Liberty Media race changes could mean less revenue, worries Wolff

Mercedes boss Toto Wolff feels that Liberty Media's change in approach to how revenue is generated around races may lead to a drop in earnings, as former owner Bernie Ecclestone was so skilled at extracting maximum value from such deals in the past.

The deal for the upcoming Miami Grand Prix is a move away from the previous structure of a promoter paying a flat fee for entrance into the calendar; instead, F1 will take a percentage of the gate and any other associated raceday income that is generated.

As a result other existing promoters, including those representing Germany and Azerbaijan, are looking to renegotiate their deals with Liberty Media to a mare favourable agreement similar to Miami.

Wolff is concerned that the revenue that was previously guaranteed from races could drop as a result, saying: "Sanction fees were one of the three key revenue generators in the old Bernie [Ecclestone] F1 business model, and he was exceptional at those deals.

"I'm not sure it's sustainable. It's clear when there is a change of regime that people and promoters will try to negotiate and 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 economical situation."

Wolff hastened to add, though, that he has faith in Liberty to reshape their business model and find other ways of generating income to ensure that there is no significant dropoff for constructors.

He added: "I have confidence in the current management team that they will take the right decisions and find the right agreements with promoters, sign new race tracks.

"Miami is very exciting, but it's also clear one pillar is going to be difficult to maintain on the levels we have seen before.

"We have to grow in other areas, to grow broadcast deals and digital revenue, and monetise alternative revenue streams."