Automotive

Of Course Mercedes Won’t Agree to the New Redistribution of the F1 Wealth


Illustration for article titled Of Course Mercedes Wont to Agree to a More Equal Distribution of the F1 Wealth

Photo: Andrew Boyers (Getty Images)

Every few years, The Powers That Be in Formula One sit down to redraw the rules of competition and the prize money distribution. Known as the Concorde Agreement, this little document has caused a fuss ever since the first agreement was signed in 1981. And with the newest iteration coming up in 2021, it’s no surprise that some of the top teams are pushing back against the promise of a more equal prize fund distribution.

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Liberty Media, who owns F1, has been pushing hard to make this very hierarchal sport just a little more equitable. By implementing both cost caps and a more balanced distribution of prize funds at the end of the year, Liberty Media has been hoping to afford struggling teams with the chance to succeed while also keeping racing giants like Mercedes in check.

But Mercedes boss Toto Wolff is complaining that the agreement is designed specifically to hurt his team. From Racer:

We are, I would say, the biggest victim in terms of prize fund loss in all of that. Ferrari has maintained an advantageous position, for Red Bull it obviously balances out with Toro Rosso, so it’s us that are hurt the most.

I feel that Mercedes has contributed to the sport over the last years. Apart from being competitive on track we have the driver that has clearly the most global appeal, and we feel that while being in those negotiations we weren’t treated in the way we should have been. Therefore there is a bunch of open topics for us that are legal, commercial and sporting, and in our point of view I don’t feel ready to sign a Concorde Agreement.

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According to Wolff, many other teams have massive problems with the nature of the new Concorde Agreement but have opted against saying anything publicly.

The final version of the Concorde Agreement must be signed by August 12, 2020. A Formula One spokesperson told RACER that the series would not be negotiating any further changes to the document while Red Bull Racing team boss Christian Horner remains confident that all the teams will come together to sign in the end.

“You have to look at the bigger picture and look at it as a partnership,” Horner said. “We need Liberty to bring as much revenue into the sport and interest and coverage, that ultimately the teams and all participants will benefit from.

“You have to take a bit of a holistic view on these things, you’re never going to get everything you want.”

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Wise advice indeed, but not the kind of thing you’re likely to actually see happen in the racing world.

The Concorde Agreement is confidential, so us laypeople will probably never know exactly what it contains. Ferrari, McLaren, and Williams have all stated that they’re willing to sign it, which could possibly mean that legacy teams are still financially rewarded for their longevity. But that’s just speculation.

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Teams have a mere four more days to sign the contract. Whether or not Mercedes finally caves remains to be seen, but a further delayed Concorde Agreement wouldn’t be all that surprising in this year of uncertainty.

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