The cost cap introduced in Formula 1 has transformed various aspects of the sport. With an upper limit for the development of a car, the consistency of a season and thus the value of the teams increases. With Mercedes already at the top of the table, Toto Wolff makes an interesting statement about the value of Mercedes.
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In a recent interview with AMUS, Toto Wolff was asked about the value of Mercedes. Wolff replied, “I don’t want to give numbers, but I think we’re getting closer to the ratings of the American NBA and NFL teams. We write profits clearly and with that it is possible to estimate how they will be valued.”
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Although Mercedes is way ahead of the rest in terms of value, Wolff reckons with two teams approaching the stadium. “I think Ferrari and McLaren will be next. That increases the credibility factor of the whole series.”
Wolff also argued that the cost cap keeps the gates closed at 10 teams; This also preserves the credibility of the sport. “The advantage of the cost cap is that every newcomer knows what they are getting themselves into. He knows that no one can spend more than $145 or $140 million… Nobody used to know how much money it would cost to compete against Ferrari, Red Bull or Mercedes.”
Toto Wolff explains the victims of Mercedes under the cost cap
While the cost cap is broadly positive for Mercedes, the Brackley team had to cut corners in the 2021 season. Looking back on his first season with the cap, Wolff expands on Mercedes’ response to the cap.
Formula One F1 – Abu Dhabi Grand Prix – Yas Marina Circuit, Abu Dhabi, United Arab Emirates – December 10, 2021 Mercedes’ Lewis Hamilton during practice REUTERS/Hamad I Mohammed
“We had to carry out a restructuring that not only affected people, but also had to change essential processes.” As a result, Wolff had to upgrade his staff. “For the first time, we had to train financial engineers to identify cost savings along the entire value chain.”
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Although Mercedes thrived regardless of the limit, the team initially protested the rule. Now Wolff believes that the sport will become more harmonious. “The whole thing has degenerated into an arms race between Red Bull, Ferrari and us. Everything is more balanced now.”
Formula One F1 – Brazilian Grand Prix – Jose Carlos Pace Circuit, Sao Paulo, Brazil – November 14, 2021 Mercedes’ Lewis Hamilton and Red Bull’s Sergio Perez during the race REUTERS/Ricardo Moraes
The main goal of the budget was to bring the grid closer together and make the game relatively equal for all teams. The Austrian states that this idea will be successful. “I think that in the future there will be five or six teams fighting for victory. That’s good for the sport. It’s not always the same team that wins the Super Bowl.”
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Looking ahead, the 2022 season with its new regulations should further level the playing field. Will Mercedes’ stable position at the top be threatened or will the eight-time champions tighten their grip on their F1 dominance?
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