Formula 1 set for five-year sliding-scale budget cap
F1 teams are reportedly considering a five-year budget cap plan that to be implemented from next year, with a vote on the proposal scheduled in the coming days.
Teams unanimously agreed to cut the sport’s initial budget cap limit for 2021 from $175m to $150m as a result of the financial impact of the coronavirus crisis on F1.
But during subsequent meetings to discuss F1’s economic downturn, an additional reduction $145m was decided. However, the sport’s mid-field outfits have since been pushing for a more significant cutback, with McLaren even suggesting a contraction all the way to $100m!
Silverstone and F1 locked in British GP financial standoff
However, Ferrari vehemently opposed an additional cut, arguing that it would lead to massive layoffs among its ranks and for the sport’s leading manufacturer teams.
The latest cost cap formula submitted to the teams would start at $145m in 2021and decrease to $140m for 2022 and to $135m for 2023, with the threshold remaining at that level for 2024 and 2025, although a provision would allow for an adjustment in line with inflation numbers.
Teams are set to vote on the sliding-scale schedule, but in accordance with last month’s change to the FIA’s sporting code, only six teams need to vote in favour of the measure for the budget cap proposal to pass.
The procedure therefore almost guarantees the proposition’s ratification by the FIA’s World Motor Sport Council.
It remains to be seen however how F1’s three big teams – Mercedes, Ferrari and Red Bull – will react to the final cost cap scheme in terms of its impact on job losses, as feared by the Scuderia.
Gallery: The beautiful wives and girlfriends of F1 drivers
Keep up to date with all the F1 news via Facebook and Twitter
Click Here: essendon bombers guernsey 2019