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Formula One has unveiled its long-term roadmap to reduce the team’s budget cut, and a decision is expected next week. The figures are understood to include a cap set at $ 145 million in 2021, which drops to $ 140 million in 2022 and then to $ 135 million by 2023-25.
The target numbers are considered acceptable to midfield teams like McLaren, but the deal is far from being a given, with a possible downgrade to the scale of possible cuts proposed by Ferrari and Red Bull.
On Monday F1 Sports Director Ross Brawn announced that new proposals had been sent to the teams. A limit of $ 175 million (£ 142 million) was agreed last year for 2021. The financial impact of races canceled due to the coronavirus has forced the sport to revert to the issue.
Brawn believes that F1, the FIA and the teams were close to reaching an agreement by 2021, but noted that the intention was to achieve further cuts without publicly offering any details. “The discussion really is how much lower can we drive it in the coming years,” he said. The $ 145 million ceiling is believed to have broad support, but the other figures under discussion are likely to be more controversial.
McLaren CEO Zak Brown warned that F1 could lose up to four of its 10 teams if the impact of the coronavirus is not managed properly and that F1 should use this as an opportunity to ensure the sport remains sustainable in the future.
Ferrari, however, has objected to a drop below $ 145 million, warning that it was already a demanding request below which the team would be forced to consider how it uses its racing resources. Ferrari team principal Mattia Binotto also fears that an overly large cap runs the risk of devaluing the sport’s reputation for technical excellence as the pinnacle of motorsport. You are in favor of a two-tier limit to reflect the increased spending by larger teams on parts manufacturing, however, this two-tier approach is not in the proposal, which can also be an obstacle.
Similarly, Red Bull team principal Christian Horner has also opposed any impending cap below $ 145 million. In early April, a meeting with teams to discuss a proposed drop to $ 130 million in 2022 failed to reach an agreement. However, recent changes in regulation by the FIA mean that unanimity of agreement between teams is no longer required and that proposals can be adopted with a majority against the opposition.
