Toto Wolff slams reported $450 million dilution fee for Cadillac’s F1 entry
Toto Wolff has spilled the beans on the negative side of Cadillac's reported $450 Million dilution fee for the remaining teams in Formula 1.
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Toto Wolff and Cadillac's logo (via Planetf1)
Formula 1 recently accepted Cadillac’s renewed bid to join the Formula 1 grid after ditching Andretti Autosports. This meant that the grid would have 11 teams on the grid and 22 drivers fighting for the race win. Moreover, the prize money would be distributed within the 11 teams instead of the previous ten-team distribution. As a result, Toto Wolff took a dig at Cadillac’s reported $450 million dilution fee, claiming it to be too little.
In the 2024 season, Formula 1 distributed over $1.2 billion among the ten teams with McLaren topping the chart. Cadillac’s recently approved bid was under the condition that they would pay over $450 million in order to compensate for the money distribution. This meant that over $1.65 billion would be potentially distributed among the teams.
Mercedes boss Toto Wolff reckoned that the $450 million fee did not correctly offset the financial impact of an 11th team on the grid. The 53-year-old claimed that the teams ‘lost out’ on funds due to Cadillac’s entry. Wolff reiterated that the fee was not only too low but also did not ‘make up’ for the direct loss in income for the remaining teams.
When you look at it in the first instance, we lose out. The compensation fee, which is currently set at $450 million, is too low. It does not make up for the direct loss in income.
Toto Wolff told Auto Motor und Sport.
Toto Wolff reveals the ‘condition’ to make Cadillac’s entry profitable for all teams
Despite Cadillac’s entry looking to wage more negatives than positives for the rest of the team, Toto Wolff agreed to play the waiting game ahead of their entry. Wolff revealed the condition for the American constructor to provide a reasonable profit to other teams. The Austrian claimed that if Cadillac entered the grid with a works team and invested in a marketing budget within the sport, it could become a valuable asset.
Only time will tell what value the sport gains from having an 11th participant. If Cadillac enters now with a works team and invests an appropriate marketing budget into Formula 1, it will be a valuable addition to the sport.
Toto Wolff noted.
Cadillac has already decided on Ferrari for the power units from the 2026 season as the Italian constructor received one more customer. The team is looking to finalize the drivers’ lineup and the personnel ahead of their entry. Hence, as Wolff said, only time will tell the benefits of an 11th team on the grid with 22 drivers racing together.
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Aditya Pandya
(1456 Articles Published)