Mercedes Near $60 Million‑a‑Year Sponsorship Deal with Microsoft

Mercedes is on the brink of sealing a multi‑year, $60 million‑per‑year partnership with Microsoft – a deal that would rank among Formula 1’s richest sponsorships and signal the team’s growing commercial clout ahead of the sport’s 2026 regulatory overhaul.

Why it matters:

• The partnership underscores Mercedes’ ability to attract top‑tier tech sponsors, reinforcing its financial muscle as F1 moves to a stricter cost‑cap regime.
• Microsoft gains a high‑performance platform to showcase cloud, AI and data‑analytics capabilities to a global fanbase.
• A deal of this size helps cement F1’s reputation as a lucrative arena for multinational brands seeking premium exposure.

The details:

• Announcement expected at Mercedes’ 2026 launch event on 22 January, according to Sky News.
• Reported annual value: roughly $60 million, placing it among the sport’s most lucrative sponsorships.
• Follows the team’s recent partnership with PepsiCo, expanding its commercial portfolio.
• The deal comes after Mercedes was valued at £4.6 billion when 15 % of the team (5 % of the squad) was sold to CrowdStrike CEO George Kurtz.
• Team principal Toto Wolff told Sky Sports F1 that modern F1 teams are now “sustainable and profitable,” ranking among the few most profitable sports franchises worldwide.

What's next:

• Microsoft is likely to activate the partnership through cloud services, AI analytics for performance, and fan‑engagement tools.
• The agreement could set a benchmark for other teams seeking tech‑heavy sponsorships ahead of the 2026 cost‑cap era.
• With a steady $60 million revenue stream, Mercedes can better absorb the financial pressures of the upcoming rule changes while accelerating development on its 2026 car.

If the partnership materialises, Mercedes could lock in a reliable cash flow that cushions the sport’s new financial landscape, while giving Microsoft a high‑octane stage to amplify its technology brand.