Mercedes executive director Toto Wolff says a mooted cost cap of $150 million for Formula One teams in 2021 is “not achievable” but is close to being realistic.
Wolff told Sky the suggest cap would not apply to some significant cost areas.
“The number needs to be seen in perspective because marketing is excluded, drivers are excluded, foreign currency exchanges are excluded [and] lots of other activities,” he said.
“Obviously there’s lots of activities which we do as an OEM [original equipment manufacturer] where we do work for the power unit that is for the benefit of customers as well.
“So that number, per se, is much too low for the big teams. But if you look into the detail I think we need to work with Liberty and find a compromise. That number will not be achievable. But maybe something sensible, we are all living in the same financial reality.”
Mercedes is one of Formula One’s biggest teams and would be among those hardest hit by a cost cap. But Wolff said the realistic impact of the cap would not be as high as it first appears.
“I think when you add all the extra bits that are being excluded you are probably at a number that is much higher than 150. Probably 250. And then it doesn’t look so crazy any more.
“But my utmost priority is protecting our structure and our people. We have to consider that we have invested in the sport, we’ve been here for a long time. Same with Ferrari and Red Bull and some of the bigger structures.
“You just need to lay it out and say this is our situation, how can we achieve a successful Formula One, how can we cap the costs, how can we achieve a sustainable business model without having any hardship on anybody.”
2018 F1 season
- Honda’s jet division helped F1 engineers solve power unit problem
- McLaren Racing losses rise after Honda split
- Ricciardo: Baku “s***show” was Red Bull’s fault
- “Drive to Survive Episode 1: All to Play For” reviewed
- F1’s television and social media audiences rose last year