Budget about to be lowered to $145 million

No one will be happy, everyone will make do. Ross Brawn, sports director of the F1, announced that the expenses of each of the 10 teams on the grid would be limited to 145 million dollars (134 million euros) from next season. 

The initial budget ceiling was $175 million (€161 million) but the COVID-19 crisis got in the way. By severely disrupting the progress of the 2020 season, the pandemic pushed F1 leaders to act quickly and strongly to ensure the survival of its participants. 

In recent weeks, everyone has tried to influence the content of future measures. McLaren thus openly campaigned for a lowering of the budget cap to 100 million dollars (92 million euros) through the voice of its CEO Zak Brown, while his counterpart Ferrari Mattia Binotto advocated a tiered ceiling depending on the structure of the team. 

It appears that a compromise has been found.

« We started at $175 million and it was already a long battle to agree on that amount., recalled Brawn in an interview with Sky Sports F1. In light of the current crisis, we will ultimately start from $145 million and the discussion now consists of knowing how much further we can go.

There have been a lot of discussions recently and we are reaching the final phase of this consultation. The situation will become clearer very soon. 

The initial objectives of the budget cap were: to narrow the gaps on the grid and make F1 more economically viable. This kind of aim speaks to both the big teams and the more modest ones. ».

Former Ferrari technical director and team principal Mercedes also ensures that the distribution of F1 revenues, another major subject on the negotiating table, will be fairer in the future. 

« The mid-pack teams will be much better off, promises Brawn. By reducing the spending ceiling and improving the allocation of financial rewards, a medium-sized structure should be able to score podiums, or even compete for victory, while generating profits. If we achieve these objectives, the future of the discipline appears much healthier and more peaceful. ».

Remember that certain items of expenditure will not be included in the cap budget, in particular the salaries of the drivers as well as the remuneration of the 3 highest-ranking employees in the team.