Formula 1: Could Mercedes walk away after 2020?

SAO PAULO, BRAZIL - NOVEMBER 16: Lewis Hamilton of Great Britain driving the (44) Mercedes AMG Petronas F1 Team Mercedes W10 on track during qualifying for the F1 Grand Prix of Brazil at Autodromo Jose Carlos Pace on November 16, 2019 in Sao Paulo, Brazil. (Photo by Robert Cianflone/Getty Images)
SAO PAULO, BRAZIL - NOVEMBER 16: Lewis Hamilton of Great Britain driving the (44) Mercedes AMG Petronas F1 Team Mercedes W10 on track during qualifying for the F1 Grand Prix of Brazil at Autodromo Jose Carlos Pace on November 16, 2019 in Sao Paulo, Brazil. (Photo by Robert Cianflone/Getty Images) /
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With Liberty Media’s new rules and regulations for Formula 1 slated to be introduced ahead of the 2021 season, could Mercedes walk away after 2020?

Since the start of the V6 turbo hybrid era of Formula 1 began back in the 2014 season, there has been one dominant force in the sport, and that dominant force has shown no signs of slowing down, winning every constructor and driver championship from 2014 to 2019.

Mercedes are slated to enter the 2020 season as six-time reigning constructor and driver champions, something that no other team have ever been able to say. Only Ferrari have been able to say that they have won six constructor titles, winning every year from 1999 to 2004.

In five of the last six seasons, it was Lewis Hamilton getting the job done for the Silver Arrows, most recently becoming a six-time champion and three-time reigning champion.

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In 2016, teammate Nico Rosberg edged him to win the title just days before retiring.

In total, 121 races have been contested since the 2014 season began. Mercedes have won 89 of them. Next closest on the list? Ferrari, 72 wins behind with 17. Red Bull Racing are the only other winners over the course of these six seasons with 15 victories.

But beyond the 2020 season, the Silver Arrows are not committed to competing, and there are rumors that they will walk away.

Here is what Mercedes team principal and CEO Toto Wolff had to say about the matter, according to Motorsport.

"“It is an issue that we are currently discussing with each other. With an emphasis on ‘being’. These conversations have not yet been completed.”"

If they do walk away, it would be as a constructor, not as an engine supplier. They currently supply engines to Racing Point and Williams, and while their deal with Racing Point has not been confirmed for beyond 2020, they recently inked a long-term extension with Williams through the 2025 season.

Additionally, McLaren, which are currently powered by Renault, agreed to a deal to have Mercedes supply their engines beginning in the 2021 season. The Woking-based team previously used Mercedes engines from 1995 to 2014 before switching to Honda in 2015 and then Renault in 2018.

But could they really walk away?

As mentioned above, Mercedes have dominated since the start of the V6 turbo hybrid era, and there is every reason to believe that they will add yet another constructor title and another driver title in 2020, even if the championship battle is slated to be the closest that it has been among the top three teams.

But in 2021, that advantage could dissipate.

Liberty Media are slated to introduce new rules and regulations ahead of the 2021 season with the goal of making Formula 1 more competitive, and among those rules and regulations is a $175 million budget cap.

Mercedes currently spend $484 million, tops in the sport.

There are several exemptions to this budget cap, most notably drivers salaries. So while there are currently six teams that are spending more than $175 million, only three teams are projected to actually have to reduce spending because of this budget cap.

But Mercedes are one of these three teams, and that could result in them being not only reeled in to the rest of the pack but possibly being passed in terms of competitiveness by one or more teams.

Let’s not forget that before 2014, they were nothing more than an also-ran.

What would they have to gain by returning in 2021 as a constructor? In fact, on paper, they stand to lose a lot more than they stand to gain. Of course, that’s not to say that they still wouldn’t be competitive, but it would be a lot more of a challenge to remain the best.

As seven-time champions, would it be worth it?

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Will the 2020 Formula 1 season be the final season in which Mercedes compete as a constructor, or will they be back in 2021?