Toto Wolff has criticized the amount of new entry fees payable by Cadillac F1 ahead of its Formula 1 debut in 2026.
Although F1 owner Liberty Media eventually, and reluctantly, agreed to let the eleventh team into the sport, existing teams continue to oppose it on the grounds that their share of commercial revenues will be diluted.
Originally, the compensation fee intended to mitigate dilution was $200 million, but teams lobbied for it to be much higher — as much as $600 million, according to some reports.
This is despite the fact that Mercedes F1 boss and co-owner Wolff admits that the Mercedes project is now profitable.
“Thanks to the budget cap and the boom in Formula 1, teams are making money instead of burning it like they did before.”
“We make a real profit. The profitability ratio is 30 to 35% before taxes. This even offsets the engine costs.”
“The old cliché that Formula 1 is just burning money is history. Ultimately, Formula 1 has never been healthier than it is today.”
He admits, however, that he still has concerns about Cadillac’s involvement in F1.
“If they come in now as a manufacturer, investing a corresponding marketing budget in Formula 1, then that represents added value for Formula 1. Cadillac could contribute to the global image of F1.”
But he still affirms that the amount of compensation proposed, in the absence of Concorde Agreements already adopted for 2026-2030, is not sufficient.
“We are losing at the start. We don’t know what Cadillac will invest in Formula 1. The compensation, which currently amounts to $450 million, is too low.”
“This does not compensate for the direct loss of revenue. Only time will tell how much the sport will gain from an eleventh participant. We simply don’t know.”
“No one has talked to me about what exactly Cadillac is planning.”
