Mercedes motorsport boss Toto Wolff believes Formula 1 bosses may need to consider lowering race fees as a number of Grands Prix face uncertain futures.
The sport’s historical heartlands of Britain, Germany, Italy are all feeling the pinch with their respective circuits, Silverstone, Hockenheim and Monza all out of contract in the next year or two and admitting they cannot face the rising costs.
Other races such as Belgium, Spain and Japan are all expected to renew quite easily but all three have also expressed concern before.
More recent additions are also struggling with Malaysia pulling out after 2017, Singapore leaving it late and Baku, who it is believed pay the most, warning they won’t renew unless their fee is reduced.
“Sanction fees were one of the three key revenue generators in the old Bernie F1 business model and he was exceptional at these deals,” Wolff said during the Monaco GP weekend.
“I am not sure that is sustainable. It is clear that when there is a change of regime, people and promoters will negotiate and try to restructure the business model.
“Bernie was squeezing the last cent out for the benefit of the shareholders and the teams but it left certain promoters in a very difficult economic situation.”
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What some race organisers have jumped on, is CEO Chase Carey’s insistence that F1’s European base would be maintained and claims that the deal for a race in Miami next year doesn’t come with a fee at all.
Instead, Liberty will receive a revenue share, something that could be used elsewhere, and the Mercedes chief is hoping such deals can help to ease the burden on those that do pay to welcome the sport.
“It is clear that maybe that one pillar (hosting fees) is going to be difficult to maintain on the levels we have seen before,” he said.
“We have to grow in other areas, we have to grow broadcast deals and digital revenue and monetise alternative revenue streams.”