Mercedes says if Red Bull isn't sanctioned for its minor cost cap breach accordingly by the FIA, the Brackley squad could choose to overspend next season to help boost its performance.
Following the FIA's comprehensive audit of teams' accounts, Red Bull has been found guilty of breaching Formula 1's financial regulations in 2021.
However, the governing body has classified Red Bull's transgression as "minor", meaning it represents less than 5% of the team's $145 million maximum budget.
The FIA has not yet disclosed the final figure, but the variance implies anything from $100,000 to $7.5 million, which in turn suggests a negligible breach as well as a significant overspend that may have delivered performance gains and anything in between.
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A report from Dutch outlet De Telegraaf claims that the bulk of Red Bull's overspend – estimated at between $1m and $2m – was linked to catering fees, free lunch for its over 1,000 members of staff, as well as illness and absent employees.
If true, a simple fine would likely be levied upon Red Bull as such a breach would not have helped the team extract more speed from its 2021 car.
But if excess spending on development is proven, even to the tune of a couple million dollars, it would put the bulls at risk of a stern response from the FIA.
And Mercedes will be watching closely in the coming weeks how the FIA sanctions its rival, as the final penalty - depending on the level of the punishment - will provide teams with clarity on whether there may be an incentive to overspend in the future, and if there is, it could spell the end of F1's cost cap measures.
"If Red Bull had overspent by two million, they could close the matter by paying the FIA five times, therefore 10 million," Wolff said, quoted by Italy's Corriere dello Sport.
"And in any case it would not be fair because it would sanction the right to cheat by paying a fine."
Wolff has made clear that if Red Bull's case leads to the notion that overspending and committing a minor breach is worth a team's while, then Mercedes will act accordingly.
"Mercedes have already talked about it and, if this were really the point of failure, Mercedes is ready to plan extra budget and related fine to recover performance and return to the top," added Wolff.
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