Toto Wolff's Path to Billionaire Status Explained

In this week’s email:

• New Sprint Format: Sprint won’t determine starting grid

• Toto Wolff Reaches Billionaire Status: Mercedes responsible for most of it

• Azerbaijan GP: Teams’ new implementations

• MazeSPIN Wants Back on the Grid: Nikita looking to do what seems impossible

• Standings: Drivers and teams standings before Baku

• Meme of the Week: Baku finally here

New Sprint Format

FIA makes major changes right before start

FIA has approved a dynamic new Sprint format. Following weeks of discussions, this innovation is set to enhance the racing experience for both teams and fans.

In anticipation of the Azerbaijan Grand Prix, teams have agreed to improve the format by addressing the lackluster nature of Saturday morning's FP2 session. This change encourages drivers and teams to be more daring during the Sprint, without worrying about the impact on Sunday's Grand Prix.

The revised schedule replaces FP2 with the 'Sprint Shootout,' a qualifying session that will determine the grid for the Sprint. Friday's qualifying will then set the order for the Grand Prix itself.

Saturday now stands as a distinct day, with the Sprint's outcome having no bearing on the next day's race. This allows drivers to be more competitive with fewer concerns about major repercussions on Sunday's event.

The Saturday qualifying follows a Q1-Q2-Q3 format, with shorter time windows of 12, 10, and 8 minutes respectively. This change may limit drivers to just one run in Q3 during the Sprint Shootout. Teams must also use new medium tires in Q1 and Q2 on Saturday and new softs in Q3.

While Friday's qualifying session remains unchanged, the points distribution will also stay the same, with the top eight drivers scoring in the Sprint.

Toto Wolff Reaches Billionaire Status

Mercedes's domination helps make Toto rich

Toto Wolff has officially joined the ranks of billionaires, and it's all thanks to his involvement with the Mercedes Formula 1 team. With an impressive 33% stake in the team, over 1,000 employees, and $450 million in annual revenue, let's dive into the story behind Wolff's meteoric rise.

A little context goes a long way, and Mercedes boasts a storied history in motorsports. Competing in Grand Prix racing since the early 1900s, the team claimed two Formula 1 World Drivers Championships in 1954 and 1955 before shutting down after a tragic accident. Mercedes only returned to Formula 1 over 40 years later, supplying engines to teams like Sauber, McLaren, and Brawn GP throughout the 1990s and early 2000s.

In 2010, Mercedes jumped back into the fray, purchasing the Brawn GP Formula 1 team for $175 million. However, things started off rocky as the team didn't win a single race over the next three years.

Enter Toto Wolff, a former racing driver turned successful venture capital investor. After acquiring a 16% stake in the Williams F1 team and joining its Board of Directors, Wolff caught Mercedes' attention following Williams' 2012 Spanish Grand Prix win.

Initially, Wolff declined Mercedes' offer to run their F1 team due to his Williams equity stake. But Mercedes persisted, enticing Wolff with an unlimited budget and a 30% stake in the team at an "attractive valuation" of around $30M. Wolff accepted.

With Formula 1's regulations shifting in 2014, Mercedes outpaced competitors by building a superior power unit. This ignited a decade of dominance, including 8 consecutive team championships and 7 consecutive driver championships. More importantly, the team's financial triumph surged, as both employee count and annual revenue more than doubled since 2013.

And it's not just Mercedes reaping the rewards – F1 is flourishing as well. Liberty Media's $4.4 billion purchase of F1 in 2016 has led to increased viewership and market cap, directly impacting team valuations.

The Mercedes F1 team's worth has now soared to $1.5 billion, up from $170M. Wolff's 33% stake translates to a cool $500 million, not including his $20M+ annual salary and other investments.

Credit goes to Joe Pompliano on this one. You can check out his Twitter thread here.

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Azerbaijan GP

Going through F1 withdrawal

Formula 1 is finally back after a long break. The season's fourth race kicks off in Baku for the Azerbaijan GP. West Coasters are going to have to watch this on replay or get a few coffees IV dripped.

As the excitement builds, let's not forget that teams have been busy at their factories, working on crucial car upgrades. While the summer break enforces a mandatory shutdown, this time of year allows engineering teams to focus on research and development.

Here are what some teams are doing.

1. McLaren's Major Update

McLaren has announced that they will be bringing a significant upgrade to Baku. However, Andrea Stella, McLaren's Racing Director, cautions fans not to expect a game-changer just yet. The team has a B-spec car planned for later this season, which promises even more improvements.

2. Mercedes' Drivability Enhancements

Mercedes has been focusing on suspension changes to improve drivability. While the team has been relatively tight-lipped about the specifics, fans are eager to see how these adjustments will impact their performance on the challenging Baku street circuit.

3. Ferrari's Tailored Approach

Ferrari is taking a slightly different approach for the Azerbaijan GP. They are working on a package tailored to the specific downforce levels required for this unique circuit. It will be interesting to see how this customized strategy pays off during the race weekend.

4. Other Teams and Upgrades

While McLaren, Mercedes, and Ferrari are in the spotlight, it's worth keeping an eye on other teams as well. It remains to be seen which teams will opt for significant upgrades during a weekend that offers only one hour of practice before car setups need to be locked in for the rest of the event.

MazeSPIN Wants Back on the Grid

Russian driver is pleading his case

Ex-Haas driver Nikita Mazepin isn't giving up on his Formula 1 dreams just yet. The determined racer plans a hopeful return in 2024 by taking his case to court against Canada’s Foreign Affairs Minister, seeking the removal of sanctions placed on him.

Mazepin's F1 journey took an unexpected turn last year when Haas dropped him due to Russia's invasion of Ukraine. The FIA then required Russian or Belarusian drivers to compete under a neutral flag and condemn the actions of the ongoing war to participate in FIA-accredited Championships.

However, Mazepin, whose father Dmitry has close ties to Russian president Vladimir Putin, was unwilling to abandon the Russian flag.

The sanctions currently prevent him from competing in any motorsport event held in Canada. Mazepin believes this restriction would "categorically reduce" his chances of signing with an F1 team, as he wouldn't be able to participate in the annual Montreal F1 round.

In his appeal, Mazepin emphasizes that he is a "young sportsman and professional motorsport driver who is in no way involved in the aggression suffered by Ukraine," and that it would be "extremely difficult—if not impossible—for him to be recruited again as an F1 driver or as a driver in other motorsport championships."

Mazepin made his F1 debut in 2021 alongside Mick Schumacher as part of Haas' all-rookie driver line-up. Despite driving a largely underdeveloped car, Mazepin struggled to match his teammate's pace throughout the season.

Although he tested the improved VF-22 package in Barcelona, Mazepin was replaced by Kevin Magnussen before the season began. Magnussen has since delivered strong performances for Haas, while Schumacher faced challenges, leading to his replacement by Nico Hulkenberg.

Haas has moved on from Mazepin and their Russian fertilizer company sponsor, Uralkali, partnering with MoneyGram instead. Meanwhile, Mazepin has ventured into the Asian Le Mans Series, scoring two pole positions and two podiums in four starts.

With his future in Formula 1 uncertain, Mazepin's legal battle showcases his unwavering determination to reclaim his spot on the grid.

Standings

Going into Baku here are the current driver and team standings.

Is Red Bull going to stretch their lead or will the other teams close the gap? With some luck, Alonso could be sitting on top. Let me know what you think will happen with a reply.

Meme of the Week