Cadillac F1 Fee Too Low - Warns Wolff Amid Revenue Fears

Toto Wolff has dismissed Cadillac F1’s entry fee, claiming it fails to compensate for revenue dilution among existing Formula 1 teams.

Toto Wolff has criticized the entry fees required from Cadillac F1 ahead of its planned debut in Formula 1 in 2026.

Although F1 owner Liberty Media has reluctantly agreed to allow an eleventh team into the sport, existing teams continue to oppose the move, arguing that it would dilute their share of commercial revenues.

Initially, the compensation fee to offset dilution was set at $200 million, but teams have pushed for a significantly higher figure — reportedly up to $600 million.

This comes despite Mercedes F1 boss and co-owner Wolff acknowledging that the Mercedes project is now profitable.

“Thanks to the cost cap and the Formula 1 boom, teams are making money instead of burning it as they used to,” he said.

“We are generating real profits. The profitability margin is 30 to 35% before taxes. This even covers the engine costs.”

“The old cliché that Formula 1 just burns money is a thing of the past. Ultimately, Formula 1 has never been healthier than it is today.”

However, Wolff admits he still has concerns about Cadillac’s commitment to F1.

“If they’re coming in as a manufacturer, investing a corresponding marketing budget in Formula 1, then that adds value to Formula 1. Cadillac could contribute to F1’s global image,” he added.

But he still asserts that the proposed compensation amount, in the absence of Concorde Agreements already in place for 2026-2030, is insufficient.

“We are losing out from the start. We don’t know what Cadillac will invest in Formula 1. The compensation, currently set at $450 million, is too low.”

“It doesn’t offset the direct loss of revenue. Only time will tell what the sport gains from having an eleventh participant. We simply don’t know.”

“No one has told me exactly what Cadillac plans to do.”