinking." Hi there, I am Veer and I come from a family that lives and breathes football, but somehow I never could fit into that mold.
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Edited by:

Akash Pandhare

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