F1: Teams agree to a budget cap of 145 million as of 2021
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- GPblog.com
There is finally an agreement between the Formula 1 teams on lowering the budget cap. It took a few weeks before the race stables were in line, but the decision was made on Monday afternoon. From the 2021 season onwards, in the pinnacle of motorsport, the budget cap will be $145 million per year.
That's what Ross Brawn revealed as sports director of Liberty Media at Sky Sports. Initially, the budget cap was supposed to be $175 million per season, but now, due to the financial problems of the corona crisis, there will be $30 million off the orginal budget.
Several large costs such as drivers' salaries are not included in this amount. The teams all gave their yes-worth during a video-meeting earlier on Monday. "We started at 175, that was a long battle to get it there, and with the current crisis, we’re now going to start at 145," said Brawn in a first reaction.
Even lower budget cap in the future
It is not yet clear whether the amount will decrease further in the coming years. That is what smaller teams are arguing for, but especially Ferrari and Red Bull Racing seem to be against it. They are afraid that their position will be affected if the field is levelled. "The discussion (now) really is how much further down we can drive the next few years.”