Wolff defends F1’s $200 million fee for new teams

Toto Wolff has defended Formula 1’s $200 million fee for any new entries wishing to join the grid from 2021, believing it gives the existing teams “franchise value”.

Wolff defends F1’s $200 million fee for new teams

Following the signing F1’s new Concorde Agreement by all teams last month, McLaren Racing CEO Zak Brown revealed on Saturday there was a new fee that any incoming teams now had to pay to join the grid.

The $200m sum is intended to give the existing teams some protection over their revenues, as any incoming outfit would create a dilution of the revenues which would be split between more than 10 teams.

Mercedes F1 chief Wolff echoed Brown’s thoughts on the protection that it would offer the existing teams, saying it provided franchise value to those already racing.

Asked by Motorsport.com if he believed it would put off any new teams joining F1, Wolff replied: “No, on the contrary, I think it’s very important. It sets a floor for team valuation.

“Obviously it’s in the discretion of the commercial rights holder to decide otherwise if we are less than 10 teams, but I think such franchise value is completely normal.

“It should be limited to 10 teams. It is something special, to have an entry into Formula 1.

“That is valid for most of the professional sports leagues.”

Read Also:

It is hoped the move will deter failed F1 projects - such as USF1 in 2009 - from trying to join the grid, and ensure only serious parties lock to move into the series.

Haas was the latest team to join the grid back in 2016, raising the number of teams to 11 at the time before Manor’s closure at the end of that season.

Haas team principal Gunther Steiner was supportive of the move, saying it would help create “value” for F1 teams.

“If you pay this, you buy a value,” Steiner said.

“Anybody who has got money can decide if he wants to make an investment or not. With the budget cup, it can be an investment. Because if you do a good job, you can be profitable.

“I think it's an opportunity. You can create a value for somebody coming in new. Whoever comes in, he needs [to be] pretty solid to put a considerable chunk of money down to get the license, and then to build up the team, or buy a team.

“So you're almost sure that you get people which can raise this amount of monies.

“The good thing is with the budget cap you can budget for how much you're going to spend. Now you know how much it would cost you, and then you can evaluate if it's worthwhile the risk to invest in it.

“I think it's actually a positive for F1, that if somebody comes in, it is serious.”

shares
comments

Related video

Formula 1 Tuscan Grand Prix – How to watch, start time & more
Previous article

Formula 1 Tuscan Grand Prix – How to watch, start time & more

Next article

F1 should learn from Mugello's cambered corners, says Sainz

F1 should learn from Mugello's cambered corners, says Sainz
Load comments
Unpacking the technical changes behind F1 2022's rules shake-up Prime

Unpacking the technical changes behind F1 2022's rules shake-up

Formula 1 cars will look very different this year as the long-awaited fresh rules finally arrive with the stated aim of improving its quality of racing. We break down what the return of 'ground effect' aerodynamics - and a flurry of other changes besides - means for the teams, and what fans can expect

Formula 1
Jan 21, 2022
Why F1's new era is still dogged by its old world problems Prime

Why F1's new era is still dogged by its old world problems

OPINION: The 2022 Formula 1 season is just weeks away from getting underway, but instead of focusing on what is to come, the attention still remains on what has been – not least the Abu Dhabi title decider controversy. That, plus other key talking points, must be resolved to allow the series to warmly welcome in its new era

Formula 1
Jan 20, 2022
The Schumacher trait that will give Haas hope in F1 2022 Prime

The Schumacher trait that will give Haas hope in F1 2022

Mick Schumacher’s knack of improving during his second season in a championship was a trademark of his junior formula career, so his progress during his rookie Formula 1 campaign with Haas was encouraging. His target now will be to turn that improvement into results as the team hopes to reap the rewards of sacrificing development in 2021

Formula 1
Jan 19, 2022
The “glorified taxi” driver central to F1’s continued safety push Prime

The “glorified taxi” driver central to F1’s continued safety push

As the driver of Formula 1’s medical car, Alan van der Merwe’s job is to wait – and hope his skills aren’t needed. James Newbold hears from F1’s lesser-known stalwart.

Formula 1
Jan 15, 2022
When BMW added F1 'rocket fuel' to ignite Brabham's 1983 title push Prime

When BMW added F1 'rocket fuel' to ignite Brabham's 1983 title push

There was an ace up the sleeve during the 1983 F1 title-winning season of Nelson Piquet and Brabham. It made a frontrunning car invincible for the last three races to see off Renault's Alain Prost and secure the combination's second world title in three years

Formula 1
Jan 13, 2022
How “abysmal” reliability blunted Brabham’s first winner Prime

How “abysmal” reliability blunted Brabham’s first winner

Brabham’s first world championship race-winning car was held back by unreliable Climax engines – or so its creators believed, as STUART CODLING explains

Formula 1
Jan 10, 2022
The steps Norris took to reach a new level in the 2021 F1 season Prime

The steps Norris took to reach a new level in the 2021 F1 season

Lando Norris came of age as a grand prix driver in 2021. McLaren’s young ace is no longer an apprentice or a quietly capable number two – he’s proved himself a potential winner in the top flight and, as Stuart Codling finds out, he’s ready to stake his claim to greatness…

Formula 1
Jan 9, 2022
How Fangio set the bar for Schumacher and Hamilton in F1 Prime

How Fangio set the bar for Schumacher and Hamilton in F1

Juan Manuel Fangio, peerless on track and charming off it, established the gold standard of grand prix greatness. Nigel Roebuck recalls a remarkable champion.

Formula 1
Jan 8, 2022