F1 budget cap could be phased in from 2019

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Initial proposals for a budget cap in Formula 1 are likely to be submitted to teams at next Tuesday's Strategy Group meeting.

Recent reports suggested the imposition of a $150M limit on spending, but Germany's Auto Motor und Sport believes the figure will actually be 150M euros and could go as low as 100M euros.

The publication also reports that the budget cap would likely be applied incrementally, with 2019 determined to be a "trial year", with no penalties for overspending and the specific cap to not include driver, top management or marketing costs.

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"Each team will get an independent FIA accountant assigned to them," wrote Auto Motor und Sport correspondent Michael Schmidt claims.

It's likely the thought of an 'independant' FIA official, privy to sensitive information, prowling the corridors of each outfit's base will have everyone up in arms following the recent unanimous condemnation by the teams of the FIA's former tech boss Marcin Budkowski's move from the governing body to Renault.

The premise upon which the budget cap is based is Formula 1's attempt to level the playing field among competitors.

Ensuring the long term economic viability of F1's smaller teams while also attempting to make them competitive is a complicated conundrum however, and one which will likely require a sense of compromise from the bigger teams.

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Phillip van Osten

Motor racing was a backdrop from the outset in Phillip van Osten's life. Born in Southern California, Phillip grew up with the sights and sounds of fast cars thanks to his father, Dick van Osten, an editor and writer for Auto Speed and Sport and Motor Trend. Phillip's passion for racing grew even more when his family moved to Europe and he became acquainted with the extraordinary world of Grand Prix racing. He was an early contributor to the monthly French F1i Magazine, often providing a historic or business perspective on Formula 1's affairs. In 2012, he co-authored along with fellow journalist Pierre Van Vliet the English-language adaptation of a limited edition book devoted to the great Belgian driver Jacky Ickx. He also authored "The American Legacy in Formula 1", a book which recounts the trials and tribulations of American drivers in Grand Prix racing. Phillip is also a commentator for Belgian broadcaster Be.TV for the US Indycar series.