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Mercedes F1 future in doubt

The future of Mercedes in Formula One is in doubt this week after reports over the weekend that they could quit the sport.

Talks are currently ongoing in regard to the proposal that Formula One will opt for a Stock Exchange floatation in the not so distant future.

This has brought forward talks on the dynamics of the sport's ruling body, which could see seats in the boardroom given to Ferrari, Red Bull and McLaren, isolating Mercedes as the biggest team not invited to the top table.

The Times newspaper believe this snub could force Mercedes to leave the sport, which would be a big blow to Formula One.

Mercedes have a long history with Formula One and since taking over the Brawn GP team to return to Formula One, have invested more than £1 billion on the team, they have also partnered many teams as engine suppliers down the years, most notably McLaren.

Around 1,000 jobs are tied up in Mercedes involvement in F1 and Mercedes withdrawal from F1 could wipe out as much as 20% off the F1's floatation valuation according to the report, due to Mercedes market power.

When compared to Red Bull, who of course are a relatively new team in the scheme of over 50 years of motor racing, it's easy to understand Mercedes disappointment and frustration.

When the Times report also suggests that despite all the recent controversy, that the ruling regime of Bahrain could also have a place in the boardroom its difficult to not see Mercedes point of view.

With talks ongoing Mercedes of course were quick to deny the claims that they will walk away from the sport, taking the diplomatic position of no comment.

'We are in discussions with the commercial rights holder [CVC Capital Partners] and we would like to ask for your understanding that we are not currently commenting on these discussions.' A spokesman told Sky Sports.










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The Journalist

Writer: Red5 Mail feedback, articles or suggestions

Date:Tuesday May 8 2012

Time: 10:00AM

 

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