Toto Wolff, director of the Mercedes Formula 1 team, expressed his reservations regarding the $450 million paid by General Motors for the entry of Cadillac, which will become the eleventh team in the discipline. He believes this sum is insufficient to offset the impact on existing teams as the popularity of the sport continues to grow.
This amount paid by Cadillac, set by Formula 1 to compensate the teams currently in place in the face of the dilution of bonuses, is shared between the ten active teams. However, Wolff, who is also a co-owner of Mercedes, argues that a figure approaching $500 million does not cover the financial implications of adding a new competitor.
In an interview with Auto Motor und Sport, Wolff said: “At first we lose. We do not know what Cadillac will invest in Formula 1. The amount of compensation, set at $450 million, is too low. It does not compensate for direct loss of income. »
Wolff argues that the value of Formula 1's expansion depends on the contribution made by new entrants. His opinion remains constant: “Only time will tell what benefit the sport will derive from the arrival of an eleventh participant. If the value of sport increases, then everyone benefits. »
“But we just don’t know yet.” No one told me about Cadillac's exact plans. If Cadillac now enters with an official team and invests an adequate marketing budget in Formula 1, it could be a valuable addition to the sport,” he admitted.
Wolff: We make a good profit
Despite his concerns about entry fees, Wolff acknowledged that Formula 1 had transformed into a financially successful environment, even for teams with big budgets like Mercedes: “We are making a good profit. Our profitability margin is between 30 and 35% before taxes. This even offsets our engine expenses. »
-“The old cliché that Formula 1 is simply a money pit is now a thing of the past. In summary, Formula 1 has never been as financially healthy as it is today,” he added.
Reflecting on Mercedes' 2024 season, Wolff gave a frank opinion on the team's performance, calling it mediocre overall: “The problem is that I never got better than a four in the 'school. I would give this year a four. In the end, everything depends on the championship result, and fourth place is not enough. »
However, he noted significant progress in the second half of the season: “If I had to rate only the second half of the season from July onwards, I would give it a two. We won four races, came close several times and got pole position. If George [Russell] was not disqualified at Spa and we did not crash in Melbourne, we could be in a better position in the championship. »
As Mercedes heads towards 2025, the team faces a major transition with the departure of seven-time world champion Lewis Hamilton to Ferrari. George Russell will lead the team alongside rookie Kimi Antonelli, marking the start of a new chapter for the Silver Arrows.
The challenge is now clear: raise their performance and achieve better “results” as the team adapts to its new composition.
