Mercedes boss Toto Wolff believes the introduction of a budget cap will see a change in how the Formula 1 business model is viewed.
Over the past decade, four new outfits have joined the grid with only the newest one, Haas, left while four others have changed ownership sometimes twice.
The main issue has been the spiralling costs of F1 as proven by recently announced losses for Williams and Renault, but for 2021, a new $175m cap and an overhaul of the financial structure is hoping to tackle that.
“The business model for F1 teams is about to change with the introduction of the cost cap in 2021,” Wolff said at Monza.
“There will be some substantial reductions happening at the top teams and I think the balance of performance or the gap in performance is going to decrease.
“Also, there will be an opportunity to reduce your losses or even becoming profitable as any sports team should be, you can see the examples in the US.”
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Several manufacturers did take an interest in returning as engine suppliers for 2021 before backing out, while a new Asian team is believed to be in the early stages of preparing for a future entry bid.
“I think owning a Formula 1 team will not only be a marketing exercise like it is today like large OEMs or multinational companies, or a trophy investment for an individual – it will become a real business,” the Mercedes boss continued.
“This is about to happen, which is why I’m not surprised there is interest from potential investors or potential team owners but I guess everyone who is in the sport sees that opportunity, sees what is about to happen in 2021 and 2022 and I think it’s a milestone for F1 which is just about to happen.”
Recently, F1 motorsport director Ross Brawn confirmed that the grid could grow once again but warned the realistic timeframe is still a few years away.
“We have a surprising number of teams who have shown an interest [in joining F1],” he told Sky Sports.
“But what we’ve said to those teams is ‘let’s get these new rules introduced, let’s stabilise the situation, let’s get everything working properly before we seek more teams’.
“I think with the 10 teams we have, 10 healthy teams is actually enough. If we do get extra teams then they have really have to add to the show.”
And that is something that Wolff also emphasised following what occurred with HRT, Caterham and Manor when they joined in 2010.
“I think we’re all aware that entering a Formula 1 team into the world championship is something that should happen on merit,” he said.
“It needs to be credible, needs to be funded, in the right way and needs to be agreed by all the stakeholders especially the ones that will be diluted.
“But I think this is well understood amongst everyone, between Liberty, the FIA, and the teams and there is a common objective and I see it as a positive.”