Budget cap: Carey turns up the heat on F1 teams

Formula 1 CEO Chase Carey, supported by the FIA, has put the pressure on the sport's top teams to accept a revised budget cap set to be introduced from 2021.

After a year of talks, mediation and endless negotiations over the future of Grand Prix racing between F1's commercial rights holder, the FIA and the teams, Liberty Media got tough last week in Geneva at an F1 Strategy Group meeting.

According to reports from Auto Motor und Sport's Michael Schmidt, Mercedes and Ferrari's hopes of securing an increase of the final threshold of F1's prospective cost cutting plan from $150m to $200m have been trounced by Liberty's unilateral decision to cap the upper limit at $135m!

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However, a three-year glide path will remain in order to facilitate the teams' progressive reduction in resources. Spending will be capped at $185m in 2021 and at $160m in 2022, with the final $135m limit implemented in 2023.

While Liberty and the FIA appeared last week to go for a resolute 'take it or leave it' approach, the details of what exactly the digressive numbers shall include in terms of exemptions have yet to be finalized.

Reporting from AMUS suggests that Formula 1's managers have run out of patience with the teams.

With a June 30th deadline - as determined by the FIA's 18-month notification rule with regard to major changes to F1's sporting and technical regulations - looming, Liberty feared that F1's top teams were attempting to prolong talks to gain time and enforce a status quo of F1's state of affairs come the end of June.

Crunch time is nearing for F1's teams and Chase Carey has taken off his hat.

It's about time, and as all parties enter the final stretch to finalize the future of Formula 1, one can only hope that the American executive's tough guy routine will pay off!

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