The German brand will continue at least one more year in F1

A clause of the Pact would allow them to leave without financial sanction

Brackley’s men are expected to have greater recognition for their successes

Mercedes will sign the Pact of Concord and will continue as the official Formula 1 team until at least 2021. The Germans will thus ensure, except for surprises, one more year of fighting for the Championship and a clause will allow them to leave the category at the end of a season without financial penalty.

As the German web portal and veteran journalist Ralf Bach advance as a result of information from “a reliable source”, Mercedes will sign the new Pact of Concord in the coming days despite their latest comments against the document. Brackley’s team will continue in the Great Circus as an official team until at least 2021.

A logical decision given its great start in this ‘shortened’ and compact 2020 season. The freezing of the regulations for next year will imply, if there are no surprises, that Mercedes will start with an advantage over the rest of the teams.

This would place them again as favorites for the Championship, which could be their eighth in a row. All this in addition, with a minimum capital investment thanks to the continuity of the technical regulation.

Despite this, the signing of the new Pact of Concord is not a long-term commitment to the category. In fact, according to the same source, the document will have a clause that Red Bull has proposed in which the departure of teams is allowed at the end of each year within the next five.

This means that Mercedes could leave the Great Circus at the end of 2021 without receiving any type of financial penalty for it. That is, they can ensure one more year of success next season and close the factory team by 2022.

According to Ralf Bach, Daimler is still considering ending the Mercedes project in F1. However, the coronavirus crisis has forced the German giant to postpone this decision until next year.

Of course, the new team exit clause is presented as a great attraction for the team with the largest budget on the grid. The budget limit of 145 million euros is a major obstacle for a Mercedes that is around 450 million euros per year.

Mercedes is expected to receive more money for the commercial rights of F1 in the new Pact of Concord due to all the successes it has generated since 2014. Also for its great image at the marketing level that has promoted the Great Circus, with a Lewis Hamilton, who, in addition to being the sixteenth world champion, serves as a media voice and has millions of non-sport followers on his social networks.

Formula 1 can’t wait any longer. Despite the refusal of Toto Wolff last weekend to sign the document, tomorrow – August 12, 2020 – the deadline is reached to close an agreement between the 10 teams on the grid.

Mercedes and Racing Point are among the few teams that have yet to give the definitive ‘yes’ – the latter claims to be 80% in agreement with the whole plan, but they want to close details of the other 20% -. Ferrari, Williams, Haas and McLaren are ready to sign.

Ultimately, Mercedes does not fully agree with all the points of the new Pact of Concord. However, slightly increasing their privileges in terms of the commercial proposals of the sport and having an exit clause available, has led them to approach positions with Liberty Media. We will have silver arrows on the grid until at least 2021.

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