Mercedes and Formula 1 Cannot Agree to a new Contract


World champions of Formula 1, Mercedes have reportedly reached a stalemate with Formula 1 over a new contract to continue racing in the sport after 2020.

Due to the winners and top teams of the sport getting large amounts of prize money and the teams at the bottom of the standings getting significantly less leading to predictable racing where Mercedes, Red Bull and Ferrari were usually leading the sport, Formula 1 have decided to decrease the amount of money between teams.

The idea of this is to hopefully level the playing field and lead to fairer racing.


Mercedes CEO Toto Wolff has said that he believes Mercedes were “the biggest victim in terms of revenue loss.” He added that they gave concerns over “legal, commercial and sporting,” issues.

Wolff’s comments do raise the question of whether or not Mercedes will agree to a deal. The deadline for the team to commit for the 2021 season is August 12th.

It is clear that Mercedes wants to keep racing in Formula 1 as a couple days ago they resigned Valtteri Bottas for the 2021 season. However, Wolff has said that he has not seen a willinness to compromise from Formula 1.

A spokesperson for F1 has said “F1 has engaged with all teams in a collaborative and constructive way and listened to all their views.”

“This agreement is important for the future of the sport and all our fans. We are moving forward with this and will not be delayed any longer.”

If F1 and Mercedes are unable to come to a deal, there is risk for Formula 1 and its owners as Mercedes employ one of the most famous and successful drivers in F1 history.

Wolff has said that he feels like Mercedes haven’t received the same treatment that other teams, notably Ferrari, have received. Ferrari’s historic importance to the sport has been reflected in their new deal, but Wolff feels that, that same approach has not been applied to Mercedes.

Under the current contracts and agreements, last year, Ferrari received about $110 million, Mercedes and Red Bull about $70 ,million, McLaren about £30 million an Williams about $10 million.

The key change in the new contracts is that F1 has removed a part of the prize money system that awarded extra money to teams based on how long they’ve been competing and their historic success in the sport.

Using the new system, Ferrari will get around $40 million based on its historical significance to the sport, and teams that supply engines will get £10 million.

The sport’s longest racing teams: McLaren, Ferrari and Williams have all said that they are ready to sign the new terms.

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