Mercedes is yet to sign a new Concorde Agreement which would guarantee the team’s participation in the Formula 1 championship beyond 2020.
The first Concorde Agreement was signed by all teams participating in the Formula 1 championship in 1981 and since then there have been six further agreements, with the last one signed in 2013.
The 2013 agreement lasts until the end of 2020 and teams are expected to agree to a new deal beyond that. Although there are benefits of racing without pledging your participation for up to five years, Mercedes team boss Toto Wolff agrees a new agreement should be signed.
“I am open to racing without an extension because in the auto world things change pretty quickly, and if we were not signed up for five years, that would give us flexibility,” Wolff told Autoweek.
“I believe the Concorde gives a certain safety to all stakeholders. It gives Formula 1 a safety net to have teams signed up.
“It gives certain stability to Formula 1 when pitching for TV or sponsorship partners because they know that the teams are going to be participating and it gives a safety net to the shareholders of Formula 1 teams and to employees knowing that we are in this for the next five years.
“If you have a rolling non-committal situation it could provide instability. People like to have some kind of visibility: What am I buying into and what do I pay for?
“If there could be structural or seismic changes every year that would obviously not be great,” concluded the Austrian.