Mercedes has responded to Liberty Media and the FIA's plans to implement a cost cap for the 2021 season and beyond as "much too low" and "not achievable" for the larger teams.
Liberty presented a five-point plan for Formula 1's future to the teams in Bahrain on Friday. Among the proposals listed was a budget cap and although the exact amount has not been confirmed, it is reportedly around $150 million – less than half of what some of the leading teams currently spend.
Mercedes' chief Toto Wolff described the meeting as "positive", but highlighted the budget cap as an area where the teams will need further discussions and will likely force a compromise with Liberty.
"I think the positive of today is we know what Liberty’s vision is," said Wolff to Sky Sports. "They’ve put it all out, technically, sporting, revenue, governance etc and this is a good starting point for us because now we can properly assess it and say, ‘what do we like, what do we not like, what’s feasible and what’s not’. It’s a starting point."
Wolff insists further discussion is needed to clarify what is and what isn't included in the cap because he doesn't want the structure Mercedes has spent years building up to suffer.
"Well the number needs to be seen in perspective because marketing is excluded, drivers are excluded and lots of other activities, currency exchanges for example," he explained. "There’s lots of activities we do as an OEM [Original Equipment Manufacturer] where we do work for the power unit that is for the benefit of the customers as well.
"So that number is much too low for all the big teams, but we need to work with Liberty to find a compromise because that number will not be achievable, but making something sensible [could work]. We are all living in the same financial reality.
"When you add all the extra bits that are being excluded, you’re probably at a number much higher than $150m, maybe $250m, then it doesn’t look so crazy anymore.
"My utmost priority is protecting our structure, our people. You have to consider we have invested in the sport, we have been here a long time and it’s the same with Ferrari and Red Bull and some of the bigger constructors.
"We need to lay it out and say ‘this is our situation, how can we achieve a success of Formula 1, how can we cap the costs and achieve a sustainable business model without having any hardship on anybody’."
Ultimately Wolff says Mercedes would back the proposals as long as the DNA of the sport isn't changed.
"We have a new shareholder and new management and this is a fantastic platform that has grown over the last 40 or 50 years. The sport has a certain DNA, tradition, culture, almost a soul. As long as we have confidence that this is not changing, good ideas kicking in that will grow revenue, grow the audience and preserve the one we have as well as younger ones, we are in!"
Discussion about this post