Is Mercedes-Benz set to quit F1?

Reports emerging from Formula 1 indicate that Mercedes-Benz are considering leaving the competition over commercial terms. The company are having issues with the commercial deal currently that they are being offered. They want specific terms and conditions to be altered.

Will Mercedes-Benz challenge under the European Law?

Mercedes-Benz may even go as far as presenting a legal challenge under the European competition law. Anyone challenging under this would do so on the grounds of a dominant force abusing power.

Can Mercedes-Benz afford to leave F1?

It is only Mercedes-Benz amongst a select few who are yet to agree terms with F1 regarding a commercial Trustworthy sources have speculated that the Caterham, Marussia, Williams and HRT are the other companies in the same boat. Mercedes-Benz are clearly the only major name in that hat. As everyone knows the company has many other business avenues to continue along, with others heavily relying on motorsport to survive.

Teams to have already agreed

Day by day negotiations are not getting any closer to coming to any sort of agreement with Bernie Ecclestone, the F1 owner. According to Mr Ecclestone himself, teams such as Red Bull and McLaren as well as Ferrari have already agreed new commercial deals. The news was broke before the Malaysian Grand Prix in which Fernando Alonso was named the winner. Other teams who have already agreed are Force India, Sauber, Lotus and Toro Rosso.

Incentives offered to rivals

It would appear that the company are finding it unfair those certain companies may receive incentives. Ferrari may even receive shares in Formula One under the new agreement, as stated on a leaked unsigned agreement as seen on Sky Sports. The incentives mentioned earlier could benefit direct rivals of Mercedes-Benz. These include benefits for teams who had won the Constructors title and teams who have not changed their name since 2000.

No statement regarding the new commercial deal

So far the company have kept quiet and have not commented directly on the whole saga. A spokesman was quoted to have said “We would like to ask for your understanding that our team currently has nothing to say on this matter. We will, of course, inform you immediately at the appropriate time.”

Why are Mercedes-Benz playing hardball over the new commercial deal?

Many would suggest that it is no wonder that the likes of Red Bull and Ferrari were quick to agree the new deal as they benefit the most. Is the new F1 commercial deal really fair?

 

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