Mercedes team principal Toto Wolff has warned that the F1 can't continue its business model of demanding high fees for the circuits to host the race, as the Austrian claims that this idea is not sustainable.
Wolff explained that sanction fees were a big part of the old F1's business model, but that this is no longer sustainable.
“Sanction fees were one of the three key revenue generators in the old Bernie Formula One business model," Wolff told Reuters.
"And he was exceptional at these deals.
“I am not sure that is sustainable.
“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 economic situation.”
Silverstone and Hockenheim are the two circuits that struggle most with the sanction fees, as both circuits are reportedly willing to quit hosting as it's losing them a lot of money, simply because the cost of hosting is so high.
“We have to grow in other areas, we have to grow broadcast deals and digital revenue and monetise alternative revenue streams” Wolff proposed.
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