Menu
Leagues and Governing Bodies

Toto Wolff Says Engine Manufacturers Are 'No Charity'

Mercedes Exec Dir Toto Wolff said that engine manufacturers cannot be "charitable" with how much money they charge customers for a power unit, according to Nate Saunders of ESPN. The FIA has "joined forces" with F1 CEO Bernie Ecclestone to push for a budget engine for '17 after Ferrari "vetoed the governing body's attempt to introduce a cost cap to reduce engine bills for non-manufacturer teams." An engine and gearbox deal currently costs around €20M ($21.8M) a year, with the "FIA originally hoping to reduce" that to €12M ($13.1M). Ferrari argued that it "should not have the cost of its product dictated by the FIA." Wolff agreed with this opinion and pointed to the fact Mercedes "currently loses money in its supply deals with Williams, Force India and Lotus." Wolff said, "We already lose money on the engine side, substantial. The question is how much more do we lose if we continue to subsidize those engines to some of our partners." The proposed budget engine "would be in the region" of €6M ($6.5M)-€7M ($7.6M) but Wolff insists Mercedes is "willing to talk to the FIA about a compromise around its original suggestion of cutting engine costs." Wolff: "I think you cannot expect any stakeholder in the sport to have a charitable approach, but you have to just -- although optimizing your own situation -- find a compromise for the sake of the sport" (ESPN, 11/5). 

CRUCIAL ENGINE: AUTOSPORT's Ian Parkes reported Red Bull Racing Team Principal Christian Horner believes the "power unit plight" of Red Bull and Toro Rosso "highlights the need for an independent engine manufacturer in Formula 1." Red Bull and Toro Rosso are currently both without an engine supply for '16 "after opting to split with Renault a year ahead of schedule." The FIA's planned introduction of an independent engine for '17 "comes too late to save Red Bull for next year," but is welcomed by Horner regardless. Horner said, "It's crucial because we're demonstrating quite clearly there is no regulation that dictates that engine suppliers have to supply, let alone at a competitive price. So an independent engine, for the future of Formula 1, for us it's a no-brainer." Horner feels that if the "other teams had any sense" they will also vote in favor "given the savings they are likely to make" per year of around €12M-€14M ($15.2M). Horner: "I'm sure if there's enough willingness, and there are enough teams struggling financially -- if you can take 20 million out of your engine/chassis budget it's a no-brainer" (AUTOSPORT, 11/5). 

NO CHANCE: SKY SPORTS' William Esler wrote Red Bull Owner Dietrich Mateschitz said that there is "no chance the team will continue with Renault power unit" as its Speedweek publication launched a "scathing attack on all of F1's engine providers." Red Bull had set a "self-imposed deadline" of the end of October to "secure a deal for next year, but that passed in Mexico with no announcement of a new supply made." Mateschitz: "We have had to extend our deadline for two or three weeks. But there is not a competitive engine for us anyway" (SKY SPORTS, 11/5). 

SBJ Morning Buzzcast: April 26, 2024

The sights and sounds from Detroit; CAA Sports' record night; NHL's record year at the gate and Indy makes a pivot on soccer

TNT’s Stan Van Gundy, ESPN’s Tim Reed, NBA Playoffs and NFL Draft

On this week’s pod, SBJ’s Austin Karp has two Big Get interviews. The first is with TNT’s Stan Van Gundy as he breaks down the NBA Playoffs from the booth. Later in the show, we hear from ESPN’s VP of Programming and Acquisitions Tim Reed as the NFL Draft gets set to kick off on Thursday night in Motown. SBJ’s Tom Friend also joins the show to share his insights into NBA viewership trends.

SBJ I Factor: Molly Mazzolini

SBJ I Factor features an interview with Molly Mazzolini. Elevate's Senior Operating Advisor – Design + Strategic Alliances chats with SBJ’s Ross Nethery about the power of taking chances. Mazzolini is a member of the SBJ Game Changers Class of 2016. She shares stories of her career including co-founding sports design consultancy Infinite Scale career journey and how a chance encounter while working at a stationery store launched her career in the sports industry. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Global/Issues/2015/11/06/Leagues-and-Governing-Bodies/Toto-Wolff.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Global/Issues/2015/11/06/Leagues-and-Governing-Bodies/Toto-Wolff.aspx

CLOSE