$150m F1 cost cap “unachievable” for Mercedes

Mercedes team principal Toto Wolff says while he supports the ideas put forward by Liberty Media for the future of Formula 1 he feels the projected budget cap of $150 million as “unachievable” for the German manufacturer.

With the current Concorde Agreements set to expire at the end of the 2020 F1 season, the sport is set for a shake-up from the commercial rights holders after it presented its future visions in a five-point plan.

While Wolff accepts and supports the vision Liberty has laid out for F1, he has shot down the idea of a $150m cost cap given the German manufacturer’s current budget for both its engine factory and team balloons well over $100m more than that figure.

In 2016 the Mercedes F1 team generated a turnover of £289m alone, covering R&D, team operations, engine production and marketing commitments.

“It’s good to have a starting point now, to know what Liberty’s vision is,” Wolff said. “They made it very clear on revenue distribution, on cost cap, on regulations, on engine and it’s a good starting point. All of us went off looking at those numbers and regulations as it’s far enough away that we can enter these discussions open-minded to try and to seek compromise.

“There are things that seem very difficult that they are almost unachievable like a cost cap of $150m. That is, from today’s standpoint, tremendously difficult.

“But it’s clear we are all having the same financial reality. We need to contain costs, there needs to be a downwards slope. So far, I’m very keen to engage in such a discussion.”