According to F1 technical boss, Ross Brawn, the series will move toward a further reduction of the initially proposed budget cap of $175 million. The new number is projected to begin in 2021 at $145 million which is not as low as some teams were hoping for with calls to reach $100 million.
“We started at 175 [million dollars], that was a long battle to get it there, and with the current crisis we are now going to start at 145 and the discussion really is how much further down we can drive the next few years.” Brawn said.
While the reduction didn’t achieve the $100 million range, there are discussions to reduce that further over time. Perhaps a figure of $130M from 2022 onwards etc. Not much is being said publicly about the amount of discussions taking place between F1 and the teams other than to say that there are many and most likely frequent. Deputy director of Williams F1, Claire Williams, said:
“They’ve been really productive and I think everyone has understood the enormity of the situation.
“Everyone’s being really responsible in ensuring the future of our sport and putting the things that need to be in place in place, so that we the teams all have a strong future in this sport.
“That’s been the work that’s been going on over the last six weeks and I think we’re nearly at the end of that process now.”
The smaller teams are seeking major cost reductions as well as cash to keep the teams solvent during this downtime and stunted 2020 season. Ross Brawn says that F1 is focused on trying to assist as much as possible.
“We’ve got 10 very good teams in Formula 1 and we want to keep it that way,” insisted Brawn.
“We’ll judge what level we should support the prize fund in the next six to 12 months. If we lose teams in this period, it’ll be a tragedy.
“We’re working very hard on a fair and equitable way amongst the teams. I think Liberty have shown their strengths and created this fighting fund made available and we now need to see how things develop.
“We need to look at what the calendar looks like, look at what the income is like for the rest of the season, and then sit down with the teams and make sure we all continue on this journey, because the future looks so good.”
One of the key elements for me is that the technical regulation changes have been put off until 2022 and this means that the cost cap will be in place meaning that the teams, unlike previously, won’t have unlimited budgets to create the new F1 car under the new technical regulations. That could be a bit of an equalizer…I say, “could”.
Hat Tip: Sky Sports F1